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.

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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.