Abb Takk News

Big US banks are on branch-cutting spree

Some of the biggest US banks including Bank of America, Citigroup and JPMorgan have closed nearly 400 branches since September last year.

Bank of America has shut down 371 branches bringing the total number of branches from over 6,000 branches to 4,629 branches. The bank has cut 112 financial centers since last year.

Foreign publication quoted the chief Financial Officer of Bank of America Paul Donofrio as saying that the closing of branches was part of a “shift to self-served digital channels, mobile, online, and ATM” in a third quarter earnings call transcript.

According to the third quarter earnings report, the bank has 21 million mobile banking active users and 18% of deposit transactions are completed through mobile devices. That’s better for customers, it’s also better for our shareholders, he said adding that it’s one-tenth the cost of walking into a branch.

While announcing its third-quarter earnings on the 14th of this month the Citigroup informed that its branch count has shrunk 7 percent in North America from the third quarter of last year and is down 116 banks globally to 2,679.