The big banks will not stop stopping the branches - this is why
The industry has experienced a large number of closures in recent years.
Retail closings have taken place in almost all industries since the start of the pandemic. And while many of these recent closures have been minor, as Walmart shutter a handful of locations, companies like Bed bathtub and beyond And Christmas tree shops Completely went bankrupt, carrying all their windows with them. From now on, large banks in the United States adopt an aggressive approach to closures, dozens of branches closing their doors for good. Is the industry in difficulty, or is there another reason why these brick and mortar locations disappear? Read more to find out why experts say that banks will not stop stopping the branches of any time.
In relation: 6 banks, including Wells Fargo and Bank of America, closing the branches this fall .
Several large banks are closing locations in 2023.
At least six different banks are closing branches in the United States this fall. This includes Wells Fargo, Bank of America, City National Bank, Chase, First Citizens Bank and Santander. The closures affect several states of the country: Wells Fargo closes the locations Virginia And New Mexico , while Bank of America abandons 12 locations in California .
This trend has been going on for years now. In 2021, CNBC indicated that the banks had closed a record number of branches that year, with Wells Fargo 267 closings At the top of the peloton.
In relation: Wells Fargo closes even more branches, from October 4 . AE0FCC31AE342FD3A1346EBB1F342FCB
Banking locations have in fact decreased for almost 15 years.
According to American banker , the last time Physical banking locations In fact, an increase in the United States was back in 2009. At that time, there were nearly 100,000 branches opened throughout the country. Now, the data of S&P Global Market Intelligence indicate that there are less than 80,000 American banker .
The pandemic only accelerated the decline in physical locations. S&P Global reported that American banks closed a net of 2,927 branches in 2021 - a record number of closures in one year. It was also a 38% increase in closures compared to 2020, which had set the previous record.
In relation: PNC Bank Farm 30 additional branches in 7 states .
Experts say that customer preferences have changed.
But why have large banks continued to reduce the workforce over the years? According to American banker , analysts believe that it is mainly the result of the investment of banks more in their online platforms, because customers now prefer to manage their digital banking transactions.
"The long -term trend in the reduction of branch numbers will continue while banks will adopt technology and mobile banking services". Jacob Thompson , the director general of Samco Capital Markets, told The Outlet.
Amy Amirault , The assistant vice-president of communications from Wells Fargo consumers, also confirmed this transition to "digital channels" in a previous declaration Better life . "As customer preferences and transaction models change, our branches too," she said.
Santander Bank also provided similar reasoning.
"Like many industries, the preferences of our customers have changed, with more customers choosing to banish with us online," said Santander in a previous statement Better life . "Consequently, we reinvent the experience of customers and employees by simplifying our processes, by refining our branch footprint and by increasing our investment in digital capacities to align with the evolutionary needs of our customers."
But people are always concerned about the decrease in branches.
Despite the transition to digital banking services, not all customers are comfortable with mass closings. In fact, a new investigation led by the Opinium research agency in name Daily mail have found that 51% of people in the United States say that they are either "very concerned" or "somewhat concerned" by the potential impact of the drop in branches.
"Despite the majority of Americans who prefer digital cash payment methods, recent banking closings in the United States are still in question", " Grace Miller , the Opinium research director, told the Daily mail . "In particular, the digital transition has disparities in accessibility, especially for Americans with lower household income."
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