Philly, PA Lead Nation in Bank Closings

And the trend could accelerate as technology evolves.

Philadelphia Business Journal reports that Philly and Pennsylvania lead the nation in bank branch closings—Pennsylvania with 101 branches closed last year; with half of those coming from the city. (Jeff Blumenthal, the reporter, explains the number is net closings, meaning 101 more banks closed than opened overall.)

The process seems likely to accelerate, says Rick Weiss, an analyst with Boenning & Scattergood. “Right now, banks are trying to serve two generations,” Weiss said. “You have an older generation that likes bank branches and a younger generation that doesn’t use them as much. So as time goes on, I think you will see more closings unless banks can figure out a way to make their branches like Starbucks where people want to hang out in them.”


 

  • matthew brandley

    It also has everything to do with demographics. as baby boomers retire they have less expendable income and no need for the banks. No need for bank loans. Housing is imploding right now across the country with tens of millions of homes that have been bottled up in foreclosure about to hit the market. Mortgae apps have nosed dived to a 13 years low. Refis are at a 6 year low. Banks are still downsizing from the housing boom and are nowhere near finshed laying off. Bank branches will be shuttered across every city in every part of th country as the commercial and retail industry now goes under. You have not seen anything yet folks