A banking crisis of sorts broke out in the United States earlier this year, caused by the closure of institutions across the country. The truth is that some banks have declared bankruptcy, while major financial companies have closed branches across the north of the country.
However, there are many companies involved that claimed that the closures were part of their market strategy. It is evident that depending on the area of the country, some cities were hit harder by these bank closures than others.
But it’s no secret that, given this situation, North American consumers are finding themselves with fewer and fewer places to do their banking.
A total of 1,144 national and regional banks in 49 North American states have closed their doors, according to S&P Global Market Intelligence. We are talking about the corresponding period between January 1st and July 31st.
How did these effects play out in the States?
The most branch closures occurred in the state of California. This is completely understandable considering that the area is very vast.
On the other hand, New Jersey appears to be the state with the highest loss per capita, with a total of 83 banking institutions.
Followed by New Jersey are Washington DC and Connecticut. Vermont is the only state that hasn’t lost a single bank branch, according to S&P Global Market records.
If we talk about institutions, the most closings are PNC Bank, Wells Fargo, Chase, and US Bank. In this sense, PNC was the worst bank this year, eliminating a total of 201 bank branches in just seven months.
It is important to note that many large companies reiterate that closures are part of their business strategy.
Currently, customers are increasingly using digital alternatives in applications and websites, both from traditional and fully virtual banks. Therefore, this year, out-of-branch transactions have increased and consumer migration to digital has led to these closures.