Recently, there has been growing concern among customers regarding the widespread closure of bank branches across the United States.
Bank of America, one of the largest financial institutions in the country, has notably closed more branches in recent years compared to other major banks. This article delves into the reasons behind these closures, the recent branch closures, and the impact of digital banking trends.
Among the banks significantly affected by closures is Bank of America. Recent data from the Office of the Comptroller of the Currency (OCC) reveals that more than 400 branches nationwide have closed since January 2024. The OCC requires that banks disclose their intent to close a branch at least 90 days in advance. The OCC also oversees the opening of new branches.
According to Steven Reider, founder and president of Bancography, Bank of America has been more aggressive in closing branches that do not overlap with other branches. Reider explained in an interview 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.”
Full List of Bank of America Branch Closures (July 9–July 16)
Below is a table detailing the upcoming Bank of America branch closures:
| Bank | City | State | Location |
|---|---|---|---|
| Bank of America | KEARNY | NJ | 240 KEARNY AVENUE |
| Bank of America | WILDWOOD | MO | 2412 TAYLOR ROAD |
| Bank of America | STOCKTON | CA | 10834 TRINITY PARKWAY |
| Bank of America | ANTHEM | AZ | 39518 NORTH GAVILAN PEAK PARKWAY |
| Bank of America | PALOS HEIGHTS | IL | 12145 SOUTH HARLEM AVENUE |
| Bank of America | ALBANY | NY | 1450 WESTERN AVENUE |
| Bank of America | TULALIP | WA | 8815 QUIL CEDA BOULEVARD |
| Bank of America | MEMPHIS | TN | 2731 UNION AVE EXTENDED |
Bank of America’s strategy to close branches can be attributed to several factors:
- Merger Completion: Following multiple mergers, Bank of America ended up with several branches in rural areas that are underutilized and not cost-effective.
- Customer Habits: There is a hope that customers will adapt to walking a bit farther to reach the next nearest branch.
Online Banking Trends
Since 2010, the trend of bank branch closures has been accelerating, particularly during the Covid-19 pandemic, as digital banking services have gained popularity. The Midwest and California have been the hardest-hit areas. This shift towards online services is driven by several factors:
- Tailored Needs: Banks are increasingly using data analytics to provide personalized financial services, such as product recommendations, budgeting tools, and financial advice tailored to individual customer needs.
- Enhanced Banking Experience: The importance of mobile banking has led banks to develop user-friendly mobile applications featuring bill payment, money transfers, mobile deposits, and investment management.
- Stricter Security Measures: With the rise of online banking, robust security measures like biometric identification and multi-factor authentication have become essential to protect user data and prevent cyber-attacks.
- Contactless Payments: The popularity of contactless payment methods, such as mobile wallets and digital tokens, is growing. Banks are promoting these technologies through their mobile applications as a secure and convenient way to pay for goods and services.
The closure of bank branches, particularly by Bank of America, reflects broader changes within the banking industry.
These closures are influenced by the drive towards digital banking solutions and the need to optimize branch networks. While these changes pose challenges, especially for customers who rely on physical branches, they also highlight the evolving landscape of financial services towards more digital and personalized solutions.
FAQs
Why is Bank of America closing so many branches?
Bank of America is closing branches to optimize its network, focusing on locations that are underutilized or do not overlap with other branches. This strategy aims to encourage customers to use nearby branches or digital banking services.
What states are most affected by Bank of America branch closures?
States like Illinois, New Jersey, California, and Wisconsin have seen significant branch closures recently.
How can customers adapt to these closures?
Customers can adapt by using online and mobile banking services, which offer a wide range of financial services and tools. They can also visit the next nearest branch if available.