- Over the past decade, American banks have permanently closed 13,000 branches
- If your local branch closes, you may be able to access services without having to travel
- Is your local branch closed? Tell us how this has affected you at money@dailymail.com
Banks close hundreds of branches a year – this month, some 41 closures were announced in one week and nine US bank locations were among those affected.
Bank of America, Chase, PNC, Citizen, Capital One, First National Bank of Pennsylvania and Huntington also said they were cutting branches.
Such closures are a huge blow to customers who want to visit in person to file a document, make a withdrawal or deposit, cash a check or simply review their finances with a trusted bank manager.
Others, especially the elderly, may have difficulty accessing online banking services due to a lack of knowledge of the internet or smartphone apps.
Customers can visit the next town or city, but it may mean driving an hour or even across state lines, as one DailyMail.com reader told us. So what can you do if your bank has closed your local branch and you don’t want to travel?
Over the past decade, U.S. banks have closed about 13,000 branches. The photo shows a closed branch of Bank of America in New York
Concerns about bank branch closures are most pronounced among older people, for whom mastering online banking may not be easy
Unfortunately, options are limited to switching banks or researching which services can be accessed through a nearby ATM.
The number of bank branches in the US peaked around 2011 at more than 85,000. Over the past decade, the number has shrunk by about 13,000, according to a combination of data from the FDIC and the OCC.
The Covid pandemic has catalyzed the already rapid rise of online banking and although 2020 saw the sharpest decline in branch numbers, closures have continued.
Online banks
While traditional banks have expanded the breadth of services they offer through an internet browser or smartphone app, online-only banks are optimized to offer a full range of services remotely.
Some of the most popular online banks are Ally and SoFi, which have useful mobile apps with convenient and intuitive user interfaces.
Since such banks do not have their own ATMs, many waive the charges incurred at other banks’ ATMs at the end of the month.
For example, SoFi advertises that it has a large free ATM network that can be viewed in its mobile app.
Online-only banks like Ally and SoFi will reimburse fees incurred using other banks’ ATMs
Traditional banks increase the range of services via an internet browser or smartphone app
Check ATM options
ATMs – or ‘cash machines’ – have become increasingly capable, often offering services beyond simple cash withdrawals.
Simon Powley, senior director and head of banking advisory services at Diebold Nixdorf, told the ATM Marketplace publication that banks are exploring different machines that will make the ‘customer experience… as good as at the counter’.
The ITM, which stands for ‘interactive ATM’, is also being introduced. It is a computer with a touchscreen designed to give customers a virtual version of the in-person experience.
Sometimes the customer can see and speak to a real cashier through a video call hosted on the machine.
Powley said ITM’s main goal is to expand bank hours to serve more customers just outside a branch lobby.
If such devices are offered in your area, you may be able to make daily deposits and withdrawals for some services without having to go to the trouble of switching banks.