CHARLOTTE, N.C.–More than 320 U.S. bank branches were marked for closure in the first quarter of 2025, with institutions like Flagstar, TD Bank, Wells Fargo and Bank of America continuing to downsize, a new report has found.
The increase in closures is the result of changing shifts in banking behavior, noted Newsweek, pointing to one study that found while more than 200 million Americans still make transactions in branches, the use of mobile apps and online banking is rapidly expanding.
According to filings with the Office of the Comptroller of the Currency (OCC), U.S. Bank was among the leaders in the latest wave of closures, with some 40 locations set to shut down.
Other major banks announcing they would be shuttering branches included Wells Fargo with 49, and Flagstar with 52, the OCC data show.
Lower Foot Traffic
“Recent data from Statista indicates a continued decline in foot traffic at U.S. bank branches, driven by the growing adoption of digital banking services. In the fourth quarter of 2024, 45% of U.S. bank account holders reported conducting activities in person at a branch, a decrease from 53% in the first half of 2019,” Newsweek reported. “Generational differences also influence branch visitation patterns. A study by Rivel Banking Research found that Generation Zers visited bank branches an average of 3.6 times per year, while baby boomers averaged 4.6 visits annually. Overall, 52% of U.S. consumers visited a bank branch up to four times in the past year.”
‘Significant Barriers’
Newsweek noted that for consumers, especially older adults, those with limited internet access or people in rural communities, these closures pose significant barriers, as “in-person banking remains essential for many, and longer distances to branches could mean reduced access to financial services, longer wait times and a higher risk of financial exclusion.”
As the CU Daily just reported here https://thecudaily.com/deserts-in-north-carolina-yes-say-proponents-as-house-passes-bill/ the North Carolina House of Representatives has passed House Bill 187, a credit union-advocated measure that its supporters say will expand financial service options in areas facing severe bank branch closures, areas that are often referred to as banking deserts.
One Bank Responds
A Wells Fargo spokesperson told Newsweek: “Branches continue to play an important role in the way we serve our customers in combination with our mobile app, online website, and ATMs. We are actively investing in our branch network by opening new locations and refurbishing our entire network.
“As we optimize our branch network, we are focused on evolving our branch presence based on customer usage and the changing traffic patterns and retail landscape to best meet the banking needs of each community we serve.”
