Banks in the US have totally closed 1,487 branches throughout the nation in 2013, according to an analysis by SNL Financial.
The report is based on an initiative launched by KeyCorp in mid-2012 that aimed to offset sluggish revenue trends and push the bank’s bottom line.
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According to SNL’s report, during the period from June 2012 and end of 2013, the Cleveland-based company consolidated 81 branch locations, or approximately 8% of its franchise, and in the last 18 months, it implemented annualised cost savings of $241m.
In comparison to KeyCorp, other banks such as Bank of America (BofA), PNC Financial Services and SunTrust Banks have closed even more branches during 2013, due to consumers moving towards online and mobile banking.
Other banks that cut down on their branches during the period were Capital One Financial, Hancock Holding and Citigroup.
In addition to closing or selling off branches, some banks such as Webster Financial and others are downsizing their branch sizes to half to reduce the expenses tied to large branch networks.
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By GlobalData
