We live in an increasingly digital age, and for many people this means banking. Data: Forbes Advisor It found that by 2022, 78% of U.S. adults prefer to do their banking online via a website or mobile app rather than in person.

But that doesn’t mean there aren’t people who prefer it. brick and mortar banks. So it’s disheartening to see US banks closing their doors so soon.

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A report dated 13 October Daily MailCiting data from the Office of the Comptroller of the Currency, the federal banking regulator, it said 754 bank branches closed in the first nine months of the year. And it’s not necessarily smaller community banks that are closing locations. As of September, Bank of America closed 132 branches and US Bank closed 101 branches. Wells Fargo followed closely with 92 closings, followed by Chase with 90 closings.

Why might branches be closing their doors?

If you’ve noticed that online banks offer higher interest rates than brick-and-mortar banks, there are reasons for this. One of the most obvious is that it costs a lot to keep a physical bank running. There’s rent to pay, utilities to cover, and a host of additional expenses.

Considering the number of customers who do most of their banking transactions online, it seems logical that some large banks will reduce costs and consolidate. Additionally, closing underperforming branches could lead to greater focus on improving mobile platforms and taking other steps to improve the digital experience.

Problem with bank closures

According to research Personal FinanceIf current trends continue, brick-and-mortar banks in the United States could run out by 2041, according to commercial banking data from the Federal Deposit Insurance Corporation. From 2018 to 2022, an average of 1,646 branches were closed per year.

But closing physical banks could be a big problem. First of all, many customers need access to physical cash, and banks are an important source in this regard. You can log into a website or mobile app and transfer money, but you can’t press a button and have a wad of bills magically appear in your hands.

Physical banks are also needed because not everyone has equal access to technology. People in remote areas with poor internet service cannot always rely on mobile apps or websites to complete important transactions.

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There are also some benefits that consumers receive from in-person banking. If you need a document notarized, this is a service your local bank can provide. However, you cannot have a notarized document over the internet; You need a real person with a notary stamp.

Many people also rely on safe deposit boxes at banks to store their important documents. An online bank cannot offer this service for obvious reasons.

Additionally, some people prefer the convenience of being able to go to a bank and talk face to face with an employee to resolve issues or get assistance with daily transactions. Losing it could be a blow, especially to older people who are hesitant to use technology and are used to getting help from a human.

Finally, if perform a complex operationIt may be better to do this at a physical bank rather than an online bank. For example, if you’re setting up multiple accounts or making a multi-step money transfer, you may want to do it in person rather than online in case things get complicated or you run into an obstacle.

There is also the issue of security

Another problem with brick-and-mortar banks closing? Criminals have become increasingly successful at stealing customers’ personal information.

In cases where you are unsure whether a text message or email from a bank is legitimate, going to a physical bank to verify communications can be crucial. If these physical branches disappear, consumers may become increasingly likely to become victims of identity theft and fraud.

Additionally, if you don’t have internet service at home, it may not be safe to do your banking over a public network, the kind you might access at a local coffee shop or coffee shop. So in this case, having the option of in-person banking is very important.

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This article provides information only and should not be construed as advice. It is provided without any warranty.