Which banks have closed a total of more than 40 branches in a week in the US and how can it affect you?
Banks continue to close some branches as more clients choose to make transactions online. Which institutions have shuttered dozens of locations in one week?
Banks have been closing locations across the country, as more of their clients opt for the convenience of online banking. In just one week several institutions shuttered dozens of their branches combined, leaving thousands with no easy access to cash.
These include PNC Bank, which said it would shutter ten branches in six states; US Bank, which was set to shut down nine locations; Bank of America, which stated it would close eight; Capital One, which notified the Office of the Comptroller of the Currency that they have scheduled a total of six closures.
How can bank closures affect you?
With less bank branches operating in the US, there are fewer opportunities for customers to do their banking in a physical location. A report by the National Community Reinvestment Coalition indicates that the presence of banking institutions has declined since the early 1980s, when the number was 18,000, to less than 5,000 in 2021.
Because of this development, there has been an increase in so-called “bank deserts”, a term which refers to an area or community that has limited or no access to traditional banking services. In a bank desert, residents may face challenges in accessing essential financial services such as savings accounts, checking accounts, loans, and other banking products.
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Branch closures: Inconvenient and more costly
Customers now have to travel greater distances, sometimes needing to cross state lines if they want to make transactions at a brick-and-mortar bank. This costs them more travel time and expenses.
Although branches are being closed down all throughout the country, vulnerable portions of the population are feeling the effects more acutely.
According to the same study, one-third of the shuttered bank locations from 2017 to 2021 could be found in low- to moderate-income neighborhoods and/or areas where the majority of the residents belong to minority groups. This makes it even harder for these segments of the population to access financial services.