Big banks are closing down physical locations at a rapid pace. In just six weeks, between Thanksgiving 2024 and January 11th, 113 bank branches were shut down.
Who’s Closing Branches?
Several major players were involved in this wave of closures, including:
- Wells Fargo
- Bank of America
- JPMorgan Chase
- US Bank
- PNC Bank
UMB Bank, a regional bank, also closed 28 branches, though they disputed the exact number reported. Other notable closures included 15 branches by Flagstar Bank.
The Bigger Picture: A Dying Breed?
This isn’t a new trend. Bank of America closed 132 branches in 2024 alone, with similar numbers for other major banks (US Bank – 101, Wells Fargo – 92, Chase – 90). California saw the most closures.
According to data analysis, the number of bank branches in the US peaked in 2012 and has been declining steadily ever since. If this trend continues, some analysts predict that all bank branches could disappear by 2041. Some states, particularly in New England, might even be completely branchless by 2031.
The Future is Branchless?
The shift away from physical branches reflects a broader trend towards digital banking. While convenient for many, the closure of these branches could disproportionately affect communities that rely on in-person banking services.
