TD Bank has announced it will permanently close 39 of its branches across 11 states, citing a growing shift in customer behavior toward mobile banking and a recent $3 billion settlement with the U.S. Department of Justice over alleged anti-money laundering violations.
The closures are scheduled to take place by June 5, and the bank has issued a recommendation for customers who rely on in-person services to locate their nearest TD Bank location. The financial institution emphasized that it remains committed to supporting affected employees and ensuring continued service to customers through its remaining branches and digital platforms.
“We’ve made the difficult decision to eliminate roles that no longer align with our business model,” the company said in a statement shared by The Street. “We’re committed to supporting impacted colleagues fairly and respectfully, and will provide resources to help with the transition.”
The list of branches closing includes locations in Connecticut, Florida, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, and Virginia. Some notable closures include:
- Connecticut: 1289 Foxon Road, North Branford; 215 High St, Torrington (Torrington Commons)
- Florida: 1590 South Nova Road, Daytona Beach (Beville Nova); 500 Collins Avenue, Miami Beach (South Beach 5th Street)
- New Jersey: 85-107 Pompton Avenue, Cedar Grove; 191 E Route 70, Marlton
- New York: 125 Park Avenue, New York (42nd & Madison); 451 Lexington Avenue, New York (45th & Lexington)
The branch closures are linked to a $3 billion settlement TD Bank reached with the U.S. Department of Justice over violations of anti-money laundering regulations, according to a March report by Newsweek. Despite these closures, the financial institution assured that it will continue to operate its remaining locations and provide mobile banking services to ensure uninterrupted access for its customers.
As consumer habits continue to evolve, the banking industry is not immune to the broader trend favoring digital services. Almost every consumer-facing industry seems to be shifting, as more Americans prefer to shop online rather than visit brick-and-mortar locations. This change is evident in various sectors, including grocery shopping, clothing, and electronics, with e-commerce now accounting for over 17% of all sales in the U.S.
While the natural reaction to this shifting consumer habit might be to switch all business to online, few retailers have it that easy. Many legacy businesses either still rely on brick-and-mortar operations for some portion of their sales or must maintain a physical footprint due to customer expectations. Banks are one such business.
Large banks like TD Bank have learned this lesson and are adapting their strategies accordingly. The closures are part of a broader trend, as other banks are also reevaluating their branch networks. For instance, Santander Bank has announced it will close 95 locations in the U.K. and 18 in the U.S., primarily in New England.
“Santander Bank continues to refine its branch footprint and retail presence, including introducing new formats and investing in digital capabilities to better accommodate our customers and meet their evolving needs,” a Santander spokesperson said regarding the closures.
As the banking landscape transforms, institutions are focusing on enhancing their digital capabilities while still recognizing the importance of maintaining a physical presence. This dual approach aims to meet customer expectations while navigating the challenges posed by regulatory compliance and changing consumer behavior.
For many customers, the need for in-person banking services remains, whether it's cashing a check or obtaining a loan. However, the shift towards mobile banking is undeniable, prompting banks to rethink their operational models.
The closures at TD Bank reflect a significant change in how financial services are delivered, mirroring trends seen across various industries. As banks continue to adapt to these changes, they must balance the need for physical locations with the growing demand for online services.
In the wake of these changes, customers are encouraged to familiarize themselves with their nearest TD Bank locations and explore the various digital banking options available. With the ongoing evolution of banking, staying informed will be key for consumers navigating this new landscape.
