Major US banks close branches at ‘alarming rate’
Major US banks are closing their branches at an “alarming rate” amid a push toward all-digital banking.
Over 33 locations were shuttered within just two weeks during July, reported the Daily Mail, including 11 by Bank of America, seven by Chase, and seven by PNC. Wells Fargo, Axiom Bank, Dollar Bank, Citizens, Capitol, Zions Bancorporation, and Lemont made up the remainder.
Most bank closures this year have occurred in California (72), followed by New York (51), and Pennsylvania (40). Bank of America alone has shut down 100 locations in 2024 so far, saying customers are making increasing use of digital services.
“These shifts in our branch network reflect that, more and more, our clients are using digital banking for their everyday financial needs and coming into financial centers for more significant needs or to have conversations about their finances,” said a Bank of America spokesperson.
The bank’s closures comprised an estimated 25% of shutdowns this year, including at least 88 by Wells Fargo, reported the Wall Street Journal. Last year, 2,454 bank branches closed, leaving the US with 80% less locations than it had in 2009.
A decline in cash
It is unclear if the closures are causing a decline in cash use or vice-versa, but an increasing number of Americans believe a cashless society in the near future is likely.
According to industry figures, most Americans (63.9%) expect a cashless future. This is unsurprising considering that almost half of American adults (47.8%) do not use cash in a typical week, with 69% saying they used cash for few, if any, purchases in the last 12 months.
Over 87% of point-of-sale transactions in the United States are cashless, a number expected to increase another six percent by 2026.
The digital banking overhaul is occurring globally, with world leaders calling for an end to cash use. These calls have faced strong criticism from some who believe a cashless society will allow governments to gain unprecedented control over taxpayers’ money.
Brexit mastermind and British MP Nigel Farage in September slammed European Commission President Ursula von der Leyen, who called for a global switch to digital currencies and a cashless society.
"If we're not careful, we head towards a Chinese-style social credit system, where unless you go along with the views of the day, you become a non-person,” Farage told Fox News. "I cannot think of a more dangerous initiative than this."
