A Massive Bank Is Now Unfortunately Closing in Michigan

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Written By Blue & Gold NLR Team





Michigan is grappling with a surge in bank branch closures, driven by the increasing shift towards online banking and challenging operating conditions faced by financial institutions. A recent report from S&P Global Marketing Intelligence reveals that Michigan witnessed a net loss of 247 banks last year, ranking second only to California, which reported 269 closures. This article will delve into the causes and ramifications of this trend, as well as its effects on local communities and customers.

Causes of bank branch closures

One of the primary drivers behind the closure of bank branches is the growing preference for mobile and digital banking among consumers, particularly heightened during the COVID-19 pandemic. Many customers favor the convenience and safety of conducting banking activities from their homes or electronic devices rather than visiting physical locations. This shift diminishes the necessity and demand for brick-and-mortar branches, known for their high maintenance and operational costs.

Another factor contributing to bank branch closures is the prevailing low-interest rate environment, which exerts pressure on the margins and profits of banks. In response, financial institutions must reassess their expenditures and enhance efficiency, often resulting in the consolidation and streamlining of their branch networks. A notable example is the 2021 merger between Huntington Bancshares Inc. and the former TCF Financial Corp., leading to the closure of 197 offices, including 98 within Meijer stores across the state.

Ramifications of bank branch closures

The closure of bank branches carries significant consequences for both financial institutions and their customers. For banks, shutting down branches can yield cost savings, enhance performance, and allow a focus on core competencies. However, it may also diminish visibility, customer loyalty, and market share. A delicate balance must be struck between physical and digital presence, necessitating strategies to retain and attract customers through alternative channels and services.

Customers, on the other hand, experience both positive and negative effects due to bank branch closures. The positive aspects include the convenience, speed, and security offered by online banking, with additional features and options compared to traditional banking. Conversely, challenges such as a lack of access, personal service, and trust may arise. Certain customers, especially older individuals, those less adept with technology, or those residing in rural areas, may prefer or rely on face-to-face interactions and physical transactions. Moreover, bank branch closures can impact the local economy and community, resulting in reduced employment, tax revenue, and social capital.


The closure of bank branches is an ongoing reality and trend likely to persist in Michigan and nationwide. As the banking industry adapts to changing consumer preferences and market conditions, both banks and customers must adapt and navigate the consequences. While online banking provides numerous advantages and opportunities, it also presents challenges and risks. Striking the optimal balance between physical and digital banking is crucial, ensuring that the banking needs and expectations of all customers are met.

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