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The practice of pulling up to a bank’s drive-thru or parking and going inside to make a transaction may have seen its better days in many areas.
Bank of America, Wells Fargo, PNC and others are closing more branches than they are opening, according to CNN Money, citing research at SNL Financial, which specializes in banking data.
BOA opened 12 branches across the country last year and closed 256, SNL said. Wells Fargo opened 19 but closed 80, and PNC opened 32 but closed 82.
Overall, banks closed 2,267 branches last year and opened 1,149, for a net loss of 1,118 branch locations. SNL said it was the highest level of branch closings since 2005.
More customers are banking online with the growth in mobile devices and tablets. That helps eliminate the need for an oversupply of branches, which have to be staffed and maintained. Banks also aren’t making much money of low interest loans and have to deal with costly regulation, which are other incentives to save money by closing branches that don’t have high traffic, according to the CNN Money report.
How much do you rely on bricks-and-mortar bank branches, or is all of your banking done online these days?