US banks have closed nearly 10,000 branches since 2019
EXCLUSIVE: The Death of the Bank Branch! US banks have closed nearly 10,000 branches since 2019, leaving numerous communities without access to basic financial services
- The number of branches closing has steadily accelerated since 2019 as banks increasingly move to digital services
- Personal services provide a lifeline for customers who want to speak to an advisor, access cash, or deposit a check
- As of April this year, there are a total of 78,475 branches nationwide serving customers of older and smaller banks
Nearly 10,000 bank branches have closed in the US in the past four years, accelerating America’s transition to automated banking.
The bank branch carnage has steadily worsened, with closures reaching an all-time high last year.
The number of locations being cut has increased from 1,417 in 2019 to 3,066 in 2022 – according to exclusive data from S&P Global Market Intelligence.
A total of 9,536 physical branches of small and large traditional banks have closed their doors since 2019, leaving vulnerable communities adrift without access to basic banking services.
In 2022, Truist Bank led the pack with the most branch closures, closing 422 outlets nationwide, while Bank of America cut 322, according to data.
Truist Bank closed the largest number of bank branches in 2022, according to S&P Global Market Intelligence
With inflation rampant and the cost of living rising, experts warn that customers are more likely to discuss their finances in person with their bank.
Affiliates provide a lifeline for anyone who wants to speak to an employee in person or perform simple tasks such as cashing a check, making a simple deposit, or accessing cash.
The dwindling number of outlets means residents have to travel further to get to the nearest bank – often hitting vulnerable and older customers the hardest.
According to the National Community Reinvestment Coalitionone-third of the sites closed between 2017 and 2021 were in predominantly lower-income, majority-minority areas.
Accelerated closures risk communities becoming so-called “banking deserts” — when they don’t have access to a bank or credit union within a 10-mile radius — leaving residents increasingly vulnerable to falling prey to expensive credit options like payday loans.
Banks are increasingly focusing on digital services – a development that has been accelerated enormously by the Covid-19 pandemic.
Nerves surrounding the transmission of the virus discouraged households from exchanging cash and encouraged them to use digital payment apps such as Venmo and Block Inc.’s Cash App.
A Federal Reserve study showed a 12.4 percent increase in digital transactions in the first quarter of 2020 alone.
But some customers may be reluctant to use online banking or have limited access to these services, making them more dependent on brick-and-mortar outlets.
The closures are not limited to small banks in rural communities – they are also happening at large legacy banks in densely populated areas.
Bank of America will close 322 bank branches in 2022, according to S&P Global Market Intelligence
PNC Bank closed 21 branches in April of this year alone – the most of any U.S. bank
Major banks, including Bank of America, Capital One, Citizens Bank, JPMorgan Chase and Wells Fargo, will close a total of 20 New York branches in the coming months.
According to S&P Global Market Intelligence, 79 locations closed in April of this year alone, bringing the total number of all banks in the US to 78,475.
PNC Bank was the worst offender in April, closing 21 branches, including eight in Maryland.
In the past year, the bank closed 181 branches and opened just 19 in the US.
According to the data, Pennsylvania recorded the highest number of grid closures in April – 13.
New Jersey claimed the second spot with 11 net closures, followed by New York with 10.