Citizens Bank to Close Over 100 In-Store Branches, Expand Standalone Locations
The bank plans to replace supermarket outposts with approximately 50 to 60 new full-service branches over the next decade.
Citizens Bank is planning to close between 100 and 120 of its in-store branches, primarily located within supermarkets, as part of a ten-year strategic plan. The parent company, Citizens Financial Group, announced the closures during a recent earnings call. These branches are situated in stores such as Acme, Giant, and ShopRite.
While reducing its in-store presence, the bank intends to open 50 to 60 new standalone, full-service branches. These new locations will be smaller, ranging from 2,000 to 3,000 square feet, and will emphasize advisory services for small business and wealth management clients. This shift aims to enhance customer service and drive deposit growth without significant capital expenditure on de novo branches outside the bank's existing footprint.
In select markets, including California, Florida, New York, and particularly Philadelphia where Citizens holds a significant deposit market share, the bank will implement a strategy that includes in-store branches equipped with virtual assistant kiosks. This approach seeks to accelerate retail deposit growth by repositioning branches for strength and future expansion.
Citizens Bank currently operates approximately 1,000 branches across 14 states. The move away from supermarket branches mirrors a trend seen among other financial institutions, such as PNC Bank and U.S. Bank, which have also scaled back or closed similar locations. This strategic adjustment is largely attributed to evolving consumer preferences and the increasing adoption of mobile banking and digital platforms. TD Bank, for instance, closed over 50 locations last year, citing a focus on technology-driven digital banking and personalized advisory services.