Scott Rasmussen's Number of the Day for September 20, 2017
The Number of the Day columns published on Ballotpedia reflect the views of the author.
September 20, 2017: Bank of America was hit hard by the 2009 financial crisis and has closed 1,597 bank branches over the past eight years.
The Wall Street Journal reports this as a major strategic shift “to rekindle sagging profits and focus on major metropolitan areas.”[1] One example given is that the bank shut all of its branches in Indiana a few years back. This year, it will be opening a new branch in Indianapolis while ignoring the rural areas and small towns of the Hoosier State.
Back in 2009, Bank of America had branches in 725 U.S. counties. By 2016, that had fallen to 472 counties.
While the financial crisis may have prompted Bank of America’s specific move, the underlying trend is being driven by new technology. In my recent book, Politics Has Failed: America Will Not, I noted that “just about everything you used to do at a local bank branch can now be done on your smartphone. In fact, the only thing your phone can’t do is issue paper money. But that doesn’t matter so much when you have phones, digital wallets, and credit cards to pay for what you need.”
These changes raise questions about whether we need branches at all. In my book, I highlight this disruptive reality as “a prime example of a good change being achieved through a hard transition.”
Fintech companies will provide consumers with more choices and fewer hassles.
| “ | But that transition will be costly for those who lose their job and for the banks that need to unload tremendous amounts of real estate assets. The ripple effects will spill over and hurt the commercial real estate market as well. As branches are closed, hundreds of millions of square feet of commercial space will become available. In some communities, the closing of a local bank branch may be the final straw that dooms a downtown area. Eventually, the benefits will outweigh the costs, but the process of change is always difficult.[2] | ” |
| —Scott Rasmussen, Politics Has Failed: America Will Not | ||
It’s important to clearly recognize that all this change is not coming from politicians or regulators. It is simply another case of the culture leading and the politicians lagging behind.
Each weekday, Scott Rasmussen’s Number of the Day explores interesting and newsworthy topics at the intersection of culture, politics, and technology.
- September 19, 2017 – 60 percent of second-generation Mexican immigrants describe themselves as typical Americans
- September 18, 2017 – 64 percent of Americans have positive view of police
- September 15, 2017 – 37 percent of Americans can’t name First Amendment rights
- September 14, 2017 – 956,597 cruise industry jobs serving 26 million passengers
- September 13, 2017 – 27 statewide ballot measures this year, lowest total since 1947
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Columns published on Ballotpedia reflect the views of the author.
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See also
Footnotes
- ↑ The Wall Street Journal, "How Bank of America Ditched 1,597 Branches Across the U.S.," September 17, 2017
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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