and consolidate their branch networks in certain areas, such as those that were already seeing less foot traffic prior to the pandemic. customers to digital channels and set the stage for long-term usage. Amid closures and general stay-at-home measures, digital became the most accessible and convenient way for customers to manage their money.
Permanent branch closures would allow banks to offset losses incurred as a result of the pandemic. Major banks allocated billions of dollars to prepare for the economic fallout of the crisis. And because operating one bank branch is so costly—they an estimated $600,000 to $800,000 to run annually—this was one area banks could have turned to to cut significant expenses.
While these factors are still in play, we did not end up seeing the expected level of branch closures—due largely to regulatory influence. In July, the acting head of the Office of the Comptroller of the Currency