January 1, Bank Branches Shutting Down as Major Banks Shift to Online Services

Four major banks across the country are shutting down 55 branches as they shift their focus from traditional brick-and-mortar banking to online services. “Survey data continues to show that online banking is quickly becoming the standard for how people bank,” said Andrew Murray, Lead Data Content Researcher at GoBankingRates. This move comes as more Americans find it convenient to bank online rather than visit a branch during inconvenient hours.

Wells Fargo announced plans to close several branches nationwide. “Over the last several years, we have rightsized our branch network, and we may continue to combine two older existing branches into one better situated location,” the bank stated.

Chase is also reducing its physical footprint. “Based on the average closure rate for the last ten years for each area, using the same polynomial regression model, the states that are going to see the fastest level of all bank branches closing are predominantly based in New England,” said Self Financial. “Connecticut, Maine, and Vermont could be branchless by 2031.”

Bank of America has closed 30 branches in Connecticut over the past five years. Despite this, Bill Tommins, Bank of America’s president for southern Connecticut, said, “We are super committed to Connecticut. We’re growing our head count, actively expanding our various lines of business, and are focused on market share growth. And we’re here to stay.”

Fulton Bank is also shuttering branches across the country. “While it’s never easy to close one of our financial centers, it’s sometimes necessary after we evaluate factors including overlapping service areas and trends in how customers conduct their banking,” a spokesperson informed.

The Federal Deposit Insurance Corporation (FDIC) data paints a stark picture: bank branches might become a thing of the past by 2041 if this trend continues. California has seen the highest number of bank closures, with 1,080 branches shuttered in the last ten years, followed by Florida with 1,056 closures and Illinois with 823.

With no physical locations, these online banks often offer more competitive rates. Jessica Morgan, financial expert and founder of Canadian Budget, noted that online banking frequently provides lower fees, unlimited transactions, and higher interest rates. This shift saves customers up to several hundred dollars a year in fees.

What does this mean for American consumers? The banking landscape is rapidly changing, and traditional institutions are now offering fewer services in-person. Is this convenience worth the cost of losing access to local branches? As always, the big financial giants seem to prioritize efficiency and profit over personalized service.

As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.

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