Four major banks across the country are closing 55 branches as financial institutions move away from brick-and-mortar branches to focus on online banking. “Survey data continues to show that online banking is quickly becoming the standard for how people bank,” Lead Data Content Researcher at GoBankingRates, Andrew Murray, told DailyMail.com. “Most Americans find it more convenient than having to go into a bank on a lunch hour or early in the weekends, and as more adults who grew up with smartphones enter the market, its popularity will continue to grow.” Here’s what you need to know.
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1. Wells Fargo
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Wells Fargo is closing several branches across the country. “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,” Wells Fargo told DailyMail.com.
2. Chase
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Chase is also shutting down several brick-and-mortar locations. “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,” says Self Financial. “Connecticut, Maine and Vermont are all predicted, based on our research, to be branchless by 2031.”
3. Bank of America
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Bank of America closed 30 branches over the past five years in Connecticut alone. “We are super committed to Connecticut,” said Bill Tommins, Bank of America’s president for southern Connecticut. “We’re growing our head count, we’re actively growing our various lines of business, and we’re focused on market share growth. And we’re here to stay.
4. Fulton
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Fulton Bank is closing 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 for Fulton Bank told 6abc Philadelphia.
Branches Extinct By 2041
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According to finance and credit-building company Self Financial, Federal Deposit Insurance Corporation (FDIC) data suggests bank branches may be completely obsolete by 2041 if current trends continue. “Looking at the number of bank branches in 2022, 2012, and 2002, California has seen the highest level of bank closures of any state, with 1,080 branches now closed in the last ten years, followed by Florida (-1,056 closures) and Illinois (-823).”
Better Deals Online
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Branches with no brick and mortar locations can offer more competitive rates. “Even though mobile banking is considered more of a self-service style, features like online chat support are frequently offered to assist you if you need help,” Jessica Morgan, financial expert and founder of Canadian Budget, told DailyMail.com. “Most new online banks must work harder to compete for your business, frequently offering low to no fees, unlimited transactions and higher interest rates. Using a bank you access from your phone can save you up to a few hundred dollars a year in account fees.”