Branch banking

Branch banking is a multi-office banking, generally defined as accepting deposits or making loans at facilities away from a banks home office. Branch banking has gone through significant changes since the 1980s as banks respond to a more competitive nationwide financial services market.

Branch banking networks are gradually evolving into multi-state financial services networks where depositors can access their accounts from any banking office.
A branch of a bank is a retail location where a bank, credit union or other financial institution (and by extension, brokerage firms) offers a wide array of face-to-face service to its customers.

Historically branches were housed in imposing buildings, often in a neoclassical architecture. Today, branches may also take the form of smaller offices within a larger complex ,such as a shopping mall.
Services provided by a branch include cash withdrawals and deposits from a demand account with a bank teller, financial advice through a specialist, safe deposit box rentals, insurance sales etc

Today, with features such as automated teller machines (ATMs) ,telephone and online banking, customers can bank virtually anywhere, any time, which brings financial institutions to reduce their branch business hours or to merge smaller branches in to larger ones.
Some financial institutions ,in an attempt to show a friendlier image, offer a boutique or coffee-house like environment in their branches .with sit-down counters, refreshments ,interactive displays, music and playing areas for children.

Branching stabilizes banking systems by facilitating diversification of bank portfolios

When laws restricting competition are relaxed, bank profits generally decline.
Moreover, the increase in competition resulting from the removal of branching restrictions has been linked to the weeding out of weak banks.

The expansion of branching has facilitated an increase in competition.