American bank holding company PNC Financial Services Group has decided to shutter 280 branches by the end of 2021, in the wake of the Covid-19 pandemic.

Initially, the bank had planned to close 80 to 90 branches in 2020 as part of its aim to boost digital sales. However, the ongoing pandemic has accelerated this plan.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

At a virtual conference hosted by Barclays Capital, PNC chairman and CEO William Demchak said that it would close 160 branches this year and 120 branches in 2021.

These cuts represent 12% of the bank’s nearly 2,300 branches, according to its financial data.

Demchak said: “You will see us continue to thin out our network. For that to work, your digital sales have to pick up at a pace that offsets the sales you would get at the branches you are closing. So far, that is happening and then some.”

The pandemic has led more consumers to adopt online banking. As a result, banks are launching digital banking products and services and cutting down their branch network.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

PNC is opening quasi-digital “solutions centres” in the place of few branches, where customers can consult with staff while using mobile workstations, ATMs and kiosks.

Demchak said that the bank has so far opened 13 centres, with plans to open 12 this year and 25 next year.

Demchak added: “What Covid has done for us is it has showed us where to prioritise investments.”

At the same conference, KeyCorp chairman and CEO Chris Gorman also said that its retail banking arm Key Bank will trim its branch network.

Key Bank currently has 1,077 branches in the country after already closing 61 branches last year and 21 branches this year.

Gorman did not disclose how many branches would be permanently shut.

Associated Banc-Corp, a bank holding company, is also planning to close or sell 21 branches, representing 8% of its branch network.