Get Used to Virtual Banking
Branch closures set a new record. Expect more mobile and ATM services.

As foot traffic dwindles, bank branches are closing in record numbers, including those of large institutions and smaller banks. Net closures totaled nearly 1,500 branches last year, according to a recent report by SNL Financial, a financial data firm -- the most since it started monitoring closures in 2002. This is just the beginning of the slide. Celent, a consulting firm, forecasts declines of up to 40% over the next decade.
Highly populated metro areas had the most closures last year, with Philadelphia, Chicago and New York dropping the largest number of branches. The biggest cuts are expected to come from large banks, such as PNC, which reduced the number of its branches by 6% in 2013, and SunTrust, which cut 8% of its branches.
But consolidation among community banks is expected to continue, and that will add to branch closures, too. (For investing opportunities in small banks, see Small Banks, Big Dividends.)

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
All banks will be walking a tightrope, says Bob Meara, senior analyst at Celent. “They can’t disappear in any market, but they have to reduce density and increase digital transactions,” he says. Look for big banks to follow Bank of America’s lead and introduce ATMs that do more, whether it’s offering virtual tellers via Web cameras or providing exact change. Some banks, such as Wells Fargo and Bank of America, have added online appointment scheduling for branches, and other banks will follow suit.
Smaller banks will focus on stepping up mobile options. Currently, 20% offer deposits via smart phone, and Cary Whaley, of Independent Community Bankers of America, estimates that 60% offer mobile banking, mostly via apps.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Roth IRA Contribution Limits for 2025
Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?
insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know So Far, Plus Early Deals
Amazon Prime Here are the key Amazon Prime Day dates and details you need to know, plus some of our favorite early deals to shop ahead of the sale.
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
-
Retirees, It's Not Too Late to Buy Life Insurance
life insurance Improvements in underwriting have made it easier to qualify for life insurance, which can be a useful estate-planning tool.