Over 60 US bank branches to close in a week
Major Banks Close Over 60 Branches in a Single Week
In a startling trend, more than 60 branches of major banks have filed for closure in just one week this month, marking a significant shift towards digital banking.
According to data from the U.S. Office of the Comptroller of the Currency, a total of 64 branches filed for closure between November 12 and 18. This report was highlighted by ZeroHedge, a leading financial news outlet.
The bank leading in closures is PNC Bank, the sixth largest bank in the country, which has been focused on reducing costs. PNC filed to shut down 19 branches across eight states, including Pennsylvania, Illinois, Texas, Alabama, New Jersey, Indiana, Ohio, and Florida.
During PNC’s recent earnings call, CEO William Demchak acknowledged the need to find ways to generate savings without hindering growth. As part of their cost-cutting measures, PNC has already closed numerous branches this year and aims to achieve $725 million in expense cuts next year. Additionally, the bank announced a 4% reduction in its workforce.
One of the main drivers behind these closures is the surge in online banking. With more people staying at home during the pandemic, the number of bank branches shutting down has doubled as customers increasingly rely on their bank’s website or mobile app for their banking needs.
According to the National Community Reinvestment Coalition, approximately 7,500 bank branches, accounting for 9% of all physical locations, have closed between 2017 and 2021.
CLICK HERE TO GET THE DAILYWIRE+ APP
While closing physical branches may save banks money, it also creates banking deserts where customers have to travel long distances to access banking services. This can lead to a decline in small business lending and the loss of employers and commercial tenants in the area.
Furthermore, the reduction in branches has resulted in more people turning to unregulated and predatory financial practices, as stated in a report by the National Community Reinvestment Coalition.
PNC Bank’s closures are expected to shift 60% of its banking business online. JPMorgan Chase, the second bank with the most closure filings, plans to shutter 18 branches in 14 states, including New York, Ohio, and Connecticut.
Other banks such as Citizens Bank, U.S. Bank, Bank of America, and Citibank have also filed for branch closures, impacting various states across the country.
This wave of closures signifies a significant transformation in the banking industry, as traditional brick-and-mortar branches make way for the convenience and efficiency of digital banking.
How is the closure of branches related to the bank’s non-interest expense?
R. This represents approximately 10% of the bank’s non-interest expense.
PNC’s decision to close branches is not unique in the banking industry. Many banks have been shifting their focus towards digital banking as customers increasingly prefer online and mobile banking services. This move not only allows banks to reduce costs associated with maintaining physical branches, but also caters to the changing needs and preferences of their customers.
Other major banks that have filed for branch closures include JPMorgan Chase, Wells Fargo, and Bank of America. JPMorgan Chase plans to close 9 branches, while Wells Fargo and Bank of America have filed for closure of 7 and 2 branches respectively. These closures are part of the banks’ ongoing efforts to streamline their operations and adapt to the evolving landscape of banking.
The rise of digital banking is revolutionizing the way people manage their finances. With the convenience of online and mobile banking apps, customers can easily access their accounts, make transactions, and even apply for loans or credit cards without leaving their homes. This has not only transformed the way customers interact with their banks, but also led to decreased foot traffic in physical branches.
While the closures of branches may seem concerning for some customers who prefer face-to-face interactions, banks are striving to provide alternative ways for customers to access their services. This includes expanding their online and mobile banking platforms, investing in customer service through virtual channels, and creating partnerships with third-party providers to offer innovative financial solutions.
However, it is important to note that the closure of branches does not mean the end of physical banking. Many customers still value the presence of physical branches for certain services, such as cash deposits, withdrawals, and face-to-face consultations. Banks understand this and are working towards finding the right balance between digital and physical banking to cater to the diverse needs of their customers.
In conclusion, the closure of over 60 branches in a single week by major banks highlights the industry’s shift towards digital banking. This trend is driven by the need to reduce costs and adapt to changing customer preferences. While the rise of digital banking offers convenience and efficiency, banks are also mindful of the importance of physical branches and are exploring ways to provide a seamless banking experience to all customers.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...