U.S. Bank has fast-tracked the closure of seven of its branches in Eastern Idaho, including sites in Malad and Blackfoot, as it adapts to the growing dominance of digital banking. Originally slated for closure later this year, these branches were shuttered ahead of schedule between April and May 2025.
This strategic decision underscores a national trend among financial institutions shifting their focus from brick-and-mortar operations to digital-first models. In the first quarter of 2025 alone, 336 bank branches were closed across the United States, highlighting the sweeping changes in consumer preferences.
Digital demand drives transformation
Banks are increasingly prioritizing online platforms and mobile apps as more customers opt for digital banking services over traditional in-person visits. U.S. Bank, one of the country’s largest financial institutions, has acknowledged this shift as the main driver behind the accelerated closures.
A spokesperson for the bank explained that customer engagement with digital services has skyrocketed in recent years. This evolution has prompted a reevaluation of the bank’s physical presence, particularly in rural and low-traffic areas.
“The way people bank has changed dramatically,” said a regional manager. “More customers are using digital tools to handle their finances efficiently, and we’re adapting our services accordingly.”
Locations affected
The seven branches closed in this wave include those located in Malad, Montpelier, Preston, Blackfoot, Orofino, Wendell, and Mackay. Each of these towns, situated in Eastern Idaho, previously relied on local branches for daily banking needs.
Local residents were notified in advance and provided with guidance on transitioning to online banking or accessing alternative branches nearby. U.S. Bank also offered support resources for customers unfamiliar with digital platforms.
A national shift in banking strategy
U.S. Bank’s move is part of a broader industry trend. Nationwide, major financial institutions are aggressively consolidating their physical operations to invest more heavily in digital infrastructure.
In the same quarter, other banking giants followed suit—closing branches and redirecting investment into app development, online security, and digital customer service. Analysts say the pace of closures has accelerated sharply in the past two years.
The shift is not merely reactionary—it’s strategic. By reducing the overhead associated with maintaining physical locations, banks can allocate more resources toward enhancing digital capabilities and offering seamless user experiences.
Community concerns
Despite the technological benefits, the rapid disappearance of local bank branches has sparked concerns, especially in rural communities. Residents in small towns often rely on personal relationships with their local bankers, particularly when navigating loans, financial planning, or business transactions.
For older adults and those without reliable internet access, the transition to digital-only banking presents a challenge. Community leaders have voiced worries about financial exclusion for vulnerable populations.
“It’s not just about convenience—it’s about access,” one community representative said. “Not everyone has the ability or comfort level to bank online. These closures create real obstacles.”
Impact on employees
Employees affected by the closures were offered options to transfer to other locations or explore remote work opportunities within U.S. Bank. The company stated that it remains committed to supporting staff through this transition.
The financial services industry at large has been adapting not only to technological change but also to evolving workplace models. Hybrid roles, customer service from home, and virtual financial advising are becoming more common.
Looking ahead
Industry experts predict that if current trends persist, the traditional bank branch could become a rarity within the next two decades. Some estimates suggest the last U.S. bank branch could close as early as 2041, marking a dramatic end to an era of in-person banking.
Still, most major banks assert that while the number of branches may decline, physical locations will continue to exist in urban centers and key markets for the foreseeable future.
For customers in Eastern Idaho, the shift is already a reality. As they adapt to app-based services and remote financial tools, their experience reflects the direction banking is heading nationwide.