Deutsche Bank, PNC Plan To Reduce Brick-And-Mortar Bank Branch Footprints

Banks from the United States to Europe are closing bank branches as consumers embrace digital banking amid the pandemic. These are just some of the financial institutions that are reducing their brick-and-mortar footprints:

Deutsche Bank intends to shutter 20 percent of bank offices in Germany, the Financial Times reported. The financial institution said per the report that it would shutter approximately 100 locations throughout the nation, which would shrink its domestic offices to roughly 400. As of last year, Deutsche has been undergoing a restructuring effort that encompasses a decrease of its balance sheet, 18,000 employment reductions by 2022 and less investment banking activity. Deutsche’s move to decrease its number of locations comes after news that Commerzbank would not open 200 offices again that were closed amid COVID-19.

And Handelsbanken will reportedly shutter nearly 50 percent of its Swedish offices by the close of 2021, the Financial Times reported. The company recently said it would shutter 180 out of 380 offices in the country, while putting $115 million toward its online client offering and eliminating 1,000 positions. Handelsbanken is reportedly among the top advocates in Europe for the importance of keeping brick-and-mortar locations and is renowned for its “church spire principle” through which an office manager should have the capacity to view all their clients from a tower’s apex.

In the U.S., PNC Bank plans to reduce the count of its branch offices through next year, Fox Business reported. William Demchak, the chairman and CEO of PNC, said per the report that the institution is set to shutter 280 offices by next year. Approximately 160 offices will close by the conclusion of 2020 and a further 120 are scheduled to shutter in 2021. The company has opened a minimum of 13 “solutions centers” in places such as Nashville, Tennessee and Dallas that provide an alternative to the usual bank office. The financial institution has just over 2,250 offices, according to a U.S. Securities and Exchange Commission (SEC) filing per the outlet.

And Pennsylvania-based Northwest Bank announced the closure of 40 branches throughout its portfolio, YourErie reported. The closings comprise approximately one in five of the firm’s branches in New York, Pennsylvania, Indiana and Ohio. Northwest Bank President and CEO Ronald Seiffert said in a statement, as reported by the outlet, “Our customers’ banking preferences continue to evolve to favor more digital banking experience and the COVID-19 pandemic has magnified and accelerated these preferences.” The report noted that the Lake City, Grandview Plaza and Wattsburg offices are set to shutter in mid-December.

In addition, Illinois-based Byline Bank is to shutter 11 offices from the beginning of next year, Banking Exchange reported. The bank indicated the decision would save a forecast $4.3 annually from that time, while the impacted closings are close to another one of its branches. “The changes we are making to our retail branch network reflect the accelerating adoption of digital banking channels by our customers that has occurred during the Covid-19 pandemic,” President and CEO Alberto Paracchini said, as per Banking Exchange. The financial institution did not identify the offices impacted by the move per the report.