American Banks Have Slashed Another 78 Branches In The Past 30 Days. American Consumers Worry If Their Money Is Safe.

Leading American Banks have slashed another 78 Branches from their books in the past 6 weeks. Now consumers who bank with Wells Fargo, JPMorgan Chase and BofA are concerned. They worry about the financial stability of their bank.

The figures suggest the axing of costly bricks-and-mortar locations will continue. Banks closed 400 branches so far in 2024. Banking experts say more closures are on the horizon.

California is worst affected by the recent closures. Banks have shuttered 20 branches between April 20 and June 1. 

JPMorgan Chase led the charge by shutting 18 branches. Wells Fargo was next with 17 closures. This included eight in just the past week.

Bank of America filed to close sixteen locations in states across the country including California, Florida and New Jersey. 

BankUnited, BMO Bank, Citizens Bank and Inwood NB also announced closures. 

Banks Must Report Branch Closings To The OCC and FDIC

Each week, banks must tell the Office of the Comptroller of the Currency (OCC) of branches openings and closures. 

The last year in which the number of branches in the US increased was 2011. There were more than 85,000 bank branches throughout the US. Now, there are about 70,000.

Banks Say The Future Is In Online Banking And Branch Bank Is Dead

Most national banks have become increasingly confident that online banking can meet most customers’ needs.

Industry experts say branch closures can lead to significant savings for consumers. The average freestanding branch costs $2.6 million a year to run. An Indian or Filipino call center cost 20% of that. Those call centers can handle the business of hundreds of branches.

Bank of America’s merger history has meant it ended up with branches in rural locations that don’t generate foot traffic.