Banks are reducing their branch footprints as more customers choose to manage their accounts through mobile and other digital channels, instead of banking at traditional brick-and-mortar retail locations.
The S&P Global report indicates the COVID-19 pandemic has accelerated the shift toward digital banking, as low interest rates put additional strain on many banks. In response, banks are shuttering a record number of branches.
As banks downsized their branch networks in 2021, corporate dealmaking in the sector took off. U.S. banks made 208 deals in 2021, with a total estimated value of $77.58 billion, the highest value since 2006, S&P Global found.
