US bank branch closures hit new high in 2021 – Tearsheet
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US banks are closing on the high street as customers increasingly shift to more digital financial experiences, making physical branches less useful for financial institutions.
The number of net bank branch closures in the United States increased nearly 40% year-on-year to 2,927 branches in 2021, according to data from S&P Market Intelligence. This figure reflects around 4,000 branch closures, offset by around a thousand openings.
As the pandemic forced consumers to stay home and interact with their financial providers primarily online, banks responded by shrinking their branch footprints and focusing more on growing their digital operations.
Other factors contributing to this trend are industry consolidation and a low interest rate environment, which has prompted banks to tighten spending.
The net number of branch closures has increased over the past three years.
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