January 31, 2024
Let's Talk About It.
Many communities in New Jersey are concerned about the number of well-known and community-accessible banks closing throughout the state. There are several reasons why many banks are closing their brick-and-mortar buildings in New Jersey. One of the main reasons is the rise of online and mobile banking, which has made it easier for computer-savvy customers to manage their finances remotely without the need to visit a physical branch.
Additionally, the cost of maintaining and operating a physical branch can be quite high, which has led many banks to opt for more cost-effective digital solutions. However, it is important to note that not all banks are closing their physical branches, and some are still maintaining a physical presence to cater to customers who prefer face-to-face interactions. This trend of bank brick and mortar building being closed is not limited to New Jersey, but is happening nationwide.
On the flip side, not having a physical bank to walk into can certainly disenfranchise limited-computer-savvy consumers and older people. This is because citizens who may not be computer savvy or used to face-to-face service may find it difficult or uncomfortable to manage their finances online or through mobile apps. With a physical walk-in-bank, consumers may have access to services like in-person customer support, cash deposits, or check cashing. Additionally, some older customers may feel uncomfortable using online or mobile banking due to security concerns or a lack of familiarity with technology. (On a side note: God forbid if they need to disclose their SS# over the phone. Because it ain't happening.) This can make it difficult for these customers to access the financial services they need, which can be frustrating and stressful.
There's also the genuine issue of ATMs that cannot deposit cash. Or that get jammed easily by outside users. What then? Here's the skinny. A portion of ATMs are not equipped with the necessary hardware or software to handle cash deposits, additionally, some banks may have certain restrictions or limitations on which ATMs can accept cash deposits, so this can become a problem when citizens and residents who seek to cover a pending check with a cash deposit but miss the opportunity because of the before mentioned issues. This could lead to monstrous bank fees that could further ruin citizens' credit. So, the decision to close walk-in banks is less cut and dry than it seems. Overall, the closure of physical bank branches can significantly impact specific segments of the population who rely on these services to manage their finances.
The trend of banks closing can be pinpointed during the COVID-19 pandemic. During the COVID-19 pandemic, the Centers for Disease Control and Prevention confirmed the Novel Coronavirus in the United States in 2019. As death rates soared in 2019, the federal government enforced an official lockdown on March 12, 2020, that lasted until May 11, 2023. The shutdown happened because of the high number of deaths directly caused by the virus. Below is a chart provided by the New Jersey State Department of the Center for Health Statistics and Informatics concerning COVID-related deaths in N.J. (On a side note: Please remember that the information provided in the chart does not include all of the deaths in N.J. from COVID-19 between 2018 and 2023; this is why the data below is referred to as a "provisional chart." Either way most banks were closed down because of mandatory quarantine. And this is when the trend began with the closing down of walk-in-banks. https://www.nj.gov/health/chs/covid/
Another issue that could frustrate consumers are A.T.Os., which is short for Account Takeover. An Account Takeover is a type of cyber attack that involves stealing a user's login credentials and using them to gain unauthorized access to their online accounts, including banking accounts. A.T.O. attacks are typically done through phishing emails, social engineering tactics, or malware-infected websites. Once A.T.O. attackers access a victim's online banking account, they can carry out various fraudulent activities. For instance, they may use the account to transfer funds to their accounts, make unauthorized purchases, or steal personal and financial data.
A.T.O. criminals may also change the victim's login credentials to maintain access to the account for future fraudulent activities. To protect against A.T.O. attacks, banking customers can use strong and unique passwords for each online account, and enabling two-factor authentication whenever possible is essential. Keeping your computer and mobile devices up to date with the latest security practices and antivirus software can also help to prevent A.T.O. attacks and other types of cyber threats.
Adding antivirus software to a computer can become costly and difficult to comprehend when it is not a resource that consumers are not used to using daily. That said, closing brick-and-mortar banks may seem a cost-saving venture for banks worth $60 billion, such as P.N.C. Bank. Or Bank of America Corp, which is worth $269.15 billion. For the long-term American consumer, such a move of making all transactions online while hoping that you never accidentally lose your debit or credit card can be stressful. Why? Because once local walk-in banks are taken away, the privilege of obtaining a same-day replacement debit or credit card will become nonexistent.
With that shared, the massive closing down of walk-in banks along with the immigrant crisis are two situations that infringe upon the American citizens' overall norm plus well-being, and here's why. Citizens are being used to cater to multi-billion dollar American banks crying poor while utilizing citizens' money, plus resources which mirrors the immigrant crisis of the last 40 years where their countries are making it America's responsibility to provide their people with work, food, healthcare, education, business loans and grants, plus housing that can be seen as quite alot for citizens tax dollars to carry on the long-term. Which is neither fair or ethical.
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