EL PASO, Texas (KTSM)- With online and mobile banking increasing in popularity, physicals banks struggle to stay relevant and keep their doors open.
El Paso ranks number 13 on a list of 24 cities where it is hardest to visit a physical bank, with only approximately 12 banks for every 100,000 residents.
According to a data analysis by SmartAsset, over the past five years, the number of branch locations in the country has declined by 7 percent.
While online and mobile banking provides easier service, bank branch locations continue to be an important resource and the preferred banking option for some.
In a recent Federal Reserve report, researchers note that the shift to digital banking channels is occurring more gradually for older individuals, those with lower incomes or fewer years of formal education and inhabitants of rural communities.
According to Deloitte survey results, 65 percent of Americans prefer a physical bank when applying for a mortgage, and 58 percent prefer one when opening a checking account.
The analysis discovered that the number of branches declined in 49 out of the 50 states countrywide. The states experienced declines over the past five years, with 26 cities having decreased greater than the national average of 7 percent.
According to SmartAsset, in 2014, there were a total of 94,725 federally insured banks in the country or about 30 for every 100,000 people.
In the past five years, more than 6,600 banks have closed, and in 2018, there were just 88,075, or fewer than 27 banks for every 100,000 people.
Many large banks, such as JPMorgan, Chase Bank, and Wells Fargo, have closed down many locations. However, Bank of America closed down 620 locations, the greatest number of local offices a large bank has closed.
Over the past years, some cities have seen more bank closures than others. According to the results, Arlington, Texas is the hardest place to visit a physical bank, while El Paso ranked number 13.
The struggle of finding a physical bank may continue; the Federal Deposit Insurance Corporation’s Bank Find tool allows users to find out if their bank is FDIC-insured, locate other branches, find out if your bank has merged or been acquired and review your bank’s history.