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BANKING BUST
Plus, see why some bank branches have been shutting down across the US
- Amanda Castro, Senior Consumer Reporter
SOCIAL media users have shared their dismay about the closure of an in-store US Bank branch in a popular grocery store.
A Facebook user shared a photo of a gutted space inside a local Kroger supermarket that used to belong to the bank.
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The user highlighted the closure of the US Bank branch in Kroger, posting, “US Bank inside of Kroger. It was open about a month ago,” along with images of the now-closed facility.
This sentiment resonates with a broader trend as customers note that US Bank has shuttered nearly all its in-store branches.
The shift reflects changing consumer behaviors, where digital transactions have largely replaced the need for physical bank locations, according to several user comments.
“Many of the banks have pulled out of the grocery stores as most people do direct deposit and use their debit cards for most purchases," commented one user.
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Customers have embraced digital platforms like Venmo, Zelle, and PayPal, making in-person banking less relevant, they added.
"Banks in stores are a dying breed," remarked another. "I haven't seen one in a long time. I personally haven't been in a bank in years. I use my phone to deposit checks."
'WASTED SPACE'
Other people have also reckoned beneath the post that there are services that are better-suited for this kind of space in comparison to a bank branch.
“Kroger by my house turned their old bank space into grocery delivery/pickup service," wrote someone.
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"Banks inside grocery stores are being replaced by Starbucks in some places," said a second. "In others, it’s just wasted space."
Users have also observed that newer banks are eliminating drive-thru windows in favor of virtual interactions, stating, “They are video chatting from either inside or at a call center somewhere.”
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Automated machines are increasingly handling transactions that once required a human touch, further reducing the necessity for in-person services.
Regarding the in-store bank closure, The U.S. Sun has reached out to US Bank for comment.
BRANCHES GO BYE-BYE
In a landscape transformed by the pandemic, many major banks are increasingly closing their physical branches in favor of enhanced digital offerings.
This shift has been propelled by the necessity of online banking during the pandemic, turning what was once seen as a convenience into a vital service for consumers.
BANK CLOSURES ACROSS THE US
Here is a list of banks that have shut down some locations across the US:
- US Bank
- PNC
- Wells Fargo
- Citibank
- Bank of America
- TD Bank
- Chase
- Citizens
- Woodforest
*This list does not reflect permanent closures of banks; just those that have recently shut down locations
According to recent data from S&P Global Market Intelligence, the US banking industry recorded a staggering 229 net branch closings in the first quarter of 2024, a significant increase from just 59 in the previous quarter.
This trend follows a tumultuous 2023, during which over 2,400 bank branches were closed — a sizable figure that, while still significant, marked a considerable slowdown from the closures experienced during the height of the pandemic.
Nathan Stovall, head of financial institutions research at S&P Global Market Intelligence, commented on the ongoing trend, telling The Wall Street Journal, “Banks have recognized that their physical footprint does not need to be as large today.”
As banks grapple with persistent revenue pressures, it seems likely that they will continue to shrink their branch networks.
Despite the downsizing of physical locations, the outlook isn’t entirely bleak.
Some banks, such as PNC and JPMorgan Chase, are actively pursuing growth strategies by opening new branches in smaller cities and underserved communities across the US.
This approach reflects an awareness of the ongoing need for accessible banking services in areas that may lack sufficient options.
Industry experts also suggest that the trend of branch closures may not persist indefinitely.
As larger banks streamline their services and eliminate overlapping branches, “the opening-to-closing ratio of branches will continue to flatten over time,” said Paul Davis, CEO of advisory firm Bank Slate, per Quartz.
This could signal a stabilization in the branch landscape as banks find a balance between physical and digital service offerings.
In-store banks aren't the only spaces facing shutdowns.
Read More on The US Sun
A popular movie chain has shut its doors for the final time and customers only noticed after no showtimes were scheduled.
LL Flooring has also faced huge numbers of shutdowns after filing for bankruptcy.
