Seems like the new year is bringing new closures as a major US bank closes its doors. Between Thanksgiving of 2024 and the beginning of 2025, more than 100 bank locations have closed their doors. Keep reading to see if yours is on the list.
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Major US Bank Closes Amidst Bank Bloodbath
Last year was a bit of a blood bath between banks, as more than 1,000 locations had to close their doors. Now, it seems like that carnage is continuing into the 2025 year. The Daily Mail shares some of the major institutions that have been affected. Among the list are, "Wells Fargo, US Bank, PNC, and Bank of America."
There was a total of 113 planned closures, all which were announced between November 30 and January 11. Many critics assume the holiday timing prevented the banks from facing further scrutiny. Still, the closing of so many branches has sparked fear into their customer's hearts. Banks such as PNC closed 12 branches while Bank of America closed 10.
With multiple bank branches closing people want answers. Why are so many of these banks cutting back on their number of locations? Well, like the majority us inflation hit them as well. It is a struggle to handle rising rent and real estate prices as well as higher interest rates. Additionally, with the rise of mobile banking fewer and fewer people are traveling to physical locations.
The Future Of Banking
With these closures in locations and the rise of mobile banking, many people wonder what the future of banking will look like. Daily Mail shared that "new research recently revealed that the last physical bank branch could close in the US in 2041."
Experts determined that date by studying the rate at which banks are currently closing, which seems to be happening quite rapidly. The yearly average of bank closures is around 1,646 since 2018. Although mobile banking has its perks, I know I am not alone is still desiring the existence of physical locations. There are certain transactions or particular services that people still prefer to deal with a person over a machine.
Additionally, what about people who are older and unfamiliar with new and upcoming technology. Or people who do not have access to the necessary technology. Completely eradicating all physical locations would leave a lot of customers high and dry.
Research indicated that "Nearly two-thirds of Americans still use a physical branch to make cash deposits, while over half use them to speak to an in-person adviser, the report found."
With that much demand for physical locations still in play, I hope that US banks are figuring out a better approach. Although with major US banks closing over 100 locations, the odds are not looking good.
