Across the United States, numerous bank branches have been closing, leaving many customers puzzled about the reasons behind these massive closures.
Bank of America, one of the country’s largest banks, has notably led this trend, closing more branches than other major banks in recent years. The trend continues as rumors suggest more closures on the horizon, affecting several states, including Illinois, New Jersey, California, and Wisconsin.
The Office of the Comptroller of the Currency (OCC) reported that over 400 branches have closed nationwide since January 2024. Banks are required to notify the OCC at least 90 days before closing a branch, and the OCC also oversees the opening of new branches.
Steven Reider, founder and president of Bancography, noted that banks, including Bank of America, are willing to close branches that do not overlap with others, hoping that customers will walk a bit farther to reach the next closest branch. He believes Bank of America has pursued this strategy more aggressively than other big banks.
Recent Bank of America Branch Closures
The OCC recently announced that Bank of America would close eight more branches between July 9 and July 16. The table below provides details on these closures:
| Bank of America Branch Closures (July 9–July 16) | City | State | Location |
|---|---|---|---|
| KEARNY | Kearny | NJ | 240 Kearny Avenue |
| WILDWOOD | Wildwood | MO | 2412 Taylor Road |
| STOCKTON | Stockton | CA | 10834 Trinity Parkway |
| ANTHEM | Anthem | AZ | 39518 North Gavilan Peak Parkway |
| PALOS HEIGHTS | Palos Heights | IL | 12145 South Harlem Avenue |
| ALBANY | Albany | NY | 1450 Western Avenue |
| TULALIP | Tulalip | WA | 8815 Quil Ceda Boulevard |
| MEMPHIS | Memphis | TN | 2731 Union Ave Extended |
Reider also explained that some closures are due to Bank of America’s strategy of merging multiple branches, especially in rural areas where branches might be underutilized and not cost-effective.
Online Banking Trends and Branch Closures
Since 2010, bank branch closures have been a growing trend, significantly accelerated by the Covid-19 pandemic. This shift is largely due to the increasing reliance on digital banking services. Regions such as California and the Midwest have been particularly affected. The following trends illustrate the transformation in the banking industry:
Tailored Financial Services
Banks now leverage data analytics to offer personalized financial services, including tailored product recommendations, budgeting tools, and financial advice, meeting the unique needs of each customer.
Enhanced Mobile Banking Experience
With the rising importance of mobile devices, banks are prioritizing user-friendly mobile applications featuring bill payment, money transfers, mobile deposits, and investment management.
Stricter Security Measures
To protect user data and prevent cyber-attacks, online banking now employs robust security measures such as biometric identification and multi-factor authentication.
Growth of Contactless Payments
Contactless payment methods, such as mobile wallets and digital tokens, are becoming increasingly popular. Banks are promoting these technologies through their mobile banking applications as a secure and convenient way to pay for goods and services.
These closures and digital trends reflect the broader shift in the banking industry towards more efficient and technologically advanced services. While the physical presence of banks is diminishing, their digital footprint is expanding, offering customers enhanced, secure, and convenient banking experiences.
FAQs:
Why are so many bank branches closing?
Bank branches are closing primarily due to the increased use of online and mobile banking, which reduces the need for physical locations. The pandemic further accelerated this trend as more customers turned to digital services.
Which states are most affected by bank closures?
States such as California, Illinois, New Jersey, and Wisconsin have seen significant branch closures recently.
How does Bank of America decide which branches to close?
Bank of America tends to close branches that do not overlap with other locations, aiming to consolidate services and encourage customers to use nearby branches or digital banking options.
What are the security measures for online banking?
Online banking security measures include biometric identification, multi-factor authentication, and advanced encryption to protect user data and prevent cyber-attacks.
