In recent times, there has been a noticeable increase in the number of bank branches shutting down across the United States. Among the banks experiencing significant branch closures is Bank of America, one of the largest financial institutions in the country.
This article will explore why Bank of America and other banks are closing their branches, the impact on customers, and the shift towards digital banking.
Why Are Bank Branches Closing?
Bank of America’s Branch Closures
Bank of America has been at the forefront of closing branches. According to recent data from the Office of the Comptroller of the Currency (OCC), more than 400 Bank of America branches have closed since January 2024. The OCC requires banks to announce branch closures 90 days in advance and monitors new branch openings.
Steven Reider, founder and president of Bancography, notes that Bank of America is particularly aggressive in closing branches, especially those not near other branches.
Reider shared with the Daily Mail, “Banks are willing to close a branch that doesn’t overlap with another branch in the hope that customers will be willing to walk a little farther. I think Bank of America has chosen to do that more than other big banks.”
Recent Bank of America Branch Closures (July 9–July 16)
Here’s a list of some Bank of America branches that recently closed:
- KEARNY, NJ: 240 Kearny Avenue
- WILDWOOD, MO: 2412 Taylor Road
- STOCKTON, CA: 10834 Trinity Parkway
- ANTHEM, AZ: 39518 North Gavilan Peak Parkway
- PALOS HEIGHTS, IL: 12145 South Harlem Avenue
- ALBANY, NY: 1450 Western Avenue
- TULALIP, WA: 8815 Quil Ceda Boulevard
- MEMPHIS, TN: 2731 Union Ave Extended
Reasons Behind the Branch Closures
Mergers and Consolidation
One reason for the branch closures is Bank of America’s consolidation after multiple mergers. The bank ended up with several branches in less populated areas that were not cost-effective to keep open.
Changing Customer Habits
Another reason is the changing habits of customers. Banks hope that customers will be willing to travel a bit farther to reach another branch if their current one closes.
The Shift to Digital Banking
Increasing Popularity of Online Banking
The trend of closing branches has been accelerating since 2010, especially during the Covid-19 pandemic. More people are using online banking services, which has led banks to close physical branches, particularly in areas like the Midwest and California.
Personalized Services
Banks are now using data analytics to offer personalized financial services. These services include product recommendations, budgeting tools, and financial advice tailored to individual needs.
Enhanced Mobile Banking Experience
Banks are also improving their mobile apps. These apps now offer bill payment, money transfers, mobile deposits, and investment management, making banking more convenient for users.
Improved Security Measures
With the rise of online banking, banks have strengthened their security measures. This includes biometric identification and multi-factor authentication to protect user data from cyber-attacks.
Growing Use of Contactless Payments
The popularity of contactless payment methods, like mobile wallets and digital tokens, is also driving the shift. Banks are promoting these secure and convenient payment options through their apps.
The closure of bank branches, especially by major institutions like Bank of America, reflects a broader change in the banking industry. As digital banking solutions become more prevalent, banks are optimizing their branch networks and focusing on online services.
While these changes may be challenging for some customers who rely on physical branches, they also highlight the shift towards more digital and personalized financial services.
1. Why is Bank of America closing so many branches?
Bank of America is closing branches mainly due to consolidation after mergers and changing customer habits, which include a shift towards digital banking.
2. How many Bank of America branches have closed recently?
Since January 2024, more than 400 Bank of America branches have closed nationwide.
3. What are some examples of recently closed Bank of America branches?
Recent closures include branches in Kearny, NJ; Wildwood, MO; and Stockton, CA.
4. Why is digital banking becoming more popular?
Digital banking is popular due to its convenience, personalized services, and improved security features.
5. How are banks improving their mobile apps?
Banks are enhancing their apps with features like bill payment, money transfers, mobile deposits, and investment management.