Brandon Lee
The rise of digital banking has accelerated the closure of bank branches across the US, with more than 320 bank branches marked for closure in the first 13 weeks of 2025. U.S. Bank is among the institutions leading this wave of closures, with some 40 locations set to shut down operations. This trend has been exacerbated by the pandemic, with U.S. banks filing for the planned closure of 113 banks between November 30 and January 11. While most customers have moved online, these closures pose significant barriers for older adults, those with limited internet access, or those in rural communities who rely on in-person banking services.
| Characteristics | Values |
|---|---|
| Number of US bank branches marked for closure in the first 13 weeks of 2025 | 320 |
| Institutions with branches marked for closure | Flagstar, TD Bank, Wells Fargo, Bank of America, U.S. Bank, Chase, PNC, J.P. Morgan Chase |
| Number of U.S. Bank branches closed in 2024 | 40 |
| Number of U.S. Bank branches closed in 2023 | Over 170 |
| Reasons for the closure of bank branches | Shift to online banking, the impact of the pandemic, and the need to optimize branch networks |
| Impact of closures | Reduced access to financial services, longer wait times, and a higher risk of financial exclusion for older adults, those with disabilities, and low-income individuals |
| Percentage of bank customers in the US who use mobile devices for banking | 55% |
| Percentage of bank customers in the US who use online banking | 22% |
| Percentage of bank customers in the US who visit bank branches | 8% |
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What You'll Learn
US Bank is closing 40 branches in 2024
The rise in bank branch closures is due to a larger shift in banking behavior, with the popularity of digital banking on the rise. According to a study, more than 200 million Americans still make transactions in branches, but the use of mobile apps and online banking is rapidly expanding. A 2021 report by National Cash Systems indicated that nearly 40% of Americans used an ATM between eight and ten times per month, and approximately 10 billion transactions are processed via ATMs annually in the US.
While banks are reshaping their physical footprints, it is important to note that branches continue to play an important role in serving customers, especially when combined with mobile apps, online websites, and ATMs. Some banks, such as Wells Fargo, have emphasized their ongoing investment in their branch networks, opening new locations and refurbishing existing ones.
The trend of bank branch closures was accelerated by the pandemic, with US banks' net branch closings reaching their highest quarterly level in Q3 of 2024, according to a report by S&P Global. This report recorded 944 bank closings between January and September 30, 2024. Bank of America and Wells Fargo reported the highest numbers of closures in Q3 of that year.
As US Bank and other financial institutions adapt to changing customer needs and the rise in digital banking, it remains to be seen how these closures will impact the communities they serve.
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Wells Fargo, Capital One, and Bank of America also closing branches
There is no indication that US Bank is going out of business. However, in 2025, more than 320 U.S. bank branches have been marked for closure, with institutions like Wells Fargo, Bank of America, and Capital One among those continuing to reduce their physical presence.
Wells Fargo has faced controversy in recent years, with a $3 billion fine agreed upon in 2020 for a scandal that took place between 2002 and 2016. The scandal involved employees being pressured to open fake accounts in customers' names due to unrealistic sales goals. As a result, major investors, including billionaire Warren Buffet, sold their stakes in the company. Despite this scandal, Wells Fargo reported a net income of $18.6 billion in 2024, and the company has continued its strategy of closing banks, with 14 branches closing across 10 states.
Bank of America is also closing eight branches in 2025, including locations in Las Vegas and Charleston, South Carolina. The shift to online banking has resulted in brick-and-mortar branches shutting down across the country.
Capital One closed 16 branches in 2024, including locations in Los Angeles, New Orleans, and Houma. The company joins other banks in reducing their physical presence, with a focus on shifting to online platforms to meet customer needs.
The rise in bank branch closures is due to a larger shift in banking behavior, with the use of mobile apps and online banking rapidly expanding. While this shift may pose challenges for those who rely on in-person banking, it is important to note that branches continue to play a role in serving customers, often in combination with digital services.
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Digital banking's rise impacts older adults, disabled, and low-income people
The rise of digital banking has had a significant impact on older adults, disabled people, and those from low-income backgrounds. While digital banking continues to rise in popularity, the gap between convenience and accessibility has grown. According to a survey, 55% of bank customers in the US use apps, phones, or other mobile devices for their banking, while 22% use online banking, and only 8% visit bank branches. This shift towards digital banking has led to a wave of bank branch closures across the US, with more than 320 branches marked for closure in the first 13 weeks of 2025. This trend was accelerated by the pandemic, with net branch closings reaching their highest quarterly level in Q3 of 2024.
These closures disproportionately impact older adults, disabled people, and low-income communities who often rely on in-person banking. For these individuals, bank branches provide essential access to banking services and financial expertise that they may not be able to access elsewhere. In-person banking remains crucial for those with limited internet access, and closures can result in reduced access to financial services, longer wait times, and an increased risk of financial exclusion. Additionally, older adults and people with disabilities are more vulnerable to digital and telephone fraud, and banks have failed to implement financial education programs to address this issue.
