Bank of America is continuing its branch closure programme, with more locations set to shut down in the coming months, as the bank prioritises online banking and cost-cutting. The move comes as part of a wider trend across the financial sector, as banks adapt to a changing landscape of digital banking and reduced footfall in physical branches.
This strategy has been gaining momentum since 2009, but accelerated significantly after the pandemic, as banks transitioned their operations online and strengthened security measures to combat cyber threats. The shift towards online banking has been readily embraced by customers, who have found it convenient and efficient. With the traditional banking hours often incompatible with working schedules, many have switched to online platforms without complaint.
Bank closures not only help reduce operational costs, but also allow banks to streamline their workforce by eliminating roles like office managers and cleaners, whose services are no longer required in a digital-focused environment. The closures are being conducted with the approval of the Office of the Comptroller of the Currency (OCC), the independent regulator responsible for overseeing national banks, federal savings associations and foreign banks operating in the US.
Bank of America has notified the OCC of its branch closure plan, which extends to the end of the year. While a list of scheduled closures has been released, the bank has not yet confirmed if more locations will be added to the list in the second half of 2024.
Here are some of the scheduled closures, which impact locations across the US:
- July 30: 3565 California St, San Francisco, CA.
- August 13: 11060 NE 6th Street, Suite 80, Bellevue, WA and 1401 S. Harbor Boulevard, Fullerton, CA.
- August 17: 2049 Century Park East, Los Angeles, CA and 455 Island Avenue, San Diego, CA.
- September 19: 5114 South Power Road, Mesa, AZ.
- September 24: 29687 The Old Road, Castaic, CA.
- October 29: 13700 Jog Road, West Delray Beach, FL.
- November 19: 6261 PGA Boulevard, Palm Beach Gardens, FL.
While the closures provide cost savings and streamline operations, they pose challenges for those who rely on physical branches, particularly those in rural communities with limited internet access. The lack of access to online banking services can create a digital divide, further isolating these communities and making it difficult for them to engage in traditional financial activities. As banks continue their shift towards online platforms, it's crucial to consider the needs of underserved communities and ensure they have access to essential financial services.