NEARLY 80 bank branches have shut down their operations in the past six weeks, including major institutions such as Chase, Bank of America, and Wells Fargo.
The 74 spots closed this summer, aligning with recent trends and leaving more consumers without access to crucial banking services.
Chase, Bank of America, and Wells Fargo are among the major banks that shut down 74 branches recently
A number of banking giants closed shop during the six-week period between July 17 and August 28.
Bank of America, Wells Fargo, and Chase each shuttered 14 branches during that time, marking the banks most impacted by the closures, per Daily Mail.
PNC customers saw seven branches turn off their lights, US bank axed operations at three locations, and the remainder were comprised of other institutions like Citizens Bank and Huntington.
Texas was the state most heavily impacted by the slew of closures, experiencing nine shutdowns across several banks during the six-week period.
New Yorkers were also hit hard by the shutters, losing seven branches, followed by California, Florida, and Michigan, with five branch closures each.
National banks and federal savings associations must report all proposed branch closures to the Office of the Comptroller of the Currency.
The OCC reviews the closure information to ensure compliance with relevant regulations and then publishes the filings in a weekly report.
Although the listings signify an intent to shut down, they are not final confirmations.
And while branch shutdowns are becoming increasingly common, major banks are still opening new locations.
“We continue to invest in our branch network to deliver experiences our customers love. So far this year, we’ve opened 83 new branches nationwide,” a Chase spokesperson told The U.S. Sun.
“Enhancing our branch network sometimes includes consolidating or closing branches where we see overlap or foot traffic is low, but in most cases, there’s another branch within two miles.”
The 74 shutdowns are part of a wider industry trend, with bank branches shutting down left and right.
Bank branches began closing steadily after their peak in 2009.
Following the 2008 financial crisis, many banks consolidated and merged, resulting in the shuttering of inefficient branches to lower costs.
Why are banks closing down?
There are a number of factors contributing to the accelerating levels of bank branches shutting down in the US:
- Bank assets – such as cash, investments, loans, and reserves – are dropping in value due to increasing interest rates, leaving banks without enough assets to pay off their debts
- Economic factors such as higher interest rates, slowed economic growth, inflation, recessions, and housing market crashes have contributed to bank branch closures
- Following the 2008 recession, stricter regulations, including FDIC deposit protection and potential congressional oversight, may increase the risk of bank branch closures
- Tech changes such as the rise in online and mobile banking have made it more difficult for bank branches to make ends meet
Branch shutdowns especially accelerated following the COVID-19 pandemic, when closure rates essentially doubled.
The pandemic helped to solidify Americans’ digital banking habits, with consumers becoming more and more reliant on online banking.
Beyond the major shift to online and mobile banking, financial institutions are also shuttering branches to reduce the costs associated with rent, staff, and utilities, putting the saved money towards their digital platforms.
New research has even uncovered that bricks-and-mortar banks could eventually become obsolete.
The last physical branch could shut down as early as 2041, per a report from Self Financial.
This number was calculated using the rate of net branch closures across the US, which has averaged 1,646 annually since 2018.
While bank closures aren’t anything new, several major financial institutions have major changes in the works.
For example, Wells Fargo is slapping a new monthly $15 fee on “everyday checking” accounts starting on November 29.
Meanwhile, Chase customers are scrambling to retrieve their valuables after the bank issued an urgent warning it’s “phasing out” a key safety feature.