News Summary
TD Bank is set to close 38 branches across ten states, including three in Pennsylvania, by June 5 as part of its strategy following a $3 billion settlement related to money laundering charges. The move reflects the bank’s shift towards digital banking preferences. With a significant increase in branch closures since 2020, TD Bank aims to streamline operations while continuing to serve customers through its remaining 1,100 branches. Layoffs are expected, particularly affecting New Jersey employees as the bank adapts to changing market demands.
Pennsylvania – TD Bank has announced the closure of 38 branches across ten states and Washington D.C., effective by June 5. Among these closures, three branches in Pennsylvania will shut their doors, specifically located in Chester County, Marlton, and Chestnut Hill. This decision impacts approximately 150 TD Bank locations in the state.
The closures are part of a broader strategy for the bank as it seeks to recover from a $3 billion settlement with the federal Department of Justice (DOJ) related to money-laundering charges. The DOJ previously accused TD Bank of failing to monitor over $18 trillion in transactions, which allowed more than $600 million in illicit payments linked to Colombian drug cartels.
In 2024, TD Bank pleaded guilty to conspiracy and money laundering violations, leading to significant shifts in its leadership. Most notably, longtime CEO Baharat Masrani resigned, and Raymond Chun was appointed as the new CEO following the conviction.
A representative from TD Bank indicated that the branch closures stem from routine evaluations concerning store traffic, customer needs, and the overall community landscape. This decision reflects a growing trend within the banking sector, where numerous banks are closing physical locations to adapt to changing customer preferences for digital banking solutions.
The increase in branch closures has been significant, with the rate reportedly doubling since 2020. Major banking institutions, including JPMorgan Chase, Bank of America, and Wells Fargo, have also scaled back their physical operations in response to rising competition from online platforms and mobile banking applications.
Despite the announced closures, TD Bank plans to continue serving its customers through approximately 1,100 remaining branch locations and various service channels. Additionally, layoffs are likely, with an estimated 52 positions expected to be eliminated, primarily in New Jersey, where TD Bank’s U.S. headquarters are situated in Cherry Hill.
This closure announcement comes in light of not only the bank’s legal troubles but also its ongoing efforts to align its services with current market demands and customer behaviors. In another recent incident, TD Bank was found to have reported inaccurate information to credit reporting agencies, affecting over 50,000 customers and resulting in fines related to these discrepancies.
As the banking landscape continues to evolve, institutions like TD Bank are finding it increasingly necessary to modify their strategies to meet the needs of modern consumers who are gravitating towards digital banking solutions. The company’s decision to close branches is emblematic of a larger trend reshaping the industry, with traditional banking methods yielding to more innovative and flexible approaches as technology advances.
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