NEW YORK—The nation’s biggest banks closed 222 branches in the first two months of 2024, according to a new report that also cites the growth of credit union branches.
The closures have been led by Bank of America, US Bank and Citizens, which collectively accounted for nearly half of all the closures - 92 over eight weeks, according to the Daily Mail, which noted that if banks continue at the current rate some 1,300 will close this year.
“The closures, reported to federal regulator the Office of the Comptroller of the Currency (OCC) in January and February, are reflective of a broader trend,” the Daily Mail reported.
Confidence in Online Channel
The Daily Mail quoted Steven Reider, founder and president of Bandography in Alabama, as saying banks are growing increasingly confident in the capabilities of online banking.
“That confidence can lead to significant savings since the average freestanding bank branch costs around $2.6 million a year,” the Daily Mail stated. “In just two months, Bank of America's 41 closures might have saved it almost $100 million.”
Reider told the publication, “Banks are willing to close a branch that isn't really overlapping any other branch on the gamble that customers are willing to drive a little bit further. I think Bank of America has leaned into that more than the other large banks have,” he added.
It closed 157 branches last year but opened only 34.
Credit Union Growth Cited
While banks are closing branches, the Daily Mail noted credit unions are “playing a more significant role than ever before - offering very similar services to traditional banks and eating up a share of the market. Unlike banks, their footprint is expanding and they now account for around 18,000 branches across the U.S.”
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