That trend is apparently going to continue with some of the losses coming in Erie and Crawford counties.
Banks have always called their remote offices branches. But in recent years, they’ve been falling like leaves.
That trend is apparently going to continue with some of the losses coming in Erie and Crawford counties.
Pittsburgh-based PNC Bank, Warren-based Northwest Bank and KeyBank, which has its headquarters in Cleveland, were all in the news last week as they announced plans to close some offices.
Those closures are part of an ongoing trend.
According to the Federal Deposit Insurance Corp., U.S. bank branches have been closing at rate of more than three a day over the last decade.
The totals continue to climb.
About 12,000 bank branches have gone dark across the country over the last 10 years, a decline of 12%, according to a report in the Philadelphia Inquirer.
PNC, which has about 2,250 branches, plans to close 280 branches by the end of 2021, according to PNC Chairman William Demchak. Those closures include a drive-through location in the Liberty Plaza and a branch in Linesville.
You will see us continue to thin out our network,” Demchak said, according to the Pittsburgh Business Times. “For that to work, your digital sales have to pick up at a pace that offsets the sales you would get at the branches you are closing. So far, that is happening and then some.”
Despite the planned cuts, PNC isn’t giving up on physical branches, said Marcey Zwiebel, a spokeswoman for the company.
“PNC recognizes that branches still play an important role for many customers, who may still want to have a direct, personal conversation when it comes to major financial decisions, such as discussions re: mortgage, loans, retirement and investing,” she said in an emailed response to the Erie Times-News.
Meanwhile, Northwest announced plans to close 42, or about 20 percent, of its 205 full-services offices.
Planned cuts include the Grandview Plaza location and a branch in Lake City.
In making this announcement, Ronald J. Seiffert, the bank’s chairman, said, “Our customers’ banking preferences continue to evolve to favor a more digital banking experience and the COVID-19 pandemic has magnified and accelerated these preferences.”
James Martin, president of the Erie region for Northwest, acknowledged in a letter to customers that not everyone will be happy.
“Please know that deciding to close an office is never easy,” he wrote.
He promised that enhancements in digital banking will be made in the coming year to improve the customer experience.
PNC’s Demchak made his comments last week during a virtual Global Financial Services Conference hosted by Barclays Capital.
Speaking at the same event, Chris Gorman, chairman of KeyBank, said the pandemic has accelerated the company’ s digital transformation by as much as five years.
Gorman said Key has closed 82 branches over the past two years, including 21 branches this year.
He didn’t elaborate on future closings, but said the company’s objective “is a smaller, more impactful” footprint,” according to a Fox Business report.
Pittsburgh based F.N.B. Corp. has also closed numerous branches this year.
With just 11 locations, Erie-based Marquette Savings Bank does not approach the scale of PNC or even Northwest.
But Marquette has still experienced the same surge in online business in recent years, said Kelly Montefiore, the bank’s chief operating officer.
The move away from doing business in bank lobbies has grown even more pronounced since the COVID-19 pandemic began.
“The drive-ins have never been busier,” she said.
At this point, however, plans by other banks to close branches has worked to Marquette’s advantage, said Pete Sitter, a spokesman for the bank.
“It’s more of an opportunity for us,” he said. “PNC’s plans to close Linesville have brought an uptick in business at our Conneaut Lake office.”
The shutdown associated with the pandemic has given customers of all banks a chance to question their reliance on physical branches, Montefiore said.
“I think some people have recognized that coming into the branch every couple of days isn’t necessary,” she said. “They’re finding ways, like mobile deposits and cardless cash. They are figuring out different channels.”
Many bank executives have concluded publicly that the need for physical locations will continue to decline as more customers shift to mobile and other means of banking digitally.
But at least for now, Montefiore said, Marquette has no plans to reduce the number of branches in its footprint of Erie and Crawford counties.
Location still matters, she said, citing an American Bankers Survey that found proximity remains the top reason customers choose a bank.
“There is going to come a point when everyone is going to need to see their banker sometime,” she said.
Contact Jim Martin at [email protected]. Follow him on Twitter @ETNMartin.
