HOUSTON, Feb. 7, 2022 /PRNewswire-PRWeb/ -- Khalid Parekh, CEO & Founder of Fair, is citing the newest eye-popping numbers of bank branch closures as further evidence that traditional banking is struggling to compete with the neobank model that he champions via his Fair bank.
As reported in Banking Dive, the S&P Global report shows the number of branch closures totaled a record 2,927 in 2021, a 38% jump over the previous record of 2,126 branch closures in 2020. Wells Fargo, with 267 closures, reported more than any other bank in the U.S., followed closely by U.S. Bank at 257.
"These latest bank branch closure numbers mean that approximately 5,100 brick and mortar bank branches have closed in the U.S. in the last two years alone," stated Khalid Parekh, CEO & Founder of Fair. "That's an average of 100 per U.S. state. And I believe we will continue to see that trend increase. At some point, customers of traditional banks will notice all these branch closures and ask themselves what they're getting for all the high fees they're paying. And the fees are indeed very high, totaling over $1 billion a month."
And the Bank of America CFO recently added fuel to the fire of speculation that the second-largest bank in the U.S. is planning more closures this year, commenting on an earnings call that "stubborn COVID costs," are making branches very costly to maintain.
As BankingDive Insight concluded in their coverage of the branch closings, "The S&P Global report indicates the COVID-19 pandemic has accelerated the shift toward digital banking, as low interest rates put additional strain on many banks. In response, banks are shuttering a record number of branches...as more customers choose to manage their accounts through mobile and other digital channels, instead of banking at traditional brick-and-mortar retail locations."
"Our Fair bank provides all sorts of advantages to customers, including a universal cash / debit card where you can visit any bank branch and get a cash advance from your Fair account with no fees," states Parekh.
Additional ways that Fair bank serves its customers include:
- Transparent membership with no overdraft fees, no balance minimums, and no additional fees at a network of over 55,000 ATMs
- A wealth-building investment feature that can return annual dividends of up to 4% on your cash
- International money transfers with no additional fees
- Debit cards for children included with membership
ABOUT FAIR
Fair is an ethical, socially responsible neobank and digital financial services platform. Fair offers halal-certified, membership-based services to eliminate surprise fees that can prevent financial freedom and savings opportunities. Dedicated to values that place people over profit, Fair practices socially responsible investing (SRI), environmental, social, and corporate governance (ESG) investing and is halal-certified through AAOIFI. Fair donates 2.5% of its profits to global refugee causes and racial economic empowerment initiatives. Fair banking services are provided by Coastal Community Bank, member FDIC.
Membership enrollment is available at bankwithfair.com, and the Fair mobile app can be downloaded in the Apple App Store and Google Play Store. Fair membership can be completed with a social security number or a government-issued ID, such as a valid passport or driver's license. Memberships are $69 a year or $6.99 a month.
Investment and retirement services will be provided by Fair Invest, LLC.
Terms and conditions apply and can be found at bankwithfair.com. Connect with @bankwithfair on Facebook, Twitter, Instagram and LinkedIn.
Disclaimers:
Investment and lending products are provided by Fair Invest, LLC, a registered investment advisory firm with the Securities and Exchange Commission. Custodial and brokerage services are provided by Apex Clearing Corporation, a member of the New York Stock Exchange (https://www.nyse.com/), FINRA (https://www.finra.org/), and SIPC (http://www.sipc.org/).
Please note that these products are:
- Protected by SIPC insurance for Fair Invest, LLC accounts on APEX Platform, not insured by FDIC insurance. SIPC insurance covers customer claims up to $500,000, with a maximum of $250,000 for cash claims. For details, see http://www.sipc.org
- Not a deposit or other obligation of, or guaranteed by Coastal Community Bank, Member FDIC, or any bank affiliate
- Subject to risk including possible loss of invested principal. This risk is assumed by Fair Invest, LLC so member's invested principal will not be impacted by such losses.
Media Contact
Peter Schwartz, Fair, 520.609.2921, [email protected]
SOURCE Fair
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