BANKS have been working to digitize their assets, leaving brick-and-mortar stores behind across the US.
In New York state, five more bank branches made it to the chopping block in September as banks continued their digital revolution.
In the week ending September 2, two banks reported to the federal government that they would each close a branch.
Bank of America announced the closure of a location in Pelham Manor, while Newtek Bank announced closures in Flushing, Queens.
A week later, another filing revealed that three more banks in the state were closing.
Webster Bank has filed to close a location in Scarsdale, First National Bank of Long Island is closing a branch in Manhasset and a Citizens Bank location is closing in East Northport.
The locations are scheduled to close at the end of October.
Banks are required to provide customers with 90 days’ notice of a bank closure in federal records.
The closures come after years of bank branch closures as financial institutions move to an increasingly digitalized platform.
Bank executives have announced plans to close dozens of branches across the U.S. and expand their digital presence.
Following a recent closure, Santander Bank wrote that it was closing locations based on customer requests.
“As with many industries, our customers’ preferences have changed, and more and more customers are choosing to bank with us online,” the company wrote.
“That’s why we’re reimagining the customer and employee experience by simplifying our processes, refining our branch footprint and increasing our investment in digital capabilities to adapt to our customers’ evolving needs.”
Following the closure of branches and ATMs, Associated Bank also said customers are increasingly using digital apps, minimizing the need for brick-and-mortar locations.
“The consolidations are consistent with an industry-wide trend that includes consumers adapting to digital banking, smaller branch footprints and lower frequency of walk-in traffic,” the brand told the Milwaukee Business Journal.
FUTURE OF BANKING
According to Crowdfund Insider, over 1,100 bank branches have closed this year.
The shift to closure locations and the digitalization of banking operations has caused concern among U.S. lawmakers.
A large portion of the bank closures occurred in middle-income and majority minority communities.
According to a study by the National Community Reinvestment Coalition, one-third of bank closures occurred in minority neighborhoods.
The study also found that closures could lead to larger banks dominating the industry.
“The major consolidation resulted in a few large megabanks dominating the market while small community banks disappeared,” the study said.
The US Sun reports on more bank branch closures – here’s another state that’s seeing a series of closures this year.
Additionally, three more banks are closing branches in another state.