In a sharp acceleration of a long-term trend, major U.S. banks have announced the closure of 36 local branches between April 26 and May 15, 2025, sparking renewed concerns about declining access to essential financial services across the country. Institutions such as Santander, US Bank, Wells Fargo, and others filed closure notices with the Office of the Comptroller of the Currency (OCC)—a required step before permanently shuttering any location.
Which Banks Are Closing the Most Branches?
Among the eight banks reporting closures in this brief period:
| Bank | Number of Closures |
|---|---|
| Santander | 28 |
| Community Bank | 5 |
| US Bank | 4 |
| Wells Fargo | 3 |
| Bank of America | 1 |
| Capital One | 1 |
| Flagstar Bank | 1 |
| Key Bank | 1 |
Santander alone accounted for nearly 80% of the reported closures, suggesting a major restructuring or a broader retreat from certain markets.
States Most Affected
Some regions are clearly being hit harder than others:
- New York: 10 branch closures (most affected)
- Massachusetts: 6 closures
- Pennsylvania: 5 closures
These closures disproportionately affect the Northeast, an area with a traditionally dense branch network.
Long-Term Trends: A Shrinking Network
The wave of closures is not new but reflects an accelerating pattern. In 2024, U.S. banks closed 1,043 branches, and the first quarter of 2025 alone saw 272 branch closures, putting the country on pace for another record-setting year.
At this rate, Self Financial projects that the final U.S. bank branch could close by 2041, based on an annual net average of 1,646 closures since 2018.
The Impact on Local Communities
Darren Kingman, a financial expert from Root Digital, warned that the steady closure of physical branches is stripping communities of vital services.
Although the banking industry continues to push toward digital platforms, Kingman emphasized that over 200 million Americans still deposit cash, and that limited access to branches means longer lines, fewer services, and delays for those who still rely on in-person banking.
A GoBankingRates survey reinforces these concerns:
- 45% of Americans prefer in-person banking
- More than 50% are worried about branch closures
- 76% say the current banking system needs reform
The Digital Shift and Growing Divide
Andrew Murray, lead data content researcher at GoBankingRates, commented:
While many Americans appreciate the convenience of mobile banking, the loss of physical branches disproportionately affects seniors, low-income individuals, and those without reliable internet access.
What This Means for the Future
As digital banking dominates and institutions cut costs, the banking landscape is rapidly transforming. But this evolution is not without consequences. Critics argue the closures are leaving “banking deserts”—areas where residents must travel significant distances for basic services.
With mounting pressure from consumers and watchdogs, the challenge for banks now is to balance technological advancement with equitable access. Whether new models—such as mobile branches or shared service hubs—can fill the growing gaps remains to be seen.
FAQs:
Why are banks closing so many branches?
Banks are reducing overhead and shifting to online platforms, where most customers now do their banking. It’s part of a cost-saving, digital-first strategy.
Are these closures permanent?
Yes, most closure filings with the OCC are followed through, though some may be delayed or revised.
What happens to customers of a closed branch?
Accounts are typically transferred to the nearest remaining branch. Banks notify customers and offer digital alternatives.
Will bank branches eventually disappear completely?
At the current pace of closures, experts predict the last physical branch could shut down by 2041, although the timeline could shift based on regulatory or consumer response.
Can I still do everything online that I could in-branch?
Most banking can be done online, but services like cash deposits, notarizations, and financial advice may still require a branch visit.
