Keeping an empty building open is expensive. And with more online and app options, it might not always make sense to have a physical place to shop.
That is especially true of banks, where you can do everything from opening an account to depositing a check with a simple swipe of a button.
Still, Americans like to have a bank branch to go into when they can’t resolve issues online, with 65% seeing them as symbols of stability, according to a study from Accenture.
But clients of this one bank might find they need to drive further to reach their nearest branch.
This bank’s branch count is shrinking
With fewer customers going to physical branches, banks are responding by closing and consolidating branches. There was a 19% decline in bank branches between 2014 and 2024, according to a study from the Federal Reserve.
But even when branches decreased, it didn’t always result in a huge decrease in access to a branch, the same study found.
Even so, the change in consumer habits is causing banks to rethink how branches are designed, TheStreet reported.
Bank of America is one of the latest banks to announce several branch closings.
Bank of America branches that are closing
- 6727 North Davis Highway, Pensacola, Florida
- 6023 Spring Hill Drive, Spring Hill, Florida
- 985 Pasadena Avenue South, South Pasadena, Florida
- 1001 SW 5th Avenue, Portland, Oregon
- 10101 SW Washington Square Road, Portland, Oregon
- 20 Ranch Road, Milpitas, California
- 1705 West 18th Street, Chicago, Illinois
Since the start of the year, Bank of America has closed 13 branches, according to data from the Office of the Comptroller of the Currency.
It still has a lot of branches, as it’s one of the largest banks in the U.S. According to Bank of America, it has 3,500 financial centers and 15,000 ATMs across the U.S.
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Bank branches are declining nationwide
Bank branches weren’t always in decline. At one point, there were over 86,000 branches across the U.S.
Now there are only 69,167 branches, according to the FDIC.
Although the number of bank branch closures have slowed since they hit a record decline during Covid, there are still many banking deserts in the U.S., according to the National Community Reinvestment Coalition.
More bank news
- 198-year-old bank is losing customers for controversial reason
- 136-year-old bank expands its foothold to $18 billion
- 150-year-old bank announces branch closures
Over all, banking access has declined across communities, with the biggest impact being felt by lower-income households, the coalition report found.
“Fewer branches create smaller geographic areas where banks must demonstrate community development activity. This is a particularly concerning development given the documented network contraction,” the National Community Reinvestment Coalition report states.
Related: This major bank is going on a branch-opening spree
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