U.S. Banks Closed 3,000 Branches Last Year: The Kiplinger Letter
Last year, 3,000 U.S. bank branches closed as lenders looked for ways to fight competition from fintech and digital banks and keep pace with technology.

U.S. Banks continue to shut down branches, in numbers not seen since the initial wave of bank closures in 2008, while allocating funds for new online technology. To help you understand what is going on in the banking and the financial sector, and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
Banks are closing branches faster than they’re opening new ones. U.S. banks closed over 3,000 branches last year while opening just 1,000. JPMorgan Chase led in branch closures last year, shuttering 144 branches, while opening 133. The trend will likely continue as banks face staunch competition for deposits and younger customers from online banks, fintech firms and Big Tech.
Note that the number of bank closures varies widely by area. Between 2017 and 2021, more than 7,000 branches were closed in the U.S., which represents 9% of all locations. One-third of these closures have been in areas with large minority populations.

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.
The initial wave of closures was sparked by mergers and acquisitions in the wake of the 2008 financial crisis. More recently, changing consumer preferences and improved banking tech are the reasons given for ditching brick-and-mortar locations. It shows that big-bank investment in tech is paying off, as new apps and websites with an expanding array of services have lured more customers.
This first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content

Rodrigo Sermeño covers the financial services, housing, small business, and cryptocurrency industries for The Kiplinger Letter. Before joining Kiplinger in 2014, he worked for several think tanks and non-profit organizations in Washington, D.C., including the New America Foundation, the Streit Council, and the Arca Foundation. Rodrigo graduated from George Mason University with a bachelor's degree in international affairs. He also holds a master's in public policy from George Mason University's Schar School of Policy and Government.
-
Alaska Airlines to Buy Hawaiian: Get Bonus Miles Now
How to use the Alaska Airlines credit card and frequent flyer program to save on trips to Hawaii, Alaska and beyond.
By Ellen Kennedy Published
-
11 Reasons to Consider a 1031 Exchange
Deferring capital gains taxes might be at the top of the list, but growing your portfolio and your wealth and helping with estate planning are also compelling reasons.
By Daniel Goodwin Published
-
As Mortgage Rates Rise, Renting Is Now Cheaper Than Buying for Many: The Kiplinger Letter
The Kiplinger Letter A jump in mortgage rates has caused housing affordability to slump and priced many first-time home buyers out of the market.
By Rodrigo Sermeño Published
-
Buy Now, Pay Later (BNPL) Sector Faces Financial and Regulatory Challenges: The Kiplinger Letter
The Kiplinger Letter BNPL companies are facing the challenges of high costs, tightening financial conditions and regulatory scrutiny.
By Rodrigo Sermeño Published
-
More Signs of Belt-Tightening and a Slowing Economy: The Kiplinger Letter
The Kiplinger Letter Although fewer banks are tightening lending standards, more businesses and households are feeling the squeeze.
By Rodrigo Sermeño Published
-
What Is Comprehensive Coverage and What Does It Cover?
insurance This grab bag of coverages can protect you and your vehicle from theft, fire and forces of nature.
By Donna LeValley Published
-
Passport Processing Times Speed Up: The Kiplinger Letter
The Kiplinger Letter The State Department credits an increase in staff and new technology with shrinking processing times.
By Sean Lengell Published
-
Five Tax Breaks for Paying Your Student Loan
Tax Letter After a three-year pause, student loan payments have resumed, putting a dent in people's wallets. But there are some tax breaks that can help.
By Joy Taylor Published
-
White House Aims to Limit Access to Short-Term Health Plans: The Kiplinger Letter
The Kiplinger Letter The Biden administration's draft rule would restore several Obama-era regulations.
By Matthew Housiaux Published
-
What Is Liability Insurance and What Does It Cover?
insurance Liability insurance protects you if you injure someone else or damage their property with your car.
By Donna LeValley Published