Data Snack: US bank branch closures reach a new record high in 2021
- The number of US bank branch net closings rose by nearly 40% year-on-year to 2,927 branches in 2021.
- The pandemic pushed banks to reduce their footprint and focus more on their digital operations.
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US banks are closing down shop on main street as customers increasingly turn to more digital financial experiences, making physical branches less useful for financial institutions.
The number of US bank branch net closings rose by nearly 40% year-on-year to 2,927 branches in 2021, according to S&P Market Intelligence data. The number reflects around 4,000 branch closings, offset by around a thousand openings.
As the pandemic forced consumers to stay at home and interact with their financial providers mostly online, banks responded by reducing their branch footprints and focusing more on developing their digital operations.
Other factors contributing to this trend are industry consolidation and a low interest rate environment, which has pressured banks to tighten their expenses.
The net number of branch closures has been increasing over the past three years.
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