Santander closes sixth branch in weeks as banks disappear from towns across the US
Banks across America are closing down branches as customers move online.
A major bank in the US is set to close yet another one of its branches as multiple financial institutions are deciding to move their business online following the pandemic.
Another branch of Santander will shut down operations next month, according to new reports.
According to Penn Live, the branch in question is in Harrisburg, Pennsylvania, and is being consolidated into another nearby Santander branch.
In a statement, Santander shared that it was planning to continue the digitization of its operations going forward.
The bank explained: “Like many industries, our customers’ preferences have changed, with more customers choosing to bank with us online.
“Therefore, we are reimagining the customer and employee experience by simplifying our processes, refining our branch footprint, and increasing our investment in digital capabilities to align with the evolving needs of our customers.”
This particular location is set to officially see its branch close on September 14, 2024. In 2023, four other Santander branches across Pennsylvania have already been shut down.
Last autumn, Santander closed four other branches in central Pennsylvania, including in York, Lancaster, and Dauphin counties.
Multiple banks, including Bank of America, have shut its branches as consumer trends have apparently changed.
Figures from S&P Global Market Intelligence show that net closures of branches rose 38 percent in early 2022 from the previous record of 2,126 in 2020.
The banks with the most closures were Wells Fargo, US Bancorp, the Bank of America and JP Morgan.
Earlier this year, S&P Global stated: “Banks have accelerated plans to consolidate their branch footprints as the Covid-19 pandemic encouraged consumer adoption of mobile and digital channels.
“Further, banks have faced a tough operating environment with low-interest rates pressuring margins and forcing a reconsideration of expenses.”
According to Andrew Hovet, the director of Curinos, bank branch closures will likely continue to increase by two to three percent annually.
Speaking to The Financial Brand, he explained: “I anticipate there is going to be financial pressure leading to a second round of Covid closures because CEOs are going to want earnings numbers.
“And a good place to start is with cost savings from closing more branches.”
