NEW YORK—Big banks have been closing branches in lower-income areas and shifting more of their attention to wealthier ones, according to a new report.
Overall, there's been a trend among the biggest banks-specifically J.P. Morgan Chase, Wells Fargo, and Bank of America-to reduce their branch networks, reported Fortune, citing Bloomberg data.
“Relying on ATMs and online banking is less expensive. According to S&P Global data, banks have shut 1,915 more branches in lower-income areas than they opened between 2014 and 2018, with J.P. Morgan, Wells Fargo, and Bank of America at the front of the trend,” said Fortune.
There are broad implications for neighborhoods when branches close, Fortune reported. Less competition means fewer choices for banking services and, potentially, higher costs as a result.