In the first three trimesters of this year there were over 700 Bank branches across the country have been closed, making access difficult for thousands of customers essential banking services. Bank of America The company pioneered this trend, closing 132 of its locations between January and September, more than any other institution. Other major banks followed suit including Wells Fargo with 92 closures, chase at 90, and TD Bank with 52 closures in the same period.

In addition to these widespread closures, several other smaller institutions contributed to the overall decline in physical locations. This includes PNC, Citizens Bank, Woodforest, Fulton and Capitol One, however, their individual closure numbers were lower compared to the larger banks. States that saw particularly high closures include New York, which lost 64 stores in 2024, and others such as Pennsylvania, Texas, Ohio, Florida and New Jersey, which each experienced between 41 and 47 closures during that period gave.

If Closing of bank branches Forecasts suggest that over 1,000 stores will be closed by the end of this year alone, and looking further into the future, recent research suggests that the last physical bank branches In the US, closures could occur as early as 2041 if current trends continue, although nothing clearly suggests that all banking services will actually move online. This forecast is based on an analysis by self-financial, This calculated the average net closure rate of 1,646 branches per year since 2018.

Reasons why bank branch closures are so common

One reason for the high number of closures is the trend among banks to consolidate branches, often combining two local branches into one larger facility. A representative of Bank of America explained that many of their closures were part of this consolidation strategy. “Our financial center network is the core of our business and gives us a strategic advantage,” emphasized the spokesman. They also added that the bank had over 40 opened new financial centers will be introduced nationwide in 2024 and that the locations of the branches will be regularly adjusted to the footfall and customer needs. Most of the closures this year were the result of neighboring branches merging or relocating branches to more suitable locations.

Despite the increasing Dependence on digital banking, For many customers, physical branches still play a crucial role, especially for certain services that are difficult to access online. While a large portion of Americans now complete the majority of their tasks Banking via digital platformsMany still visit the branches for specific needs. A report found that nearly two-thirds of adults in the U.S. continue to use drugs Bank branches for cash deposits, while more than half prefer personal contact Bank advisor. This is especially true for older customers who may find it difficult to navigate Mobile banking tools. In fact, 39 percent of respondents in a recent survey said they had more trust in banks physical branches compared to those who operate exclusively online.

This shift in Customer preferences towards online banking is recognized by many Banks involved in these closures. A US Bank The spokesperson commented on the changing banking habits of its customers, emphasizing that “customers’ banking preferences and behavior are changing, including a rapid migration towards digital and mobile banking platforms and a desire for greater simplicity.” As a result, the bank is reevaluating its physical presence, consolidating certain stores and expanding its digital offerings. While some locations are closing, US Bank still investing in the opening new branches and enhance others.

The associated financial savings Closure of branches is another important factor driving this trend. On average, maintenance costs about $2.6 million per year detached branch, This makes consolidations and closures an attractive cost-cutting measure for many institutions. Banks are required to report their plans for opening and closing branches to the Office of the Comptroller of the Currency (OCC), the responsible federal regulatory authority national banks, which publishes a weekly summary of these activities.

Wells Fargo, another important player in Branch closuresrepeated similar feelings as Bank of America and US Bank. A Wells Fargo The spokesperson noted that while the bank is optimizing its branch network, physical locations remain an important part of its overall service strategy alongside its digital platforms ATMs. The spokesman further emphasized this Wells Fargo invests in both opening new stores and rehabilitating existing ones, while striving to minimize the impact of closures on customers and communities.