Banks have changed their tune. Back in the 80s, they told us we’d soon do most of our banking at ATMs, tellers would be­come scarce, and if you wanted to talk to a banker it would cost you extra. In the 90s the internet hit and they told us we’d all be banking online: paying our bills, simultaneously balancing our checkbooks and a cup of coffee at home in front of a computer screen. No more driving to the branch, standing in line, waiting on this side of the velvet ropes.

Then a funny thing happened. Banks remembered that people like to work with other people. They realized that financial products are all pretty much the same. They also realized that service—last seen in a recurring role in a bank about 1979—could be a differentiator. Cha-ching! Branch building took off. Ten years ago there were some 82,302 federally insured branches in the U.S. according to the Federal Deposit Insurance Corporation. Last year there were 94,559.

Banks and credit unions crowd prime retail sites today right next to new com-petitors who offer banking products: insurance companies, brokerage firms, even retailers like Wal-Mart. The banking industry’s wave of mergers and acquisi­tions has stoked the competition even more. The boom in branch construction is all about survival. Up to 90% of customer relationships are formed—and lost—in branches, according to consultants Booz Allen. Online banking isn’t growing as fast as banks expected, either. Indus­try analysts say the reason is the “trust gap.” Thanks to identity theft, phishing, and a majority of people inexperienced or uncomfortable with online financial transactions, online banking isn’t grow­ing as fast as it might. Trust, it turns out, is not just a bank depart­ment. Trust is a valuable asset that’s built in person, in places where people meet.