Banks Set Record for U.S. Branch Closures as Cost Cuts Sought

The number of U.S. bank branches dropped by a record 2,927 last year as lenders both large and small sought ways to cut costs and keep pace with a digital transformation sweeping the finance industry.

The tally includes the opening of more than 1,000 new locations and the shuttering of almost 4,000 existing branches, according to data from S&P Global Market Intelligence published Thursday. Net closures were up 38% from the previous record of 2,126 in 2020.

The shutdowns came in a two-year period when more and more customers switched to doing their banking online or through apps during the ...