Banks shutting 40+ branches in a week How does it impact you?

In a week, several banks in the US have closed a total of more than 40 branches, as more clients opt for the convenience of online banking. PNC Bank announced the closure of 19 of its branches, while US Bank and Bank of America each closed nine and eight branches, respectively.

The closure of bank branches can have several implications for customers, including limited access to traditional banking services. The number of banking institutions has declined significantly since the early 1980s, resulting in an increase in “bank deserts” where access to financial services is limited or nonexistent. This particularly affects low- to moderate-income neighborhoods and communities with minority populations.

Customers who relied on these branches now have to travel greater distances, sometimes crossing state lines, to access physical banking services. This increase in travel time and expenses can be particularly burdensome for vulnerable portions of the population.

The trend of bank closures is not new, but it has been accelerated by the shift towards digital banking. As more customers choose online banking, traditional branches become less profitable for banks, leading to closures. However, the closure of branches can have unintended consequences on communities that rely on physical banking services.