New S&P Report Bank Branches Shuttering in a Wave of Closures

A new report on the state of banking shows your local branch network is shrinking. S&P Global Market Intelligence took a look at the rate of bank closures in 2018 and found it reached a new record high. All told, 1,947 branches closed in 2018 - up from 1,919 from the year before.

S&P suspects this trend will continue. And so far, they're right. US Bancorp just announced they plan to close as much as 15 percent of their branches by 2021. 

But what does dwindling brick-and-mortar locations mean to you? Let's take a look at some of the consequences of this new trend and some possible solutions. 

Traveling to Your Nearest Branch Becomes a Challenge

This wave of closures creates pockets of cash deserts all over the country, impacting both urban and rural areas. When they hit, there are no convenient places to cash a check or apply for a loan. You have to travel to the next nearest in-network branch, which may not be near at all. 

For those without reliable transportation, even a short distance can be a huge obstacle. It takes time, money, and effort to get to the bank. 

This isn't convenient. You're at the mercy of public transportation, friends willing to drive you, or even the weather if you're forced to walk. 

What Are Your Options?

Many of the banks involved in these closures are pivoting their business to focus on mobile banking. They're hoping you'll stick with them and complete more of your daily banking needs online through their website or app.

This works well enough for some of the more basic tasks you do - things like cashing a check, transferring funds, or checking a bank balance is easy enough to do from your screen.

However, this doesn't address the issue you face when you need to speak with someone face-to-face or withdraw and deposit coin rolls. Some things just can't be done over the Internet or over the phone.

In these special circumstances, it might be easier to visit your local credit union. While banks are shuttering their doors, credit unions are opening them. They're a growing trend in the financial world as people seek out convenient, personable, and affordable alternatives.

It's easy to find world-class credit union services that stand toe-to-toe with the biggest banks. However, they offer something unique. Besides genuine face-to-face connectivity, you'll become a member that receives annual dividends and the ability to cast a vote. These membership perks help to keep local loans affordable and interest rates on your deposits competitive. 

Bottom Line

The financial world is changing. Gone are the days when you had a community bank that you could count on to help manage your money. As financial institutions adopt increasingly digital service streams, they leave behind an empty space. 

Credit unions may be the way you can fill it. Search out your local options to see what sort of banking services they offer. You'll notice they provide the same services you expect from a commercial bank - including convenient mobile banking options - but they focus more on the community they serve.