Not long ago, the local bank branch was an essential part of everyday life. Need to open an account, apply for a loan, or transfer money overseas? It’d require walking into a building, taking a number, and waiting. Paperwork, in-person signatures, and long queues were just part of the process.

Fortunately, things have finally changed.

These days, there are only a series of taps to access almost anything, and as a result physical banks are gradually becoming a lot less frequented. With mobile-first banking platforms, AI-powered services, and crypto-enabled accounts taking center stage, traditional banks and their brick-and-mortar branches are not as crowded.

Along with being technological, this shift in the way many do their banking is also cultural, generational, and global.

The Digital Banking Boom

For much of the 20th century, banking revolved around institutions people could visit. But starting in the 2010s, that model finally began to crack. Smartphones became smarter, internet access expanded globally, and customer expectations shifted. By the early 2020s, it was clear that convenience was king.

Fast forward to 2025, and digital banking is as much a given in most anyone’s smartphone.

Today’s customers, especially Millennials and Gen Z, want instant access to their money, 24/7 support, and tools that let them send, spend, and save—all without stepping foot inside a branch. For them, banking should work like streaming services or food delivery apps: seamless, intuitive, and on-demand.

Neobanks, born in the cloud and designed for speed, have stepped in to meet this demand. Platforms like Black Banx, for instance, have scaled rapidly by offering precisely what modern users crave: fast onboarding, multi-currency support, crypto integrations, and borderless account access.

In Q1 2025 alone, Black Banx reported:

• US$4.3 billion in revenue (a new quarterly record)
• US$1.6 billion in pre-tax profit—more than double the previous year’s Q1
• A staggering 78 million customers, up from 69 million just one quarter earlier

Beyond growth and revenue, a key aspect to the company’s success has also been reaching new levels of efficiency. Black Banx slashed its cost/income ratio to 63%, a level most legacy banks are still struggling to reach.

Why Physical Banks Are Being Less Frequented

It hasn’t been that traditional banks have stopped operating. It is just that many have launched mobile apps, introduced online account setups, and even dabbled in digital wallets. But the reality is, because of the limits of their legacy systems, they’re still playing catch-up.

Most legacy institutions are bogged down by their sprawling branch networks and layers of bureaucracy. Transforming decades-old infrastructure into sleek digital platforms isn’t cheap—or quick. On the other hand, neobanks are building from the ground up.

Here’s what’s pushing physical banks further into the background:

1. Friction-Filled Onboarding

Setting up an account at a traditional bank can still take days or even weeks. Often, it involves visiting a branch, presenting multiple documents, and signing physical forms. In contrast, Black Banx allows account creation with just a photo ID, all done online in minutes.

2. Limited Global Capabilities

Traveling or working internationally? Legacy banks often charge high fees for currency conversions or international transfers. Neobanks are built for a borderless world. Black Banx, for example, supports 28 FIAT currencies and a growing list of cryptocurrencies, making global spending and transfers seamless.

3. Slow Response to Cryptocurrency

While the world warms up to digital assets, many banks still treat crypto like a fringe trend. Neobanks embraced it early. Black Banx began accepting Bitcoin and Ethereum just one year into operations in 2016, and by 2024, had added Solana and the Lightning Network to its offerings.

4. High Operational Costs

Branches come with overhead: rent, staff, utilities. That bloats expenses and slows down innovation. By contrast, AI-driven digital banks automate everything from fraud detection to customer service, allowing leaner operations and better margins.

The Changing Face of the Modern Banker

Millennials and Gen Z—collectively over 4 billion people globally—are digital natives. They grew up downloading apps, streaming content, and managing life from their phones. For them, walking into a bank feels archaic.

Black Banx’s customer growth mirrors this trend. From 39 million users in late 2023 to 78 million by early 2025, the company’s rise reflects how younger consumers are voting with their downloads—not their feet.

But it’s not exclusive to the youth. Older generations have also caught on. The convenience of handling finances from a sofa—or a beach in Bali—is too good to pass up. As more people become comfortable with digital tools, even the once-loyal branch-goers are logging onto the likes of Black Banx instead of lining up at the institution in the busy downtown.

Reaching the Unbanked: A Global Opportunity

While digital banking is gaining ground in developed economies, perhaps its most transformative impact is in underserved regions.

Traditional banks have historically ignored vast swaths of the world—particularly parts of Africa, South Asia, and Latin America—due to the high cost of physical infrastructure and onboarding. That’s left 1.4 billion people unbanked, according to the World Bank.

Neobanks see that as an opportunity, not a burden. Black Banx, for instance, has made financial inclusion a central goal. In 2024 alone, the platform saw a 32% increase in SME clients in Africa and the Middle East, thanks to its digital-first, branch-free approach. All users need is an internet connection and a smartphone.

The Role of AI in the Digital Takeover

If there’s one technology accelerating the decline of physical banks, it’s artificial intelligence.

AI is helping digital banks streamline operations, reduce costs, and deliver personalized customer experiences—at scale. Among the standout platforms presently offer include:

• Chatbots & Predictive Support: Solving user problems 24/7
• Real-Time Fraud Detection: Catching suspicious activity before it causes damage
• Automated Compliance: Navigating global regulations without bottlenecks

Thanks to AI, Black Banx improved its cost/income ratio from 89% in 2023 to 68% in 2024. That’s a major efficiency leap in just one year—without sacrificing service quality.

What’s Next?

With digital banking moving at full throttle, where does that leave the branch?

Well, not entirely obsolete—yet. Traditional banks still hold advantages in areas like large-scale lending, regulatory relationships, and in-person services for those who prefer them.

But those advantages are narrowing. For its part, Black Banx’s 2025 goals is a preview of where the industry is headed:

• Reach 100 million customers
• Strengthen crypto-based lending and DeFi offerings
• Expand further into emerging markets
• Reduce operational costs through automation and AI

A Tipping Point in Banking

Physical bank branches won’t vanish overnight. Some will adapt, others will consolidate, and a few may even thrive as hybrid models. But the trend is unmistakable: banks now involve more bytes and a lot less bricks.

Apart from being efficient, digital finance like that offered by Black Banx is also more inclusive, flexible, and aligned with how people live today. Whether it’s an entrepreneur in Nigeria, a freelancer in Germany, or a student in Brazil, the need is the same: fast, borderless, hassle-free banking.