Bank of America has confirmed the permanent closure of 19 of its branches in 2025, marking a continued trend of bank closures across the United States. The affected states include California, Florida, Illinois, Kentucky, Massachusetts, Nevada, South Carolina, Texas, Virginia, and Washington. These closures will happen throughout the year, with some already taking place and others scheduled for summer and December 2025.
Why Are Banks Closing Branches?
The reason behind the shutdowns of bank branches is the overall trend of banks reducing their physical presence. Over the years, many top banks in the U.S., including Bank of America, have been trimming down their branch networks. This shift is mainly due to the increasing popularity of digital banking, with more consumers choosing to manage their finances online through mobile apps.
Since 2018, an average of 1,646 branches close every year, according to fintech company Self Financial. California has seen the highest number of closures in the past decade, with 1,114 branches shutting down. Florida follows closely behind with 1,091 closures. Additionally, in March of 2025 alone, at least 32 banks closed nationwide, including major players like Bank of America, JP Morgan Chase, and Wells Fargo.
Will Physical Bank Locations Disappear?
Experts predict that if this trend continues, we could see the complete extinction of physical bank locations by 2041. The rise of mobile banking, which allows users to deposit checks, transfer money, and even invest through banking apps, means there is less need to visit a branch. Many Americans now believe that the traditional banking system is outdated. In a recent survey, over 69.9% of Americans stated that they think the banking system needs to change.
Banks Restructure to Stay Profitable
Bank of America is not the only bank making changes. Flagstar Financial, one of the largest banks in the U.S., is also shutting down branches as part of its effort to restructure. Flagstar plans to close at least 60 branches by the end of 2025, with New York losing the most locations. This move comes after the company reported a net loss of $845 million for 2024. Flagstar is aiming to reduce its operating costs by cutting rent, maintenance, and utility expenses associated with maintaining these branches. The bank hopes these efforts will help it return to profitability by the fourth quarter of this year.
The Changing Landscape of Banking
These closures highlight the shift in the banking industry toward more digital solutions. Banks are rethinking the need for large branch networks as technology makes it easier for customers to access services online. At the same time, banks are evaluating the cost-effectiveness of keeping certain branches open when customer traffic is low. This trend is likely to continue as digital banking continues to evolve and gain popularity.
Bank of America’s decision to close 19 branches is just one part of a larger trend within the banking industry. The shift toward digital banking and the closure of physical branches is expected to continue, possibly leading to the end of traditional bank locations in the future. As more customers prefer online banking, it’s clear that the banking landscape is undergoing a significant transformation.
