Chase Bank has revealed plans to close nine more branches this year. The bank has indicated that it is quickly running out of locations to shut down.
Banking Shifts From Branches to Digital
Chase Bank plans to close nine more branches this year, highlighting a more significant trend across the banking sector. More customers prefer to bank online, using digital services instead of visiting physical branches.
As technology improves, it is changing how people handle their money. This shift is making traditional banks rethink their need for physical locations, leading many to reduce their number of branches.
The Office of the Comptroller of the Currency (OCC) has released new information about which bank branches will close soon. Last year, Chase shut down more than a hundred locations, and other banks are also reducing their physical branches while boosting their online services.
However, not all customers are happy about these changes. Many feel that issues easily solved by a quick visit to a local branch now result in frustratingly long phone waits.
So far, only one more branch closure has been announced this year. Nevertheless, the bank will proceed with its planned closures in the latter half of 2023.
Illinois is set to close three stores, two in Skokie and one in Wilmette. Store closures will also affect several other states. New York and Lafayette, Indiana, will each see one store close. The towns of Pataskala, Ohio, and Las Vegas, Nevada, are also preparing for the shutdown of one store each.
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JPMorgan Nears Limit on Branch Closures
JPMorgan Chase, the largest bank in America, is running low on branches it deems suitable for closure. Marianne Lake, co-CEO of JPMorgan's consumer and community banking unit, explained at a recent Goldman Sachs conference that the bank has "less and less accretive opportunities to consolidate" its network.
This statement marks a shift after years of regular branch reductions across the banking industry.
The consolidation of bank branches is primarily driven by the rise of online banking and a need to reduce costs. The COVID-19 pandemic, which decreased branch visits and significant bank mergers during 2021 and 2022, hastened this trend. By the end of 2022, the number of U.S. bank branches fell to 79,000 from about 100,000 in 2009, as per S&P Global Market Intelligence.
Contrary to the broader trend, JPMorgan slightly increased its branch count from 4,854 in September 2021 to 4,863 in September 2023, with plans to add around 150 branches annually. "Over time, you'll see our network generally be flat to up," Marianne Lake, co-CEO of JPMorgan's consumer unit, said.
Since 2017, the bank's new branches have accumulated about $85 billion in deposits. As part of its growth, JPMorgan plans to open up to 90 new branches in cities like Charlotte, Nashville, and St. Louis, targeting wealthy areas in the Northeast, including Boston. These expansions are among the bank's $8 billion investments in marketing and technology. However, some consolidation is still expected in the future.
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