Banks Closed More Branches Than Were Opened in 2019
Last year, according to the Branch Banking 2020 Research Report released by JLL, banks closed 3,164 branches in the United States, 56 percent of which were by the 25 largest banks in America. Meanwhile, 1,481 branches were opened, roughly 80% of which were by community and regional banks. Only 327 new branches were opened by the 25 largest banking institutions. Many of the newer branches are significantly smaller to accommodate for more technological development, the report noted.
Analysts Christian Beaudoin and Walter Bialas, who oversaw the research, stated that reducing space is part of banks’ plans to “integrate physical branches with digital platforms.” Research found that the industry will likely continue to consolidate branches at a rate of roughly 2 percent a year.
Despite branches closing, the banking industry is bringing in an increasing number of deposits. The total amount of deposits was $12.8 trillion. That comes to about $148 million per branch, which is double the average branch amount in 2009.
Of the larger branches that were closed, about 20 percent became restaurants, and about 17 percent were turned into health clinics. Roughly 7 percent were sold to other banks to be turned into small, technology-focused branches that are becoming more prevalent.
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