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Major US Banks Closed 42 Branches in Just Two Weeks
Daily Mail
September 9, 2024
Major banks have shuttered more than 40 locations in just two weeks as the local branch bloodbath continues.
Chase, Wells Fargo and Santander were among the banks who closed locations between August 4 and August 18.
Bank of America led they way, notifying the regulator that they would be removing 12 of their local branches from use.
Wells Fargo followed closely by closing eight of its locations, while the rest were shut by Fulton Bank, Chase, First National Bank of Long Island, Flagstar, Moody, Santander and Zions Bancorporation.
The closures, which spanned from California to New Jersey, were confirmed to the Office of the Comptroller of the Currency (OCC) which monitors branch closures and openings and publishes them in a weekly bulletin.
Major banks are increasingly moving away from expensive brick-and-mortar branches in favor of online services.
'Survey data continues to show that online banking is quickly becoming the standard for how people bank,' Lead Data Content Researcher at GoBankingRates, Andrew Murray, told DailyMail.com following the latest figures.
'Most Americans find it more convenient than having to go into a bank on a lunch hour or early in the weekends, and as more adults who grew up with smartphones enter the market, its popularity will continue to grow,' Murray explained.
A recent GoBankingRates survey found that nearly 70 percent of customer between 25 and 34 preferred to do their banking online rather than in branch.
Researchers found that even seniors prefer online banking to in-branch services.
Experts advise those switching to online services to take advantage of bank's support services offered to help with the transition.
'Even though mobile banking is considered more of a self-service style, features like online chat support are frequently offered to assist you if you need help,' Jessica Morgan, financial expert and founder of Canadian Budget said.
Morgan said that online banking can help consumers save money as many online-only banks offer lower or even no fees at all, and can offer higher interest rates on savings since they do not have the same overhead costs of running bricks-and-mortar branches.
'Most new online banks must work harder to compete for your business, frequently offering low to no fees, unlimited transactions and higher interest rates. Using a bank you access from your phone can save you up to a few hundred dollars a year in account fees,' she explained.
Indeed closures can lead to significant savings for traditional banks since the average freestanding bank branch costs around $2.6 million a year to run.
US banks shut 539 branches in just the first half of the year, research by DailyMail.com shows.
The worst hit state was California, which saw 72 closures. New York was second with 51 closures, followed by Pennsylvania at 40.
'Over the last several years, we have rightsized our branch network, and we may continue to combine two older existing branches into one better situated location,' Wells Fargo told DailyMail.com.
'Doing so does not take away the importance of our customers and the communities we serve.'
US bank also highlighted clients' migration towards online banking and 'desire for greater simplicity' as reasons for their mass closures.
'As we evolve along with our clients, we are reevaluating our physical footprint, and in some instances, consolidating branch locations in select markets,' the bank said in a statement earlier this year.
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