Record Number of US Banks Shut Down in 2021

Larry Lease

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American banks have been closing branches in record numbers.Pickawood/Unsplash

The American banking system has been a major part of the U.S. economy. However, a record number of branches closed their doors last year. In 2021, nearly 4,000 retail units were closed, while 1,000 new openings. This brings it to a net of 2,927 branches being closed.

In 2021, Wells Fargo shut down 267 branches, the most among all banks. Meanwhile, JPMorgan Chase opened most branches. PYMNTS.com reports that the American market is now seeing an increase in mergers. U.K. banks are also seeing similar trends. A downward trend in branches is to be exepcted over the years, because of the digital age. More and more transaction-oriented aspects of banking are done digitally.

The banks are turning their focus towards building up their infrastructure to provide better experiences for their users. The digital shift is one major factor behind the closure of branches. The other serious cause of these closures is the ongoing pandemic, which has forced the banking giants to shift to online banking to assist customers. PYMTS says the majority of banking account holders prefer online banking due to the ongoing health risks in the current environment. Data has been showing that 41% of the users use mobile banking apps for transactions, and 26% prefer using their home computers.

The online banking system is quicker and more efficient for users. It provides rapid data transfers and complete security. PYMNTS report shows that over 50% prefer biometric security over passwords and pins. While struggling to operate their brick-and-mortar banking branches, the increase in online banking services has bailed the banking system out of trouble.

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I specialize in crime, entertainment and political stories. I have spent eight years as a freelance writer and journalist.

Dallas, TX
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