Major bank closures hit over 1,000 locations across 5 US states with Wells Fargo leading pack by shutting 267 branches

THE banking industry has witnessed over 1,000 retail banking branches shutter across five states.

In 2021, Wells Fargo was leading the pack with 267 closures.

According to S&P Global Market Intelligence, Wells was down 267 from their roster of 4,894 branches that year.

U.S. Bancorp ranked second on the list having closed 257 out of its 2,572 locations.

Also making the list was Truist Financial Corp (234 bank closures out of 2,553 locations), and Huntington Bancshares Inc. (221 bank closures out of 1,145 locations).

The five states hit the hardest were New York, Michigan, California, Florida, and Illinois.

JP Morgan Chase shut down 144 branches last year, according to Kiplinger.

And the news for banks hasn't improved much since then.

It’s no secret that digital transformation has impacted retail brick-and-mortar stores.

Many retailers have continued to shutter as more shoppers are turning to online shopping platforms.

However, retail isn't the only sector that’s been impacted.

The banking sector is also seeing a shift in how consumers like to do business - and digital is slowly starting to pick up speed among customers.

Over 95 percent of US households have an established bank account - either a traditional checking or savings account, according to 2021 FDIC data.

However, the way Americans are utilizing these accounts is starting to change.

In 2000, there were over 8,000 commercial banks in the United States, per FDIC data.

However, in 2021 4,231 - or just over half of those branches - were still open and operating.

That number has continued to plummet.

There were only 4,096 banks in operation in 2023, according to the latest data reported by the same source.

The impact is being felt across the board.

It isn’t just small banks in rural communities - it's banks of all sizes in metropolitan areas too.

Data has pointed to closures in lower-income and majority-minority areas though.

According to the National Community Reinvestment Coalition, one-third of branch closures from 2017 to 2021 occurred in these areas.

The impact of this change isn’t just about convenience.

The banking deserts that are being created as more branches shutter can lead to more non-traditional and high-fee banking options for some folks, like those relying on payday loans or check-cashing services.

And the elderly who may not be as tech-savvy or have the ability to access online banking options.