It seems like Wells Fargo, a goliath in the banking industry has taken it’s fair share of hits from the recent scandal to what is now a discerning move towards closing 450 branches by the end of 2018. Wells Fargo operates the largest branch network in the United States standing at 5,977 branches. This could possibly be a direct correlation of poor judgement on Wells Fargo side as American’s just prefer the convenience of online and mobile banking this day and age.
Wells Fargo Bank Closes 450 Branches By End of 2018:
Reiterating that I said that this outcome could’ve been a direct correlation of Wells Fargo poor judgement. This can also be derived from the Wells Fargo Fake Account scandals with rising legality and compliance cost in play as well as a significant declination in customers within the outreach of 2017. Again, American’s just prefer the convenience that comes from online and mobile banking now a days and closing off some branches should be the best decision for Wells Fargo right now.
Branches are just too expensive to operate and carelessly being ‘laissez-faire’ towards the ordeal of branch declination just wasn’t a smart move for Wells Fargo. I mean, taking a look into 2012, Wells Fargo’s branches declined by just 2% comparative towards Chase’s branch network shrinkage at 9% and even Bank of America at 15%.
With the 450 branches taking a toll towards 2018, Wells Fargo stated that they would just move employees that are having their branches taken down to a adjacent Wells Fargo branch. It’s not in my power to say that this is a good move, since ultimately, I think it should take a minimum of 900 branches or more just to achieve a certain sense of sustainability.
Conclusion:
The banking goliath, Wells Fargo is looking to close 450 of their branches by the end of 2018. These moves are attributed towards the sense that branches aren’t as profitable as it used to be, considering that online and mobile banking just completely revolutionized banking in general. Now, whether 450 branches is suitable enough to make a significant difference in providing sustainability is ‘iffy’ if you ask me. Branches are just too expensive to operate 5 minutes away from an adjacent branch. Don’t forget to check out our complete list of Credit Card Promotions today!
