Major US banks close 55 branches in two weeks amid online shift

In a significant shift towards online banking, major US banks have closed over 55 branches within a two-week period from August 19 to September 7. Notable banks such as Wells Fargo, Chase, and Bank of America have led the closures, with each announcing plans to shut down multiple locations. The trend reflects a growing preference for digital banking services, particularly among younger customers, with nearly 70% of individuals aged 25 to 34 favoring online transactions over in-branch visits. The closures span across various states, including Arizona and New Jersey, with California experiencing the highest number of branch shutdowns at 72, followed by New York and Pennsylvania. This trend is not isolated to a few banks; several institutions, including PNC and Santander, have also reduced their physical presence. The Office of the Comptroller of the Currency (OCC) has been notified of these closures, which are part of a broader reevaluation of branch networks by traditional banks. Experts suggest that the shift to online banking can lead to cost savings for consumers, as many online-only banks offer lower fees and higher interest rates due to reduced operational costs. The average cost of maintaining a freestanding bank branch is approximately $2.6 million annually, prompting banks to reconsider their physical footprints. As banks adapt to changing consumer preferences, they emphasize the importance of customer support during this transition. Financial experts encourage users to utilize online chat support and other resources to ease the shift to digital banking, ensuring that customers remain informed and supported throughout the process.