Coffee, sculptures, and financial advice. Banks try to make new branches less intimidating

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. airy / ˈɛər i / (adj.) – having a lot of open space through which light and air can enter
    Example:

    The new apartment is very airy because of its large windows and high ceiling.


  2. stale / steɪl / (adj.) – no longer new or interesting, often because of becoming too familiar
    Example:

    He decided to leave his job because the work had become stale and uninspiring.


  3. cookie-cutter / ˈkʊk i ˈkʌt ər / (adj.) – similar or looking very much like the others of the same kind, especially in a way that is not unique, original, or creative
    Example:

    His cookie-cutter resumé did not stand out among the hundreds of applications.


  4. clutter / ˈklʌt ər / (v.) – to fill something in a way that is messy and badly organized
    Example:

    Many stalls cluttered the park during the local festival, making it hard to pass through the crowded paths.


  5. intimidating / ɪnˈtɪm ɪˌdeɪ tɪŋ / (adj.) – making someone feel nervous and scared, often making him/her lose his/her confidence
    Example:

    Walking into the boardroom full of experienced executives was an intimidating experience for the new employee.


Article

Read the text below.

After years of closing or mostly neglecting physical bank branches across the U.S., the nation’s largest banks are spending hundreds of millions of dollars on refurbishing old locations or building new ones, and in the process, changing the look, feel, and purpose of the local bank branch.


Many of these branches are larger, airier, and meant to feel more comfortable for those walking in with difficult financial questions. Others are being designed as “third spaces” to allow local nonprofits or community representatives to hold workshops or seminars for customers or neighbors. They are a contrast to the marble-clad temples to finance built 50 or 75 years ago and the stale cookie-cutter branches that more recently cluttered suburban malls.


“Coming into a branch can be intimidating. We’re now creating these spaces so everyone can feel welcome,” said Diedra Porché, the head of community and business development of consumer banking at JPMorgan Chase & Co.


JPMorgan isn’t alone in designing branches that are focused less on sales and more on providing advice. Capital One opened its latest “café” in Union Square in May, a space that serves coffee and baked goods and allows anyone, Capital One customer or not, to sit inside the café and work and network.


“Banking shouldn’t be that experience of someone sitting in a suit behind a desk talking about your loan application, but it should be someone who is sitting with you, offering to help you through those questions about money and finances,” said Jennifer Windbeck, head of Capital One’s retail bank channels and operations.


Banks, such as JPMorgan Chase, Bank of America, and Wells Fargo have been steadily closing branches since the 2008 financial crisis. They saw little need for their networks of thousands of physical locations when fewer Americans were entering a branch regularly for routine banking needs, and ATMs had largely replaced tellers. In the branches that remained, customers often noticed threadbare carpets and well-worn office furniture and cubicles.


It seemed like the fate of the bank branch was sealed when the technological gains during the pandemic made it possible to buy a home or car without interacting physically with another human being.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Banks see little need for physical branches because few people were coming in and transacting online instead. Given this, why do you think banks still spend hundreds of millions of dollars on refurbishing old branches and building new ones? In your opinion, how will this affect the banking industry (ex. sales will increase if more people come into the physical branches)?
  • Do you think physical bank branches are still necessary in the digital age? Why or why not? In what situation is banking at physical branches better than online transactions? Discuss.

Discussion B

  • Have you ever felt intimidated or uncomfortable in a traditional bank setting? What do you think are the qualities of banks that make them intimidating (ex. stale designs, serious tellers/staff)? Discuss.
  • How has technology changed the way you interact with banks and handle your finances (ex. I feel less secure online, I don’t have to go to physical branches anymore)? Would you be more likely to visit a bank if it offered other amenities, such as cafés or airy offices? Why or why not? Discuss.