2023’s past and upcoming closures may predict long-term trends.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: CNBC.com, WFMZ.com, and SPGlobal.com.
Per a January 21st, 2022 report from CNBC.com, “U.S. Banks Close Record Number of Retail Branches in 2021, Wells Fargo Shutters Most,” some analysts believe the current state of U.S. banks may determine potential record-breaking closures moving forward.
From the January 21st report: U.S. banks closed a record number of retail branches in 2021 as customers increasingly turn to digital banking and the industry consolidates. On net, U.S. banks shuttered 2,927 branches last year, according to S&P Global Market Intelligence data. Banks closed nearly 4,000 branches and opened more than 1,000 branches, the analysis found.
On a related matter, according to a March 19th report from WFMZ.com, entitled “Another Branch Bites the Dust: Wells Fargo to Close West Tilghman Street Location,” the popularity of digital banking is acknowledged as a factor in this regard.
As excerpted from the report: And another branch bites the dust, as digital banking gains popularity over bricks-and-mortar offices. This time, it's Wells Fargo's South Parkland branch at 4797 W. Tilghman St. in South Whitehall Township. Banks are closing branches across the U.S. as customers choose mobile banking, electronic payments and direct deposits over going to an office.
Incidentally, Wells Fargo previously announced that its Rodgers Street and Easton Avenue branch in Bethlehem will also close June 7.
Let us explore further.
U.S Banks, 2023
According to a report from SPGlobal.com, entitled “US Bank Branch Closure Activity Slows Further in January,” recent closures have — for now — slowed from 2022 highs.
From SPGlobal.com: U.S. banks closed 95 branches and opened 46 in January, bringing the total number of active branches to 78,806, according to S&P Global Market Intelligence data. Net closures in the month were 49, down from 76 in December 2022 and significantly lower than the trailing-12-month average of 161 net closures per month. Branch closures have slowed with banks becoming more balanced between shuttering locations and stressing digital adoption in order to be competitive.
The report addresses specific January, 2023 closures:
- PNC closed 21 branches and opened three.
- Huntington Bancshares closed 17 branches and did not open any new locations.
- Wells Fargo closed 12 branches and did not open any new locations.
- U.S. Bancorp (USB) closed 7 branches and opened no new locations.
- Citizens Financial Group closed 5 branches and opened no new locations.
For a full list, click on the SPGlobal.com link above.
As a targeted Google search will verify, dozens of smaller banks have also been announced this year as permanently closing.
For now, however, any derived conclusions for the remainder of 2023 are purely speculative.
This is a developing story. In the event of pertinent updates to this matter, inclusive of news as to other closures and official announcements of milestone dates thereof, I will share them here on NewsBreak.
Thank you for reading.
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