U.S. banks are closing because of an increase in internet and mobile banking, a rise in bank mergers, and unprofitable branches. Some banks have also cited the COVID-19 pandemic, which led many customers to conduct their financial business exclusively online, as a factor in their decisions to close branches.
Examples of Bank Closings in the U.S.
U.S. Bank shuttered close to 600 of its branches from September 2019 through the end of 2020.
Wells Fargo closed 700+ branches from July 2020 to October 2021.
Truist Bank closed more than 100 branches from December 2020 to January 2021 and plans to shutter up to 800 branches overall.
TD Bank closed 82 of its U.S. branches in February 2021.
PNC Bank closed nearly 160 branches in 2020 and plans to close another 120 by the end of 2021.
Capital One closed nearly a third of its branches between 2017 and 2020.
The U.S. has seen more than 4,400 bank branch closures, a decline of 5.1%, from 2017 to 2020. While closures are expected to save the banks millions of dollars, many of the communities these banks served will feel the consequences of these closings.
Rural and low-income areas where few branches existed in the first place will be the hardest hit, as closures create so-called “branch deserts.” This lack of local branches makes it harder for residents and small business owners to get traditional financing in their own communities.
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