Furthermore, online banking platforms often lack accessibility features for individuals with disabilities. A study by Shippensburg University found that 60% of participants with vision disabilities were unable to use a financial website or app due to accessibility barriers. Banks need to ensure that their digital platforms meet accessibility standards and periodically monitor compliance.
While digital banking offers benefits such as convenience and accessibility for some users, it is important to recognize its impact on vulnerable populations. To mitigate these impacts, banks can take targeted action in several areas, including inclusive website and app design, voice assistants, video banking, and dedicated call centers for older adults and disabled people. Additionally, providing designated staff to assist older adults with their financial needs and offering easy-to-read debit cards can improve accessibility and reduce stress associated with banking for this demographic.
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2021 report: 40% of Americans use ATMs 8-10 times a month
As of 2025, there is no evidence to suggest that US Bank is going out of business. However, the bank has announced the closing of 40 branches in 2024, in addition to branch closings by Wells Fargo, Capital One, and Bank of America, among others.
Now, regarding the 2021 report on ATM usage, here is a detailed overview:
The report published by National Cash Systems in 2021 revealed interesting insights into ATM usage in the United States. According to the report, nearly 40% of Americans used an ATM from eight to ten times per month. This equates to an average of 300 times per month for each ATM. This frequent usage highlights the continued relevance of ATMs in financial activities, with approximately 10 billion transactions processed via ATMs in the US annually.
The report also shed light on the growing popularity of Smart ATMs, which are more than just cash dispensers. These advanced machines can perform a range of functions, including allowing customers to withdraw their chosen mix of currency notes to make payments beyond cash withdrawals, such as for bus or train tickets. The introduction of these innovative Smart ATMs is expected to contribute to the growth of the ATM market, as they enhance the consumer experience, improve convenience, and reduce fraud.
Furthermore, the report emphasized the importance of ATMs for specific demographics. While mobile apps and online banking are increasingly popular, in-person banking remains vital for older adults, individuals with limited internet access, those with disabilities, and people living on low incomes. ATM usage is particularly high among Americans aged 25-34 and 35-49, with 60% and 51%, respectively, withdrawing $40 eight to ten times per month.
The 2021 report by National Cash Systems provided valuable insights into the usage and impact of ATMs in the United States, demonstrating their enduring significance in the financial landscape, especially for certain segments of the population.
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55% of US bank customers use mobile devices for banking
Mobile banking has seen a surge in popularity over the last decade, with 55% of US bank customers now using mobile devices for their banking needs. This shift can be attributed to the convenience and time-saving benefits offered by mobile banking, allowing users to conduct transactions from anywhere at any time using their smartphones or computers. As a result, traditional banks have had to invest in developing their own mobile banking apps to stay competitive and retain customers.
The rise of neobanks has also disrupted the industry, forcing traditional banks to enhance their mobile banking services. Neobanks have successfully offered customers a seamless and user-friendly mobile banking experience, making it easier for customers to manage their finances on the go. This has led to a growing number of mobile banking users among the leading US banks. For example, JPMorgan Chase has tripled its number of active mobile customers between 2013 and 2023.
In 2023, the leading mobile banking service provider in the US was Chime, with 5.8 million monthly active users. The banking apps of traditional banks, such as Capital One, JPMorgan Chase, and Bank of America, have also maintained their popularity, with a high number of app downloads. The adoption of mobile banking has been influenced by various factors, including the increasing use of mobile devices in daily life and the convenience and efficiency valued by consumers.
Demographic factors also play a role in mobile banking adoption. Younger individuals aged 15 to 24 are more likely to use mobile banking, with 74% reporting its usage in 2021 compared to 15% of those aged 65 or older. Additionally, higher-income households and individuals with higher education levels are more inclined to adopt mobile banking services. The convenience, accessibility, and user-friendly nature of mobile banking have made it a preferred choice for many customers, driving traditional banks to continuously improve their digital offerings.
The satisfaction rate among customers regarding their bank's digital channels is high, with 96% of consumers rating their bank's online and mobile app experience positively. Technological improvements have made it easier for Americans to access financial services, promoting financial inclusion. The growth of mobile banking has transformed the way consumers interact with financial institutions, and traditional banks must continue to innovate to meet the changing needs and expectations of their customers.
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Frequently asked questions
No, US Bank is not going out of business, but it has been closing down branches across the country. In 2023, it shuttered over 170 bank branches, and in 2024, it announced the closing of 40 more.
The rise in bank branch closures stems from a larger shift in banking behaviour. The use of mobile apps and online banking is rapidly expanding. A recent survey conducted by Morning Consult found that 55% of bank customers in the US use apps or phones or other mobile devices for their banking.
Other banks that are closing branches include Wells Fargo, Bank of America, Chase, Capital One, and Flagstar.
For consumers, especially older adults, those with limited internet access or those in rural communities, these closures pose significant barriers. In-person banking remains essential for many, and longer distances to branches could mean reduced access to financial services, longer wait times, and a higher risk of financial exclusion.
Customers can use a bank's app to deposit cheques or review their deposits. They can also use ATMs to withdraw cash and check their balance.
