In the first three trimesters of this year, over 700 bank branches across the country have shut down, making it more difficult for thousands of customers to access essential banking services. Bank of America led the trend, closing 132 of its locations between January and September, more than any other institution. Other major banks followed suit, including Wells Fargo with 92 closures, Chase with 90, and TD Bank with 52 closures within the same timeframe.

In addition to these large-scale closures, several other smaller institutions contributed to the overall reduction in physical locations. These include PNC, Citizens Bank, Woodforest, Fulton, and Capitol One, though their individual closure numbers were smaller in comparison to the larger banks. States that saw particularly high numbers of closures include New York, which lost 64 branches in 2024, and others like Pennsylvania, Texas, Ohio, Florida, and New Jersey, all of which saw between 41 and 47 closures during this period.

If bank branch closures continue at their current pace, projections suggest that over 1,000 branches will have been shuttered by the end of this year alone and looking further ahead, recent research has indicated that the last physical bank branches in the U.S. could close as soon as 2041, assuming the current trend continues, although there is nothing that clearly indicates that all banking services will truly be moved online. This forecast is based on an analysis by Self Financial, which calculated the average rate of net closures at 1,646 branches per year since 2018.

Reasons why bank branches closures have become so common

One reason for the high number of closures is a trend among banks to consolidate branches, often merging two local offices into one larger facility. A representative from Bank of America explained that many of their closures are part of this consolidation strategy. “Our financial center network is core to our business and gives us a strategic advantage,” the spokesperson noted. They also added that the bank had opened over 40 new financial centers nationwide in 2024, and that branch locations are regularly adjusted based on foot traffic and customer needs. Most of the closures this year, they clarified, were the result of merging nearby branches or relocating branches to more suitable locations.

Despite the increasing reliance on digital banking, physical branches still play a crucial role for many customers, especially for certain services that are difficult to access online. While a large portion of Americans now handle the majority of their banking through digital platforms, many still visit branches for specific needs. A report revealed that nearly two-thirds of U.S. adults continue to use bank branches for cash deposits, while over half prefer in-person interactions with bank advisers. This is particularly true for older customers who may find it challenging to navigate mobile banking tools. In fact, 39 percent of respondents in a recent survey indicated that they place more trust in banks with physical branches compared to those operating solely online.

This shift in customer preferences toward online banking is acknowledged by many of the banks involved in these closures. A U.S. Bank spokesperson commented on the evolving banking habits of their clients, emphasizing that “clients’ banking preferences and behaviors are changing, including a rapid migration toward digital and mobile banking platforms, and a desire for greater simplicity.” As a result, the bank is reassessing its physical footprint, consolidating certain branches, and enhancing its digital offerings. While some locations are closing, U.S. Bank is still investing in opening new branches and upgrading others.

The financial savings associated with closing branches is another significant factor driving this trend. On average, it costs around $2.6 million per year to maintain a freestanding branch, making consolidation and closures an attractive cost-cutting measure for many institutions. Banks are required to report their plans for branch openings and closures to the Office of the Comptroller of the Currency (OCC), the federal regulator that oversees national banks, which publishes a weekly summary of these activities.

Wells Fargo, another major player in branch closures, echoed sentiments similar to those of Bank of America and U.S. Bank. A Wells Fargo spokesperson pointed out that while the bank is optimizing its branch network, physical locations remain an important component of their overall service strategy, alongside their digital platforms and ATMs. The spokesperson further emphasized that Wells Fargo is investing in both opening new branches and refurbishing existing ones, while striving to minimize the impact of closures on customers and communities.