Citizens Bank Closing Branches in Seven States Due to Shifting Habits

2 hours ago7 min read1 comments

The steady retreat from physical banking continues unabated, with Citizens Bank becoming the latest institution to announce a significant consolidation of its brick-and-mortar presence. Following closely on the heels of TD Bank's plan to shutter over 50 locations, Citizens has disclosed filings indicating the closure of at least 14 branches across seven states, a strategic pullback scheduled for early 2026.This is not an isolated event but rather a calculated response to a profound and permanent shift in consumer behavior. A spokesperson for the bank confirmed to Fast Company that this is part of an ongoing review of 'customer banking patterns,' a euphemism for the stark reality that foot traffic has been in a structural decline for years.The rationale is pure Wall Street logic: as transactional activity migrates en masse to digital channels, the return on investment for maintaining expensive physical real estate diminishes. The math is simple—fewer new accounts are opened in person, and the cost per transaction at a teller window is exponentially higher than on a mobile app.Citizens Bank is not merely closing doors; it is actively reallocating capital. The bank reported a 14% growth in its retail operations since 2020, a period coinciding with the pandemic-induced acceleration of digital adoption, and has simultaneously bolstered its mobile offerings with features like a refreshed direct deposit experience and streamlined payment updates.This dual-track approach—pruning the physical network while fertilizing the digital one—is a textbook response to evolving market dynamics. With nearly $220 billion in assets and $175 billion in deposits, Citizens Financial Group is a behemoth navigating a sector-wide transition.Its most recent earnings report, showing a Q3 2025 net income of $494 million and an EPS of $1. 05, alongside a stock (CFG) that has climbed nearly 20% year-to-date, provides the financial cushion to execute this strategy from a position of strength.The closures, impacting five branches in Ohio and two each in Massachusetts and New Hampshire, with single locations shuttering in Michigan, New York, Pennsylvania, and Vermont, represent a strategic concentration on its core Northeastern footprint. This mirrors a broader industry trend where regional banks are optimizing their networks not for blanket coverage, but for profitability and strategic fit. The long-term consequence is a redefinition of the bank branch itself—from a ubiquitous utility for everyday transactions to a specialized hub for complex financial advice and wealth management, leaving the routine to the algorithms in our pockets.

#Citizens Bank

#branch closures

#retail banking

#digital transformation

#Ohio

#featured