The trend: TD Bank announced plans to close 51 branches across 13 states as customers continue shifting to digital banking. The closures are mostly in TD’s dense New England and mid-Atlantic footprint.

The bank noted last fall that its strategy now focuses on digital customer acquisition and greater adoption of its digital services.

Zoom out: Banks are redesigning physical branches around customer habits and preferences. Some of the largest banks are selectively opening or renovating physical branches while closing others as they adapt their branch footprints to target markets. Others are growing their footprints overall. The ROI is compelling when the physical branch drives brand awareness and converts potential customers into profitable relationships.

Branch turnover was high in 2025, though far below pandemic-era levels: US banks shuttered a net total of 339 branches as of December, versus a net total of nearly 3,000 in 2021. Raw costs, regulators’ requirements during mergers, and general footprint rationalization are driving the closures. In the meantime, some banks have considered reinventing the branch experience without a physical presence.

Implications for banks: The digital branch’s star has fallen since the pandemic, but it’s not extinct: In our Canada Mobile Banking Emerging Features 2025 survey, 38% of adult mobile banking users said they were “likely” or “very likely” to use a feature that enabled them to meet with a banker virtually.

There is a compelling cost and customer engagement advantage to offering face-to-face, branch-like services digitally. The staffing model for bankers is the same: For example, allow customers to select a personal banker in a physical or digital branch or offer real-time digital advice and guidance through online and mobile channels.