As someone who used to work with a broad cross-section of banks and credit unions, I got the impression that they viewed their physical locations and "the personal touch" as what separated them from online-only services. Not a surprising conclusion, given that their physical-first clients would -- by virtue of their presence -- be over-represented in the minds of managers.

That said, having a bunch of physical branches provides as much an advantage as not having to buy gas when you use a horse instead of a car.