Towns Reel As Banks Close Branches In Record Numbers : NPR - 0 views
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Banks have been permanently shuttering branches for years, but the number of closures hit a record in 2020 as the pandemic accelerated the move by many customers to online banking.
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And bank branch closures are especially affecting isolated neighborhoods in big cities or towns like Moorhead — a largely African American community in the heart of the Mississippi Delta.
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"The reality is, the vast majority of the activity that happens in a branch is not revenue generating,"
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poor communities, rural communities and areas with a high concentration of Black and brown residents have been hardest hit.
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"It's a good thing that banks are moving away from charging those kinds of fees, but it's a bad thing that they're moving away from serving those neighborhoods,"
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It's a trend that's unlikely to reverse now that the pandemic has pushed more customers to bank on smartphones and computers.
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Williams understands that for small towns a bank can be more than a place to cash a check. It can also be the place to catch up or gossip about what's going on around town.
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Even though a lot of banking can now be done online, an FDIC survey found that 83% of people still met with a teller or other bank employee at least once during 2019.
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"When you have young boys and girls riding by and seeing empty buildings, or that building which was once a bank is turned over to a payday lender, what message are we sending?" he asks. "Is my neighborhood not a priority?"