A bank branch may be located in the next airport terminal lounge or club you visit.

• According to FDIC data, the number of bank branches nationwide increased for the first time in a decade in 2023.
• JPMorgan Chase is leading the way in aggressive branch expansion plans, with 500 new retail locations and 1,700 renovations.
• Banks are expanding their retail presence in airport terminals across the U.S. by offering "lounge"-like financial centers to attract both existing and new customers.

Nicolette Nelson was rushing to catch her flight back to Fairbanks at Cincinnati/Northern Kentucky International Airport (CVG) when she was hindered by a medical emergency. She didn't make it to her gate and had to spend the night in a Cincinnati hospital. The following day, she recovered and was eager to return home, but her flight kept getting delayed.

In a bank, Nelson spent hours waiting for her flight and passed the time on electronic devices in a quiet cubicle.

"It's been really quiet, and that's what I need," Nelson said.

Fifth Third Bank aimed to attract this type of traveler with its recent rebranding of its 40-year-old CVG branch as a combination lounge and lending center. Weary travelers and busy entrepreneurs claim prime spots in the bank, away from the airport chaos, while corporate travelers utilize the center to maximize their business opportunities.

Lisa Slocum, the airport Fifth Third Bank branch manager, recalls that one woman was interested in renting her office to work but she directed the woman to other options within the branch.

On a recent day, Hannah Thelen and her mother, Ashley Thelen, stopped in at the bank to convert currency while on their way to Spain.

As she converted dollars to euros, Ashley Thelen said she loves the central location.

Terminal B's central location is a maze of trams, moving sidewalks, and concourses, making it difficult for customers to reach it, especially since it is past the TSA checkpoint.

Capital One has followed suit with other financial institutions by creating airport lounge vibes. In 2020, the bank closed its branch at Dulles International Airport and established "airport lounges" for cardholders in Dulles, Denver, and Dallas. Unlike Fifth-Third's CVG branch, Capital One's airport lounges offer amenities on par with an airline rewards club but exclude banking services.

If CVG were a city, it would rank among the top five largest cities in Kentucky on most days, with 16,000 workers employed on the airport campus daily and nine million passengers passing through the gates annually. This presents a significant opportunity for banking services, as full-service airport bank branches are relatively rare in a retail landscape that often resembles an upscale mall more than a terminal.

The Wings Credit Union branch at the Minneapolis-St. Paul International Airport primarily serves its large number of employee members, rather than the general public. Despite the higher airport rent, the branch is still a worthwhile investment due to its visibility and advertising potential.

Andersen stated that in order to achieve the same level of visibility, we would need to allocate significantly more resources to other forms of advertising.

In the digital age, with bank branches facing existential scrutiny, some financial companies are viewing airports as a viable and visible location to maintain their presence.

Big banks are adding hundreds of branches

The growth in the number of airport branches by banks and credit unions indicates that the predicted demise of in-person banking due to digital technology is not occurring as expected. Despite the long-term trend of less retail footprint, branches are experiencing a bit of a resurgence. In fact, FDIC data shows that 2023 marked the first annual increase in branch count nationwide in a decade, with nearly 70,000 branches. This rebound is being driven by banking giants such as JPMorgan Chase and PNC, which have announced plans to open more branches, with Chase planning to add up to 500 branches and renovate 1,700, while PNC is investing $1 billion to add 100 new branches and renovate another 1,000 over the next three to five years.

Last month, Fifth Third Bank, the tenth-largest bank in the US by deposits, renamed its 40-year-old CVG location, receiving significant local media coverage, demonstrating its dedication to airport banking.

John Sieg, regional retail executive for Fifth Third Bank, stated that there are very few full-service branches in airports, and this is a unique offering. The bank aims to create a Delta-like Sky Club, but with on-site banking services such as cashing checks, checking balances, and converting currency, accessible to all. Additionally, customers will not be charged an overdraft fee for using the sofas in the lounge.

Sieg stated that our goal is to provide travelers with a full-service banking facility and a place to relax with us. They can spend the entire day with us if their flight is delayed, and we have had customers who have done so.

The airport in Las Vegas has a full-service branch operated by Wells Fargo, which has been in a multi-year relationship with the airport. The bank spokeswoman did not provide much information about the branch, but it is likely popular in Vegas due to the abundance of slot machines.

At Hartsfield-Jackson Atlanta International Airport, Truist Bank, formerly SunTrust, prioritizes serving customers while also benefiting from the high level of brand visibility provided by its full-service bank branch.

Not all industry professionals agree with combining concerns about airport security and timely arrival with financial management.

McAdam stated that bank branches in airports would likely handle a significant amount of transaction volume but very little value-added volume from customers seeking to open accounts or receive advice.

Capital One has opened some cafes in New York that cater to remote workers, providing a financial vibe without the traditional bank setting of vaults and tellers.

Many airport customers prioritize travel over banking, according to Fifth Third. The CVG branch handles approximately 1,700 transactions per month, says Sieg.

He stated that the branch's visibility compensates for its lower transaction count compared to a traditional bank mart or office.

The bank provides various spaces, including a service bar for travelers to use their tablets while sipping coffee, and a private office with phones, a hydration station, sofas, and overstuffed chairs, which attracts remote workers.

We wanted to provide the best welcome sign possible for all visitors, regardless of whether they are customers or not. This space is open to everyone and can be used by anyone.

During a layover, one can apply for a mortgage or open a savings account at the branch.