Over 700 bank branches nationwide have closed in the first three months of this year, making it more difficult for thousands of clients to obtain basic banking services.
More than any other bank, Bank of America set the trend by eliminating 132 of its locations between January and September. Other big banks followed suit, with TD Bank closing 52 branches in the same period, Chase closing 90, and Wells Fargo closing 92.
A number of smaller institutions also played a role in the total decrease of physical sites, in addition to these major closures. Although their respective closure rates were lower than those of the larger banks, they include PNC, Citizens Bank, Woodforest, Fulton, and Capitol One.
New York lost 64 branches in 2024; other states that experienced between 41 and 47 closures during this time included Pennsylvania, Texas, Ohio, Florida, and New Jersey. New York was one of the states with the highest number of closures.
There is no concrete evidence that all banking services will be shifted online, but if bank branch closures continue at their current rate, estimates indicate that more than 1,000 branches will have closed by the end of this year alone.
Looking further ahead, recent research suggests that the last physical bank branches in the United States may close as early as 2041, assuming the current trend continues.
Reasons for the high frequency of bank branch closures
The tendency of banks to combine branches, frequently combining two local offices into a single, larger facility, is one factor contributing to the high number of closures. According to a Bank of America spokesman, this consolidation approach includes many of their closures.
“We have a strategic advantage thanks to our financial center network, which is essential to our business,” the representative said. Additionally, they stated that the bank had established more than 40 new financial centers across the country in 2024 and that branch sites are frequently modified in response to foot traffic and client demands.
They explained that the majority of this year’s closures were due to branch relocations to better sites or the merger of adjacent branches.
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Another important factor influencing this tendency is the financial savings that come with closing branches. Since maintaining a freestanding branch typically costs $2.6 million annually, many institutions find consolidation and closures to be an alluring cost-cutting strategy.
The federal agency that regulates national banks, the Office of the Comptroller of the Currency (OCC), receives reports from banks on their branch opening and closing plans and provides a weekly overview of these activities.
Like Bank of America and U.S. Bank, Wells Fargo, another significant branch closure player, expressed similar thoughts.
lagradaonline: Massive closure of thousands of branches of major banks in the US – This is what happens
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