Bank of America Corp. apparently hates the bank branch — again. The question is, should it?

Last week’s announcement that Bank of America was shuttering 10% or so of its 6,100 branches just screamed, “Here we go again!” We’re back to the same old debate about whether branch banking has a future. It wasn’t too long ago that branches were viewed as passe. That was before the branch boom in the early 2000s spearheaded by Washington Mutual. So many bank branches sprang up that there were municipalities that sought to limit their zoning, arguing that bank branches dampened small-town foot traffic and commerce.

The debate is obviously different now. Bank of America is not of that view that branches are bad, but that the customer is going elsewhere.

From the WSJ on July 28:

A seven-month review by Bank of America Corp. of customer usage patterns shows less and less dependence on traditional outlets, the bank’s head of consumer and small-business banking said Tuesday.

The ongoing strategic review, which began in January, showed that nearly 50% of all deposits to the bank are made at an automated-teller machine, up from 33% just six months ago. In the last 18 months, about 2.8 million Bank of America customers have started banking by cell phone, he added, and Bank of America has a 60% market share of bills paid online.

But as one commentator on the story explained it, the change in customer preferences is not without prodding from Bank of America:

From 33% to 50% in 6 months – Have you been to a BOA recently, now, BOA employs people outside of the door and they encourage you to go to the ATM. I have been harassed and discouraged to go to the teller. I deposit significant amounts to the bank for an organization and feel more comfortable depositing the check at the teller. But nowdays whenever I go the managers or the people at the door ask many questions and encourage going to the ATMs.

To me, the debate over branches is moot. What is more interesting about these developments from BofA is their implications on marketing. Banking is now 10 years into a shift in marketing toward a branch-driven model, whereby the branch acts not just as a centrifuge of services, but a 3D, 24/7 marketing vehicle.

But recessions do funny things. Recessions can diametrically change consumer behavior, and when consumer behavior changes, banks are willing to change as well. This shift away from branches offers the opportunity for banks to invent a new marketing model, a virtual one, that generates equal demand and brand awareness, without the real estate costs. The central challenge will be creating a brand that “feels” as solid as a branch-banking network without using branches to do so. Can it be done? Can a marketing program that is heavily leaning on virtual channels create similar results? I think so. As time goes on, virtual presence will not be feel as “virtual,” but will be considered more solid. After all, eyeballs are eyeballs and they translate into brand awareness online as they do offline. Exciting times, for sure.