Physical bank branches are disappearing along with relationship banking. The Office of the Comptroller of the Currency (OCC) files state that the US lost a net total of 339 bank branches in December 2025. The S&P Global and Federal Reserve found that the US has been losing, on average, 1,600 bank branches per year.
Santander announced that it would be shuttering 44 branches in Q1 2026, noting a move toward digital banking. TD Bank plans to close 51 branches across 13 states as it aims to cut 10% of its brick-and-mortar locations. JPMorgan Chase announced 66 branch closures in late 2025. US Bank, Wells Fargo, PNC, Bank of America, Citizens Bank, Flagstar, and every other major banking chain are moving away from physical banking as people favor online convenience, and the government favors online monitoring.
Digital banking will continue to grow. Branches will continue to close. But do not confuse a trend with a solution. Convenience is being sold as innovation, yet what is really happening is the consolidation of financial power and the reduction of public access points.
Relationship banking was built on human judgment. Transactional banking is built on algorithmic approval. This is something I have warned about for years.
Under relationship banking, they lent you money but monitored your business and ability to repay. This imposed some rational constraints. Under the new transactional banking model, the New York bankers sought to repeal Glass-Steagall, and they have transformed into brokers, packaged loans, and resold them. They no longer cared about the borrower, for the motive is how they can sell it.
Under relationship banking, your local banker knew who you were. They understood your business, your family, your reputation, and your history in the community. Loans were not always granted because a formula said yes. They were granted because character and long-term trust mattered. The system was decentralized in practice, even when imperfect. Now you are reduced to a data profile.
A banker could vouch for a person based on their relationship and push through loan approval. With transactional banking, a model can reject the loan, and that’s the end of the discussion. One is local, and the other is centralized.
As governments move toward tighter financial surveillance, digital currencies, and automated reporting, relationship banking becomes an obstacle. It introduces flexibility into a system that regulators want to be rigid.
