In October, the trend of bank branch closures showed no signs of slowing down, with 35 more branches shuttered across the U.S. in just one week. Leading these closures, U.S. Bank shut down 11 locations, while Wells Fargo and Bank of America each closed six, and PNC Bank followed with five. Smaller-scale closures included branches from Beverly Bank, Citizens Bank, Fidelity Bank, First National Bank of Omaha, Flagstar, and Chase.
California was notably impacted, losing nine branches in the week alone. This comes on top of the 86 closures the state had seen through the first three quarters of 2023. The shift reflects a broad strategy by banks to meet changing customer habits by reducing physical branch locations while increasing digital service offerings.
Reasons Behind Closures
A spokesperson for U.S. Bank explained the reasons for these closures, stating that customer preferences are shifting toward digital and mobile banking. In response, U.S. Bank, along with others, is reevaluating its branch footprint to align with these evolving habits. However, they assured that some physical locations would continue to be enhanced, and digital service capacities would be rapidly expanded.
The banking industry as a whole is adapting to a landscape where more transactions are handled online, driving a move to streamline operations and reduce the number of physical branches. However, while these changes may meet the needs of tech-savvy customers, they pose challenges for others, especially older customers who may struggle with digital platforms or require in-person assistance for specific transactions.
Customer Sentiment
Despite these shifts, a significant portion of customers still prefers access to physical branches. According to a survey conducted by Self Financial, 39% of respondents reported a higher level of trust in banks with physical locations over purely digital institutions. Additionally, nearly two-thirds of Americans still use branches for cash deposits, and over half rely on them for in-person financial guidance. This indicates that while digital banking is growing, the need for in-person services has not disappeared entirely.
Recent Closures
Below is a summary of the bank branches closed across various states in the week from October 15 to October 22, showing a mix of large national banks and regional institutions adjusting their physical footprints:
| Bank | City | Location |
|---|---|---|
| Bank of America | Oceanside, CA | 702 Mission Ave |
| Bank of America | Fort Myers, FL | 8681 Cypress Lake Drive |
| Bank of America | Ormond Beach, FL | 902 South Atlantic Avenue |
| Bank of America | Tampa, FL | 2700 West Dr. Martin L. King Jr. Blvd |
| Bank of America | Nashville, TN | 969 South Gallatin Road |
| Bank of America | Hendersonville, TN | 451 West Main Street |
| Beverly Bank & Tr Co | Chicago, IL | 1908 West 103rd Street |
| Citizens Bank | Philadelphia, PA | 8345 Ridge Avenue |
| Fidelity Bank | Tulsa, OK | 2222 S. Utica Place |
| First NB of Omaha | Bayard, NE | 302 Main Street |
| Flagstar Bank | Jericho, NY | 336 North Broadway |
| JPMorgan Chase Bank | Las Vegas, NV | 1340 East Flamingo Rd |
| JPMorgan Chase Bank | Houston, TX | 4335 Martin Luther King Blvd., Ste B |
| PNC Bank | Albuquerque, NM | 2444 Louisiana Blvd Ne |
| PNC Bank | Bakersfield, CA | 8500 Stockdale Hwy Ste 100 |
| PNC Bank | Albuquerque, NM | 3500 Candelaria Rd Ne |
| PNC Bank | Napoleon, OH | 701 N Perry St |
| PNC Bank | Napoleon, OH | 801 N Perry St |
| U.S. Bank | Cobden, IL | 118 S Front St |
| U.S. Bank | Cambridge, OH | 819 Wheeling Avenue |
| U.S. Bank | Blair, NE | 1865 Washington St |
| U.S. Bank | Hopkinsville, KY | 1101 S Main Street |
| U.S. Bank | Pleasanton, CA | 6774 Bernal Avenue, Suite 310 |
| U.S. Bank | Wahpeton, ND | 502 Second Avenue North |
| U.S. Bank | Maquoketa, IA | W Platt & Mckinsey Dr |
| U.S. Bank | San Francisco, CA | 3473 California Street |
| U.S. Bank | Mill Valley, CA | 453 Miller Avenue |
| U.S. Bank | Humboldt, IA | 701 Sumner Ave |
| U.S. Bank | Hayward, CA | 27000 Hesperian Boulevard |
| Wells Fargo Bank | Pasadena, CA | 655 North Fair Oaks Avenue |
| Wells Fargo Bank | Pleasanton, CA | 5798 Stoneridge Mall Road |
| Wells Fargo Bank | Dallas, TX | 5809 E. Lovers Lane |
| Wells Fargo Bank | Hickory, NC | 200 First Ave. Nw |
| Wells Fargo Bank | El Paso, TX | 221 N. Kansas Street |
| Wells Fargo Bank | North Highlands, CA | 7477 Watt Avenue |
Impact on Local Communities
The growing number of closures is part of a strategic pivot by banks, but it affects communities that rely on in-person banking. Many rural areas and small towns where digital banking adoption is slower are losing access to essential financial services. Without nearby branches, residents in these areas may face challenges, from limited access to cash deposits to difficulties seeking financial advice.
For now, while banks are enhancing their digital services, a substantial number of customers still rely on branches, demonstrating that physical banking has a role that online platforms can’t entirely replace.
FAQs
Why are banks closing branches?
To meet rising demand for digital banking services.
Which bank closed the most branches recently?
U.S. Bank closed 11 branches in a week.
How many branches did Wells Fargo close in October?
Wells Fargo closed six branches from Oct 15 to Oct 22.
Are physical branches still important?
Yes, many customers still prefer in-person services.
Which state had the most closures recently?
California, with nine branch closures in one week.
