The ongoing closure of bank branches has been a hot topic, with Bank of America, the second-largest bank in the U.S., leading the charge. The bank has significantly reduced its physical locations over the past few years, creating what are now referred to as “banking deserts.” This shift reflects the growing preference for digital banking but leaves many customers with fewer in-person service options.
Let’s look into why this trend is happening, its impact on customers, and how you can stay informed about branch closures.
Bank Branches
The move toward digital banking has made it easier for customers to manage transactions online. Bank of America, like many financial institutions, has heavily invested in digital platforms, allowing tasks traditionally handled by bank tellers to be performed through mobile apps, online platforms, or advanced ATMs.
Reasons Behind Closures:
- Cost Optimization: Closing underperforming or duplicate branches reduces operational costs, freeing funds for digital banking improvements.
- Technology Advancements: Enhanced ATMs now handle more transactions, reducing the need for physical branches.
- Customer Trends: With a growing number of customers opting for online services, foot traffic in branches has decreased significantly.
Since 2009, the number of bank branches in the U.S. has fallen from nearly 100,000 to fewer than 80,000. This trend shows no signs of slowing down.
Impact
While digital banking is convenient for many, branch closures have created challenges, particularly in underserved areas:
- Limited Access: Some customers, especially older adults or those in rural areas, lack reliable internet or comfort with digital banking.
- Service Gaps: Certain banking needs, like accessing a safety deposit box or resolving complex issues, require in-person assistance.
- Banking Deserts: Entire communities now lack nearby branches, forcing customers to drive long distances for basic services.
In response, some customers have switched banks to find one with a local branch, highlighting the frustration caused by closures.
Staying Informed
The Office of the Comptroller of the Currency (OCC) plays a critical role in monitoring bank branch closures. Banks are required to submit a 90-day notice to the OCC before closing a branch, giving customers time to prepare. For example, customers may need to relocate a safety deposit box or transition their accounts.
Bank of America Closures:
| State | Branch Location |
|---|---|
| Arizona | 9325 North 7th Street, Phoenix |
| California | 6905 Capistrano Avenue, Atascadero |
| 2101 West 6th Street, Los Angeles | |
| Connecticut | 100 Federal Road, Brookfield |
| Florida | 3010 Cypress Gardens Road, Winter Haven |
| Georgia | 1674 Monroe Drive, NE, Atlanta |
| 3985 Sugarloaf Parkway, Lawrenceville | |
| Illinois | 3210 W IL Route 60, Mundelein |
| 40 N Randall Rd., Lake in the Hills | |
| Maryland | 3731 Branch Avenue, Hillcrest Heights |
| 7501 Redland Road, Derwood | |
| Missouri | 3100 Main Street, Kansas City |
| New Mexico | 4301 Wyoming Boulevard, NE, Albuquerque |
| New Jersey | 367 Springfield Avenue, Summit |
| 6718 Black Horse Pike, Egg Harbor Township | |
| New York | 900 Third Avenue, New York |
| Ohio | 3029 West 117th Street, Cleveland |
| South Carolina | 104 Regency Drive, Columbia |
| Texas | 6401 NW Loop 410, San Antonio |
| 1515 SW Loop 410, San Antonio | |
| Virginia | 4101 West Broad Street, Richmond |
| 12881 Braemar Village Plaza, Bristow | |
| Washington | 1600 Riddell Road, NE, Bremerton |
| 14440 124th Avenue NE, Kirkland | |
| 1201 Madison Street, Seattle |
In-Person Banking
While the push for digital banking improves efficiency, it highlights the need for balance. Customers require options that cater to both tech-savvy users and those who prefer face-to-face interactions. Until such a balance is struck, closures will continue to create challenges for customers relying on physical branches.
FAQs
Why is Bank of America closing branches?
To reduce costs and invest in digital banking improvements.
What is a banking desert?
An area with little or no access to nearby bank branches.
How can I know if my branch is closing?
Banks must notify the OCC 90 days before closures.
What alternatives are available for in-person banking?
Advanced ATMs and digital banking platforms are key options.
What states are affected by Bank of America closures?
States like Arizona, California, and Texas are impacted.
