Bank of America Closing 10% of its Branches
The LA Times reports on B of A’s plan to close up to 10% of its branch locations:
Bank of America spokesman James Mahoney told the Associated Press today that the nation’s largest bank is working on a branch closure plan. The strategy was discussed by Chief Executive Ken Lewis and another bank executive in an investors meeting last week in Charlotte, N.C., where the bank is based.
Such a move would represent a retrenchment for the giant bank, which over the last two decades has expanded aggressively, giving it coast-to-coast reach. Analysts said closing branches would save the bank money but not necessarily reduce customers’ access.
“The fact is that an increasing number of consumers, especially younger ones, and businesses rarely go to branches anyway. By maintaining and growing its mobile and online offerings, BofA should be able to retain such consumers as customers,” said Red Gillen, senior analyst with Celent, a Boston-based financial research and consulting firm.
Not to mention that B of A has grossly overexpanded during the past 8 years, making this a move of necessity.