Across the US, a total of 42 banks have shut locations around the country, bringing the total to 272 in the first quarter.
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Multiple different banking companies have shut up their locations, including giants Chase, Bank of America, and U.S. Bank. The other banking companies affected are Flagstar Bank, Citizens Bank, Cumberland Valley, Fifth Third Bank, FSNB, KeyBank, Pacific Premier Bank, PNC, Warsaw FS, Wells Fargo and Zions Bancorporation.
The most banks closed in the last month were owned by Flagstar. They shut a total of 16 branches in April. However, Bank of America, which shut the most last year, followed close behind with a total of nine. These closures come amid a declining need for branches as the US moves toward a cashless society.
Why Are So Many US Banks Closing?
The closure of so many bank branches in the US is an inevitable change in the way we handle money as a society. More people than ever are moving to a cashless option, paying for everything with card and contactless. This creates less of a demand for physical outlets, which were primarily used for withdrawals and deposits.
Bankrate's chief financial analyst Greg McBride spoke to the Daily Mail about the bank closures across the US. "Industry consolidation — both in the number of banks and branches — is a long-standing trend that will continue, especially as more transactions move online."
However, he noted that although financially it makes sense for the banks to close their locations, there will still be an impact on many people who rely on open branches. "Consumers and small businesses in rural areas are the most impacted, particularly business owners that must make a daily bank run to deposit cash or consumers that lack viable transportation."
Around 200 million Americans still deposit cash. This will lead to much longer lines and waiting times in the few remaining branches. Many people will also have to travel further to do so. As a society, the US is moving to an online model. However, a recent study by gobankingrates showed that many still prefer in-person banking. In fact, the numbers were surprisingly high. Around 45 percent of Americans still prefer in-person banking.
