In a sweeping move towards digitalization, Bank of America has closed five branches in the first week of March 2025, marking the latest chapter in a growing trend. The closure of these offices highlights a fundamental shift in the financial sector, driven by the increasing preference for digital banking over in-person services. And with this, the question arises: is the end of physical bank branches on the horizon?
Branch Closures: What’s Behind the Trend?
The closure of bank branches is not a new phenomenon, but the rate of closures is accelerating. Today’s customers increasingly prefer to do their banking from their phones or computers, avoiding long lines and time-consuming visits to branches.
The COVID-19 pandemic has fueled this shift, making digital banking even more attractive. With bank apps, customers can perform tasks such as transfers, payments, investments, and even balance checks with a few taps or clicks—saving them hours of waiting in line at the branch.
This trend has been embraced by customers worldwide and is now firmly rooted in the post-pandemic reality.
How Many Branches Have Closed So Far?
Bank of America is just one of many institutions adapting to this digital shift. Between March 2 and 8, 2025, the bank closed branches in California, Florida, Oregon, and Tennessee. The affected locations are:
- California: 702 Mission Ave., Oceanside
- Florida: 8181 West Broward Boulevard, Plantation and 16686 SW 88th Street, Miami
- Oregon: 14400 SW Allen Boulevard, Beaverton
- Tennessee: 3741 Winchester Road, Memphis
According to the Office of the Comptroller of the Currency (OCC), the closure of branches has been an ongoing trend since 2022. Approximately 200 branches have already been closed since that time.
The OCC’s weekly bulletin, covering the period between March 2 and 8, 2025, indicated that more closures are planned for the near future.
A study conducted by Self Financial in 2024 reveals that since 2018, around 1,650 bank branches have been closed annually in the U.S. If this pace continues, physical banking could completely disappear by 2041.
The Impact on Customers and the Elderly
The shift to digital banking presents clear advantages for younger generations and those comfortable with technology. However, it poses significant challenges for certain demographics, particularly the elderly.
For older individuals who struggle with technology, digital banking can feel like a barrier that excludes them from essential services. Not everyone has access to reliable internet, a laptop, or a modern phone capable of handling these online transactions.
Moreover, for many people, some banking tasks—such as opening accounts or making large transfers—are still more easily handled in person. The closure of branches means that some customers are left without convenient options to conduct these types of transactions.
The rise of digital-only banking, while convenient, may inadvertently alienate those who are less tech-savvy or lack the resources to transition to online services.
What About the Workers?
As bank branches close, another issue arises—job loss. The closure of offices does not only affect customers but also the employees working in these locations. The loss of hundreds of local jobs will have a ripple effect on the economies of the affected areas.
Bank employees, whose roles are tied to the physical presence of these branches, will likely face job displacement as the industry transitions to a more digital model.
The shift toward digital banking and the closure of physical branches also raises questions about how these displaced workers will be integrated into the broader digital economy. Will there be new opportunities in tech-related roles, or will these workers be left behind in the transition?
The Future of Banking: Will We Ever See Physical Branches Again?
The trend of branch closures is unlikely to reverse, but it’s not necessarily the end of banking as we know it. We’re likely to see a shift toward smaller branches in very specific areas, focused primarily on advisory services or handling more complex issues.
These branches may be fewer in number, but they’ll serve more niche functions compared to the large branches we’ve traditionally known.
In parallel, digital-only banks are expected to gain more traction, offering full services without the need for a physical network. Bank of America, for example, has made significant investments in technology and digital security to allow its customers to manage their finances remotely, from virtually anywhere in the world.
For now, physical banking is not disappearing entirely, but the future is leaning heavily towards digital. The rise of 100% digital banks is already shaping the future of the financial industry.
