U.S. Bancorp is planning to close hundreds of branches across the country over the next few years, amid a change in the way consumers are accessing banking services.
Andy Cecere, the CEO of the Minneapolis-based company, said the company plans to close "10 to 15 percent" of its branches over the next two years in a conference call after releasing its Q1 results.
That represents between 300 and 450 of the 3,000-plus branches U.S. Bank currently has across 25 states, most of which are found in the Midwest and the West.
U.S. Bank, the nation's fifth largest bank, is seeing a shift in consumer demand for in-branch banking, with increasingly more customers conducting their business online.
For example, a third of all its loans are now completed digitally, up from 25 percent a year ago, and 75 percent of mortgage loans are also completed digitally.
Up until last year, U.S. Bank had been preventing from major changes to its branch network as its anti-money laundering practices were under federal review.
But with that ending, Cecere says the bank will proceed with "branch optimization."
Over the next two years Cecere says he expects "a 10 percent to 15 percent reduction in our actual physical count of branches."
"We're going to open up some in places," we added. "We are going to be remodeling and changing the footprint. But the net of it will be down 10 percent to 15 percent."