Bank branches are vanishing from rural America. Here's why that's a big problem

[Yo_Mama_Been_Loggin]

Rural Americans are losing access to bank branches. For some, that may be putting cheap and convenient financial services out of reach, according to a new study.

The shift is driven in large part by the rising popularity of online banking. But, while younger, web-savvy customers have adapted quickly to online banking, the changes have been isolating to less wealthy, rural Americans, research shows.

Overall roughly half of U.S. counties lost bank branches between 2012 and 2017, researchers at the Federal Reserve found. While urban and rural counties both lost branches at roughly the same rate — seeing an average 7% decline — the effect was more pronounced in rural areas, the researchers said, because rural counties had many fewer bank branches to begin with.

About 40 rural counties qualified as “deeply affected,” according to the Fed, meaning the county had 10 or fewer branches in 2012 and had lost at least half of those five years later. Fed researchers found there are also 100 banking markets, most of them rural, that went from containing at least one bank’s headquarters to containing no headquarters, due to industry consolidation.



https://www.msn.com/en-us/money/markets/bank-branches-are-vanishing-from-rural-america-heres-why-thats-a-big-problem/ar-BBXnpTY?li=BBnbfcN

[Dem_4_Life]

1. This is also due to millennials wanting to do banking online.

My credit union is closing a bunch of branches and it's so frustrating because I would much rather go to an actual branch to deposit money, etc. I also work in the banking industry and heard last year about the increase in closures due mostly to the cost of branches that no one goes to since they want to do everything online. Although that does make dinner sense I still blame Trump's economy. It's so sad.

[Wounded Bear]

2. Not just millenials, this boomer never goes to a bank office. Well, almost never....

but I bank online with a credit union, and occasionally I hit ATMs for walking around cash. Even with that, my ATM card works in virtually all businesses now.

[Kaleva]

3. I'm a boomer and like to do banking on line. It's a drive to get to the nearest bank.

[Hoyt]

5. This boomer has been to a bank once in past two years, to deposit some cash from

selling a musical instrument.

I even deposit checks over my phone. Why drive to a bank, get out, stand in line, have to act normal, etc.

There are upsides and downsides to just about everything nowadays.

[ananda]

4. I'm a boomer and I use online banking.

I visit a meatspace bank only occasionally,
meaning hardly ever... maybe 3 or 4
times a year.

[Garrett78]

6. 7% is 7%

While urban and rural counties both lost branches at roughly the same rate — seeing an average 7% decline — the effect was more pronounced in rural areas, the researchers said, because rural counties had many fewer bank branches to begin with.

That doesn't make any sense to me. Sure, there are fewer banks in rural counties, but 7% is 7%. In order to lose 7%, there would need to be at least 14 banks in a given county. Losing 7% would then mean there are 13 remaining banks. That seems like quite a few banks.

Losing at least 50% is certainly significant for those "deeply affected" counties, but the above excerpt is pretty silly.

[Wellstone ruled]

7. Well this old Geezer has not been to our

Credit Union for some twelve plus years. Direct Deposit and having a National Bank as our CU host for ATM needs,like depositing any checks or cash is down right nice.

Here in Nevada,if you had checked the associated map,in Lincoln County,there is only one or two ATM's and zero Bank Branches. People and Business Owners have to travel close to ninety miles one way to the nearest Bank.

Nevada State Bank announced two weeks ago,that they will be closing nine Branches in Southern Nevada by January first. Just the start.