Major U.S. banks such as Bank of America, Wells Fargo and Chase have closed more than 140 branches so far this year. This measure has generated uncertainty among citizens, especially those who depend on traditional banking. However, these actions respond to strategies previously planned and notified to the Office of the Comptroller of the Currency (OCC), and do not represent a financial crisis.
Reasons behind branch closures
Bank branch closures have become a growing trend in recent years, driven in large part by the digitization of financial services. More and more customers conduct transactions from their mobile devices or computers, which has reduced the need for physical branches. In addition, economic factors such as inflation and the rising cost of living have led several companies, including supermarkets such as Walmart, to close stores in different regions of the country.
Between February 7 and March 14, 2025, approximately 145 bank branches were closed. This trend is expected to continue in 2025, with an estimated 4.11% reduction in the total number of bank branches in the country.
Consequences for customers
While digitalization has made banking easier for many, the reduction of branches could affect specific sectors of the population.
- Seniors: Many seniors rely on physical branches for banking and may face difficulties adapting to digital platforms.
- People with low incomes or without access to technology: Lack of access to smart devices or the internet could create barriers to making transactions.
- Cash users: In the U.S., more than 200 million people still rely on cash, so closures could prolong wait times at ATMs or hinder the availability of face-to-face banking services.
The future of banking in the United States
While the closures may create discomfort, it is not a collapse of the banking system. In fact, financial institutions plan to continue their expansion by opening new branches in strategic locations, in addition to strengthening their online services. However, experts warn that the decline in branches could change the way customers interact with their banks and affect the user experience in terms of access and waiting times.
Darren Kingman, a digital marketing expert, points out that reliance on physical bank branches has decreased considerably since 1995 and that this trend will continue in the future. However, a balance is required so as not to leave out the most vulnerable sectors of the population that still need face-to-face care.
Concluding remarks
The transformation of the U.S. banking sector is a reflection of technological advancement and new consumer preferences. While mass branch closures may raise concerns among certain groups, the growth of digital services also brings new opportunities. It is critical that banks balance innovation with financial inclusion to ensure that all customers can seamlessly access the services they need.
