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It was difficult for many companies because Covid forced many online and online in 2020, while reshaping how consumers shop and spend.
Among the most difficult retailers and banks, which were largely dependent on the face -to -face relationships, making brick sites and mortar shells necessary. However, at the present time, thanks to technological developments, more people and banking services are shopping online, making these physical sites less important.
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As a result, many banks rethink their horizons, close sites, and re -imagine the remaining spaces, including the fourth largest financial institution in the country.
Justin Sullivan & Sol; Gigantic
Banking services go through a tremendous change
The Internet has not reshaped the retail. A seismic shift has also been enabled in how banks have done business.
The ability to deposit money and withdraw it without using a branch cashier, borrowing money, and paying interest on loans through banking websites and applications, prompted many banks to integrate, integrate or close once popular branches.
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The number of American commercial banks decreased by almost 50 % between 2000 and 2020, as it became easier for large national banks such as Bank of America and Wales Faru competing against smaller local competitors.
The branches of banks that remain open are completely different today from what they were in the past.
Instead of long cashier lines and waiting for a longer period on the day of payment, most of the cashier stations have been replaced by the ATM with only a few employees, and most of the examination is deposited by direct deposit.
Banks also provide self -service kiosks and other technology within their branches, which allow customers to access banking services via the Internet instead of dealing with a cashier face to face.
The editing space left by the removal of the cashier lines has been reused to accommodate financial consultations such as money management or lending and less than transaction services.
It is not surprising, that these changes mean that banks often need much less space than they were in the past, causing focus on smaller sites or closed branches.
The economy created wind winds
The banks did not help the Federal Reserve to embrace the monetary policy of hawks to fight fugitive inflation in 2022.
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The Federal Reserve’s decision to quickly increase the FBI’s money rate to reduce economic activity to slow down inflation not only request a loan, but also send the value of the treasury bonds kept on bank budgets.
The risk of having to mark the bond governor to the market in much lower assessments led to the failure of the SEFB Valley Bank (SVB) on March 10, 2023, amid the largest bank for one day in the history of the United States, according to the Brookings Institute.
Two days later, the signing bank failed due to similar concerns. Then, on May 1, 2023, the First Republic Bank failed, which prompted the acquisition of the last minute by JP Morgan Chase.
The banks have amended the formation of bonds on the public budget since then, but additional challenges have emerged.
The housing prices remain high and combined with high mortgage rates, and the demand for a mortgage loan has been depressed. The industry also witnessed the similar opposite winds in automatic lending, and recently, the rise in credit card edits and virtual assumptions due to borrowers with financial hardship.
Wales Vargo to close more than ten branches
The major national banks are not easy for the directions of the banking industry, as the main players, including Wales Vargo, return their plans for brick branches and mortars.
Wales Vargo is the fourth largest bank in the country, with a origin of about $ 1.7 trillion. The bank runs more than 4000 branches in 36 states, with a large presence in California, Texas and Florida.
The company, which was one day, darling Wall Street, fought with controversy.
In 2020, she agreed to a fine of $ 3 billion for a scandal resulting from the unrealistic sales targets that pressured employees to open fake accounts in customer names between 2002 and 2016. The reverse reaction led many investors long ago, including billionaire for investor Warren Buffett, to Sean possessing Wales Fargo shares.
Berkshire Hathaway from Pavite owned about 500 million shares in Wales Fargo in 2016, which represents about 10 % of the company. However, after the scandal, Oracle of omaha has sold his share since then, which led to the elimination of his last shares in 2022.
CEO Charlie Charf works to restore confidence, abandon companies, transfer revenues towards fees, and reduce expenditures, including the size of the workforce.
“In general, the expenditures decreased a year ago, as they benefited from the decrease in FDIC and the service team as well as the impact of our efficiency initiatives, which helped increase the number of employees’ number every quarter since 2020, “Scharf said at the company’s fourth -quarter profit conference.
The company closed 92 branches last year, and despite the decrease in the average loans, Wells Fargo has reported a net income of $ 18.6 billion or $ 5.43 per share in 2024.
The profit winds indicate that the bank will not be ashamed of its strategy, and this is not surprising, and this means that more of its sub -sites will disappear in 2025.
Wells Fargo has documents to the Currency Observer Office (OCC), which indicates that the next 14 branch is closed or will be closed soon:
- 321 University Drive, College Station, Texas
- 100 Nile Kinnick Dr, N. ADEL, IOWA
- 1930 North Loop 1604 E, San Antonio, Texas
- 7928 Fort Hunt Road, Alexandria, Virginia
- 3901 E. Grant RD, Tucson, Arizona
- 225 108th Avenue Ne, Bellevue, Washington
- 7801 NEUSE RD, RaleIight, North Carolina Falls
- 1600 Montgomery Highway, Hoover, Alabama
- 590 Hunt Club Boulevard, Apopka, Florida
- 652 N. La Brea Avenue, Los Angeles, California
- One main street, George, Utah
- 2611 Cedar Springs Road, Dallas, Texas
- 687 S. Coast Highway 101, Suite 151, Encinitas, California
- 25100 FM 2100, Hoffman, Texas.
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