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Branches Still Pay Off for Canada’s Banks Even in the App Era

  • RBC, TD lead rivals in capturing more sales per location
  • Revenue from branches has soared in banking shift to advice
A Royal Bank of Canada branch in Toronto on April 6, 2017.
A Royal Bank of Canada branch in Toronto on April 6, 2017.Photographer: Cole Burston/Bloomberg

In a world reliant on smartphone apps, bank branches may no longer be Main Street mainstays, with red velvet ropes between brass stanchions herding customers to tellers behind wickets.

But they’re still an important part of banking and, in Canada, the two largest lenders are beating their smaller rivals at drawing more and more revenue from physical locations. Royal Bank of Canada and Toronto-Dominion Bank earn C$14 million ($10.6 million) a year from each of their domestic branches, distancing themselves from smaller competitors in the process.