BANK of America has already closed seven branches this year, shutting down some branches that have served neighborhoods for decades.
The bank closed branches in four states as online banking began to make in-person banking defunct.
Bank of America is closing several branches nationwide[/caption]
The nationwide bank has steadily closed down stores this year, with California being hit the hardest by the closures.
Bank of America shut down three branches in California.
The bank has shut down other branches in South Carolina, Kentucky, Texas, and Nevada.
Those whose local branch was affected by the closures will typically get a notice 90 days before it closes, according to Go Banking.
The bank will then direct customers wanting to go in-person to the nearest location or to use the bank’s app or ATM.
Bank of America isn’t the only major US bank closing branches this year.
In the past six weeks, nearly 80 branches from various banks have closed.
“The closing of bank branches reflects to a large extent a move to digital and online banking, which I expect will only continue given the changes in technology,” Carola Frydman, a professor of finance at the Kellogg School of Management, told Newsweek.
During the summer, 74 branches closed, aligning with recent trends and leaving more consumers without access to crucial banking services.
Citizens Bank and Huntington Bank have both closed various locations throughout the country.
Wells Fargo and Chase both shut down 14 different locations.
Additionally, PNC shut down seven locations nationwide.
The closures hit Texas the hardest, as it experienced nine shutdowns across several banks during the six-week period.
New York, California, Florida, and Michigan also trailed behind as each state saw several branches shut down.
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
Source: Integrated Cash Logistics
The closings follow the steady decline of banking branches nationwide since 2018.
Despite the mass closures, banks continue to open new branches across the country.
“We continue to invest in our branch network to deliver experiences our customers love,” a Chase spokesperson told The U.S. Sun.
“So far this year, we’ve opened 83 new branches nationwide.”
“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.”
