Bank Systems & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Channels

09:12 AM
Connect Directly
Facebook
Twitter
Google+
RSS
E-Mail
50%
50%

Branch Networks on a Downward Slope

New research from SNL Financial indicates the nation's branch total has been reduced by 390 during the third quarter of 2013.

Banks continue to close more branches than they open, as 390 locations were shuttered during the third quarter of 2013, according to new research from SNL Financial.

The states that lost the most bank branches were Indiana, Pennsylvania, and Florida which saw 25, 31 and 35 branches shuttered, respectively in Q3. The only state that has a net gain of branches in the third quarter was Nebraska, which gained one, along with the District of Columbia. For the year total, the U.S. had a net loss of 1,342 bank branches.

By metro area, Greater Indianapolis experienced the biggest reduction in branches during the third quarter, followed by the Chicago area and Greater Denver, the SNL analysis found.

Banks customers continuing to move to digital channels is one of the main drivers of the continued branch reduction, said SNL, along with the continued M&A trend in the industry as banks consolidate branches to save costs after closing deals.

However, the report noted that despite the dire statistics, branches are not headed for "immediate extinction."

"They still serve as the public face of banks and provide an important marketing function in high-traffic neighborhoods," a portion of the report states.

[See Related: Accommodating the Evolving Branch with an Adjusted Model/a>]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.