There has been an increase in bank branches closing since the pandemic disrupted how people go about their daily lives. Amid the rise of online banking and mergers in the industry, there are half as many financial institutions as there were two decades ago.
“We continuously evaluate our branch network in light of changing customer needs,” said Wells Fargo as the impact of online banking on local financial institutions continues to take effect. This change, something that is being felt across other developed countries, is seeing bank branches close throughout the United States, and in recent days further announcements have been made by several financial institutions.
Why are banks closing in the US?
The reason for more and more bank doors to be closed is simple enough. As foot traffic has reduced over the years so too has the need to invest in staff and brick-and-mortar locations to service the public’s financial needs, instead switching that investment into digital support.
“Like many industries, our customers’ preferences have changed, with more customers choosing to bank with us online,” Santander said in a statement to customers. “Therefore, we are reimagining the customer and employee experience by simplifying our processes, refining our branch footprint, and increasing our investment in digital capabilities to align with the evolving needs of our customers.”
In 1980, Bank One developed an early version of home banking that allowed customers to pay bills and view their account and department store balances on a television screen. Today, the Chase Mobile app® helps you pay bills, check your credit score, and automate savings. pic.twitter.com/cgmWVEv0Gy