TD Bank is streamlining its retail footprint, announcing the closure of 38 branches nationwide which casts six Massachusetts locations in the spotlight; they are slated to shut their doors on June 5. According to WCVB, the move is part of a strategy to “best serve our customers through an optimal mix of convenient TD Bank locations and digital banking products and services.”
The branches bowing out of business in the Bay State are located at 860 South Main St. in Bradford, 465 North Main St. in East Longmeadow, 420 Franklin St. in Framingham, 50 Holyoke St. in Holyoke, 547 Broadway in Methuen, and 2345 Main St. in Tewksbury; notices have already been dispatched to customers affected by the upcoming changes, but no details about potential job losses or the reasons behind choosing these specific branches were provided by the company. In contrast, as brick and mortar operations wind down, TD Bank is venturing into the Nubian Square neighborhood of Boston with a new “community store” set to open in May, intended to underpin financial health in the area while also contributing space for local events and non-profit activities, a significant uptick in their community engagement initiatives.
Behind the closures lies a more tumultuous chapter in TD Bank’s recent history: last October, the banking giant was hit with a record $3 billion fine by the Department of Justice for failures in monitoring money laundering activities, including those linked to drug cartels. As reported by Boston 25 News, this severe penalty raises inevitable questions about the financial health of the bank and the potential impact of such fines on operations and strategy.
TD Bank has stated that the closures of physical branches are in line with changing consumer patterns, pointing to a shift towards digital platforms as a result of the pandemic. The bank emphasized that in-person transactions have decreased as more customers turn to online banking and app-based financial services. The closure of physical branches follows the imposition of a significant fine. Additionally, TD Bank has opened a community store in Nubian Square, which may be part of their broader strategy to engage with the community.
