In a major shift within the French banking landscape, BNP Paribas has announced its plans to close approximately 500 branches across France by 2030. This decision marks a significant change for the country's largest bank, reducing its network from 1,500 to 1,000 locations. The decision reflects a broader trend in banking as institutions adapt to the evolving habits and preferences of their customers, who are increasingly turning to digital solutions.
This announcement follows reports that the bank’s new strategic plan for its Banque commerciale en France (BCEF) division is set to be unveiled on March 26, 2025. Employee representatives will be consulted before the official launch of the restructuring plan, which aims to better align the bank's physical presence with the way customers now prefer to interact with their financial services.
According to BNP Paribas’s director general, Jean-Laurent Bonnafé, the acceleration in branch closures—which will ramp up from the previous rate of 50 closures a year—is largely driven by decreased demand for in-person banking services. “The pace of closures will be dictated by our customers,” Bonnafé stated in a previous interview. As a result, branches that are used less frequently will be the first ones to shut down.
As part of this strategic overhaul, the bank is also planning to foster stronger ties with its digital subsidiary, Hello Bank!, which specializes in online banking services. This hybrid approach aims to meet customer needs through improved digital offerings while still maintaining physical locations for those who prefer face-to-face interactions.
This restructuring plan reflects the current state of the French banking industry, where an increasing number of clients prefer to manage their finances digitally rather than visiting traditional bank branches. According to recent studies, only 36% of customers now visit a bank at least once each quarter, a decrease from 41% a decade ago. This shift has prompted financial institutions across the country, including other major banks like the Société Générale and Crédit Agricole, to reevaluate their branch networks.
The plan to close 500 branches is the latest move in a series of adjustments that have seen numerous banks confront the challenges posed by rising competition from online-only banking alternatives. With the growing popularity of neobanks like Revolut and N26, traditional banking institutions must adapt or risk losing their customer base to these newer, more agile competitors.
Notably, this trend towards decommissioning branches isn't restricted to BNP Paribas alone. Other banks have similarly indicated plans to reduce their branch count as a countermeasure to the digital transformation sweeping through the financial sector. For instance, Deutsche Bank recently announced the closure of 50 branches and a reduction of 2,000 positions within its network. This trend illustrates a widespread transformation within banking sectors across Europe.
Despite these changes, BNP Paribas has promised that the restructuring will not result in widespread layoffs. Instead, the bank aims to manage employee transitions internally, providing options for redeployment to other areas of the business, particularly in digital services. Current employees affected by the closures may find new opportunities within the bank, preserving jobs during this challenging transition.
As clients adapt to this evolving financial landscape, many may find that their local branches will soon be consolidating or closing. BNP Paribas assures that any branch closures will be communicated to customers ahead of time, allowing clients ample time to adjust. Those impacted will also be encouraged to utilize digital platforms for banking needs moving forward.
This decision, although significant, does not signal the end of BNP Paribas’s presence in the market. Rather, it demonstrates the bank’s commitment to evolving with its customers and their changing expectations for banking services. With over 184,000 employees across its global operations and reported revenues of 45.9 billion euros in 2023, the bank remains a formidable player in the sector, poised to adapt to the digital era.
Founded in 1822, BNP Paribas has a long history in the banking industry, having evolved significantly over the centuries. The current closures reflect a necessary adaptation rather than a decline. As the industry shifts towards more digital solutions, banks like BNP Paribas aim to enhance customer experiences through better online services while maintaining a physical footprint that meets evolving client preferences.
BNP Paribas is taking a proactive approach to reshape its future, investing in digital innovation to ensure that it remains competitive in an increasingly digital world. The bank's commitment to customer service, even in the face of reducing physical locations, underscores its adaptability and foresight as it navigates these transformative times.
