Bank / Credit Union
U.S. Bank to close 400 branches, reports robust digital engagement
October 20, 2020
U.S. Bank will close 400 branches by early next year, an announcement that coincides with the bank's Q3 2020 earnings report.
During its Q3 earnings report, the bank stated its net income dropped 17.2% year-over-year to $1.58 billion. The bank also reported the percentage of its customers who are digitally active now is above the three-quarters mark, standing at 76% as of August 31, 2020. Loan sales through digital channels reached 56%, the first time the majority of bank loan sales came via the digital channel, according to a report in Business Insider.
In the past 18 months the bank has closed approximately 10% of its branches. This new wave of closures planned for next year will include 15% of branches that were temporarily shuttered by the coronavirus pandemic. The cuts will leave U.S. Bank with a branch footprint of around 2,300 and generate $150 million in cost savings.
"While physical branches and personal interactions will always be important, [the bank needs] fewer branches today than [it] did even a few years ago," Terry Dolan, CEO, U.S. Bank said on the bank's Q3 earnings call.
