A new report shows banking deserts — neighborhoods with no bank branches nearby — are on the rise. From 2019 to 2023, the total number of U.S. bank branches declined by 5.6 percent, the number of banking deserts increased by 217, and the number of Americans living in banking deserts grew by 760,000.
Despite the overall trend toward online banking, older, disabled, and lower-income communities often rely on in-person banking. For people facing other barriers to banking services, having no bank branches nearby could limit opportunities to foster financial health and build wealth.
The report also examines how financial institutions in some communities are working to address the decline of retail bank branches.