multi-office banking, generally defined as accepting deposits or making loans at facilities away from a bank's home office. Branch banking has gone through significant changes since the 1980s as banks responded to a more competitive nationwide financial services market.
In the 1990s, regulatory limitations on bank branching, such as the 1920s era mcfadden act that restricted branching to a bank's home state, were finally lifted. The Riegle-Neal Interstate Banking & Branching Efficiency Act of 1994 authorized well-capitalized banks to acquire branch offices, or open new ones, anywhere in the United States outside their home state after June 1, 1997. Most states passed laws enabling interstate branching prior to that date. Branch banking networks are gradually evolving into multi-state financial services networks where depositors can access their accounts from any banking office. Financial innovation such as internet banking will also influence the future of "bricks and mortar" banking by potentially reducing the need to maintain extensive branch networks to service consumers.
