Bank of America, Citigroup and JP Morgan have closed 389 outlets since the third quarter of last year. With the increase of mobile active users, more transactions are done through digital channels, and bricks and mortar outlets are no longer necessary. The cost of dealing with the business through digital channels is also far less than the network channel.

The Citibank report suggests that the Uber time of banks is coming. The physical outlets of banks will be eliminated. Mobile devices will become the main communication intermediary between customers and banks. This means that the bank no longer needs so many entities, including people working in it.

Existing banking branches will also be transformed. They will focus more on services that can only be done face-to-face, such as increasing more mortgage loans and investment experts, and banks will gradually become a place to seek advice.

Big bank closure of the United States

According to the third quarter financial report, the Bank of America has more than 6000 outlets before the financial crisis, and there are only 4629 outlets at present. The bank reduced 112 financial centres last year. The CFO Paul Donofrio of the Bank of America says the closure of the branch is part of the transition to autonomous electronic channels, mobile, online and ATM.

According to the third quarter earnings, the Bank of America now owns 21 million mobile bank active users, and 18% of the deposit transactions are completed by mobile services. Paul Donofrio said it would be better for both consumers and shareholders, and the cost of mobile transactions was only 1/10 on walking to branch trading.

Of course, it is not only the network, but many banks have started to lay off. In June, the U. S. bank said it plans to reduce more than 8000 jobs in the consumer banking division. The director of the retail bank of the Bank of America said it was part of the bank's cost reduction and resource resetting projects under the change of consumer habits.