Hawaiʻi’s largest banks have ramped up branch closures since the COVID-19 pandemic. But the interior designs are shifting to give better in-person service in the digital age.
Banks across the nation are shrinking the footprints of their physical branches. But because Hawaiʻi relies so heavily on relationships, the state’s largest banks are trying to meet customer expectations while adapting to the digital era.
Branches face decreasing foot traffic, rising operating costs and expiring leases, giving opportunities to pull the plug on some locations.
Central Pacific Bank has seen a dramatic drop in in-person transactions, but 80% to 90% of new bank accounts are still created in their branches.
Bank of Hawaiʻi, Central Pacific Bank and First Hawaiian Bank have closed a total of 35 branches in the past five years. Twenty-six of those closures happened during the COVID-19 pandemic.
Since COVID, branches have been navigating the evolving way customers approach banking. That’s led to modernization and increased employee training.
In some rare cases, they’ve even opened new branches. For example, First Hawaiian Bank purchased a 20,000-square-foot parcel in Kāneʻohe as part of its long-term community vision.
In 2020, the bank also bought some parcels in Kakaʻako for $7.5 million. Specific plans remain uncertain.
Bank of Hawaiʻi is investing in a new location in Hawaiʻi Kai, while Central Pacific Bank plans to open new branches in Līhuʻe and Honolulu.
