By David Krayden – The Post Millennial
National banks continue to shut down branches at an alarming rate, with more than 30 locations being shuttered in just two weeks in July, the Daily Mail reports. Banks closing branches include Chase, Bank of America, PNC, Axiom Bank, Capitol, Citizens, Dollar Bank, Lemont, Wells Fargo and Zions Bancorporation.
Bank of America shuttered 11 branches with Chase and PNC both closing seven branches each. Florida lost the most branches, with Ohio, Virginia and Texas following with three branches each in those states. Bank of America closed 100 branches in 2024 alone. Over the past year, however, California saw the most closures at 72 while New York was second with 51 and Pennsylvania had 40 branches closed.
“These shifts in our branch network reflect that, more and more, our clients are using digital banking for their everyday financial needs and coming into financial centers for more significant needs or to have conversations about their finances,” a Bank of America spokesperson told the media outlet. Banks are hoping to move away from expensive real estate and actual bank employees to the virtual world of self-service.
“The majority of Americans, from Gen Z to boomers, are in less need of a traditional bank, which may explain the rising number of physical branches that have been closing over the past year,” Andrew Murray, lead data researcher at GOBankingRates told The Daily Mail.
The banks claim that their internal surveys indicate that the public prefers on-line banking to in-person banking and rarely actually enters a bank to conduct business.
“It’s likely that overhead costs (rent, maintenance, supplies and staff salaries) are a large factor, especially given that our survey shows how infrequently people visit brick and mortar banks,” Murray told the Daily Mail. As far as the bottom line is concerned, fewer buildings and personnel mean more money for banks, that spend an average of $2.6 million per location annually.