Went to the bank Before strengthening their branches Coronavirus epidemic And the focus is on cities where there is employment growth.
Since the epidemic, many people have permanently closed more branches, while others have reduced their hours.
Florida Gulf Coast University finance professor Tom Smithe says the number of bank branches will decline by 20% to 30% after the epidemic.
The epidemic has forced many consumers to adopt and use online banking for deposits or payments. ATM For cash withdrawal. They say that banks have significantly reduced their branch network, as people have been forced to go into electronic banking. “When they do, they usually become comfortable with it.”
Why do banks close branches?
To improve their profit margins, banks have reduced the costs of staffing teller and other employees as well as the construction and maintenance of bank branches. Overhead or uninterrupted spending is “an area that they actually control,” Smyth says.
Some banks with multiple branches in an area have closed some branches because of a drop in the amount of drive-throughs or consumers going inside the bank even before the epidemic. Customers are increasingly choosing to bank online or over the phone and through ATMs.
Banks should notify the office of the currency, the Federal Reserve Board or the Federal Deposit Insurance Corp 90 days in advance to close a branch and inform customers at least 30 days in advance. National Association of Federally-Insured Credit Unions says Credit Union Notification rules are exempt, but say state-chartered credit unions typically have to report to the state authority.
Wells Fargo It is said that 18% of its branches are temporarily closed, and hours are limited on Saturdays. Julia Tunis Bernard, vice president of Wells Fargo, says customers can only use drive-throughs and access certain services.
HSBC Bank USA The bank has consolidated 80 branches, announced in February, says Matt Klein, HSBC head of communications, retail banking and wealth management.
“We are refining our retail business focus to better meet the needs of the US-based international population and the globally mobile and affluent consumer population,” he says.
PNC Bank There are plans to close 160 branches in 2020 and another 120 in 2021, PNC CEO William Demchak said during a September Barclays Global Financial Conference conference. During the third quarter, 75% of customers did not use Taylor for the majority of their transactions as 67% of total deposits went through ATMs and mobile apps. “Almost all the lobbies” have been open since October 5, says Marcy Zwiebel, senior vice president and director of corporate public relations for PNC.
“PNC has been strengthening its branch network over the past several years,” she says. “There are many options for banking with PNC via online, mobile, ATM and phone. The way these customers are handling their banking transactions are key inputs that inform our branch consolidation decisions.”
What should you do if your branch is closed?
Customers with the habit of using bank branches can look for other branches that are nearby, find ATMs that are on the same network or see if your bank will offer discounts on ATM fees. You can also consider opening an account with a bank that has an operating branch near your home or office.
Consumers can deposit paper checks at ATMs. They are a good option since they are available 24 hours, and many banks are located inside ATM targets such as supermarkets and retailers.
Changes in direct deposits can help employees avoid the need to visit a bank branch or ATM to make a deposit. Another option is to download your bank’s mobile app to a smartphone, take a check photo and deposit a mobile.