The list of closed banks in the United States has continued to grow in recent weeks. Another giant that has decided to suspend its services in various locations in the country is JP Morgan. The event continues to shock millions of Americans who fear the arrival of a new economic crisis. However, these branch closures are not accurate because of that.
The companies themselves say that decisions are made after analyzing the response of their customers. Let’s remember that this month Bank of America and Wells Fargo also announced the end of their services in many locations in the United States.
As established, bank closures must be announced at least 90 days before they are implemented. Documentation with justifications for the procedure was sent to federal regulators and they approved the matter. Currently, the most affected state is Texas. There, not only will JP Morgan locations close, Home Bank is also making similar decisions.
More than 1,100 branches were closed in the United States
According to a recent report from Crowdfund Insider, more than 1,100 bank branches across the country have closed their doors so far. Customers prefer using online banking. This is precisely one of the reasons for the closure of physical bank branches.
In the case of JP Morgan, it is the financial services arm associated with Chase Bank. This company will close a branch in Friendswood and Houston, in the state of Texas. Meanwhile, Home Bank, a small Texas-based bank, will close two branches in Webster and Houston.
Banco Santander management explained the current closures. “Like many industries, our customers’ preferences are changing and more and more customers are choosing to bank with us online.”
Meanwhile, Associated Bank revealed that “decisions to close branches and ATMs reflect the growing use of digital applications.”
The trend in banking is that everything now revolves around online operations, and this is something that is increasing. “A large portion of bank closings have occurred in middle-income and predominantly minority communities.”
