Five bank branches in same state set to close for good in October and customers warned to locate their money

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BANKS have worked to digitize their assets, leaving behind brick-and-mortar shops across the US.

In New York State, five more bank branches made it to the chopping block in September as banks continue their digital revolution.

Five bank branches in one state are set to close by October Credit: Getty

In the week ending on September 2, two banks reported they would be shuttering one branch each in filings to the federal government.

Bank of America announced it would shutter a location in Pelham Manor while Newtek Bank announced a closure in Flushing, Queens.

Another filing the week later showed three more banks set to close in the state.

Webster Bank filed to shutter a Scarsdale location, First National Bank of Long Island is closing a branch in Manhasset, and a Citizens Bank location will close in East Northport.

The locations are expected to close by the end of October.

Banks are mandated to give customers 90 days' notice about a bank closure in federal filings.

The closures come after years of bank branch closures as financial institutions move to an increasingly digitized platform.

DIGITAL REVOLUTION

Bank executives have announced plans to close dozens of branches in the US and increase their digital footprint.

After a recent closure, Santander Bank wrote that it was shuttering locations based on customer preference.

"Like many industries, our customers’ preferences have changed, with more customers choosing to bank with us online," the company wrote.

"Therefore, we are reimagining the customer and employee experience by simplifying our processes, refining our branch footprint, and increasing our investment in digital capabilities to align with the evolving needs of our customers."

After closing branches and ATMs, Associated Bank also said customers increasingly use digital apps, minimizing the need for brick-and-mortar locations.

"The consolidations align with an industry-wide trend, which includes consumers’ adaption to digital banking, a smaller branch footprint and lower frequency of walk-in traffic," the brand said to the Milwaukee Business Journal.

FUTURE OF BANKING

Over 1,100 bank branches have shuttered this year, according to Crowdfund Insider.

The shift to shutter locations and digitize bank operations has concerned lawmakers in the US.

A large portion of the bank closures have occurred in medium-income and minority-majority communities.

One-third of the bank closures happened in minority neighborhoods, according to a study from the National Community Reinvestment Coalition.

The study also found that closures may lead to larger banks dominating the industry.

"The Great Consolidation resulted in a few large megabanks dominating the market while small community banks disappeared," the study concluded.