As the retail landscape evolves, the rise of "banking deserts" — areas where access to banking services is increasingly scarce — is becoming a significant challenge. This trend is affecting businesses in urban, suburban, and rural areas across the U.S. and Canada, creating new hurdles for those managing cash transactions.

The impact of bank closures for businesses

Although the pace of bank branch closures have cooled from their 2021 peak, a net 1,409 bank branches closed in 2023, a trend that continues to make it more difficult for businesses that rely on cash transactions to access essential banking services. 

Businesses now have to send staff on lengthy trips to the nearest branch, often taking 30 minutes or more. This not only wastes valuable time but also disrupts daily operations, as employees are pulled away from their primary duties to handle banking tasks.

Businesses need their bank deposits processed quickly so they can access their funds the following business day. Having quick access to funds is vital for maintaining cash flow, especially during tough economic times. Frequent trips to the bank divert resources away from core activities like serving customers and sales. 

The impact of bank closures for local communities

According to a report by the Federal Reserve Bank of Philadelphia, banking branches declined by 5.6 percent and banking deserts increased by 217 since 2019.

Business owners frequently find themselves having to close their doors to make deposits during bank hours. This is because bank branches have limited hours of operation, often overlapping with peak business hours. 

As a result, owners or managers must leave their stores unattended to make these deposits, compromising both customer service and operational efficiency. This situation creates a frustrating dilemma for business owners who must balance the need for timely bank deposits with the demands of running their day-to-day operations.

How can businesses navigate these banking deserts and streamline their cash management? 

Clip offers a comprehensive network of self-serve cash deposit solutions, allowing direct deposits into existing business bank accounts with next-business-day credit. Supported by financial institutions, commercial partners, and big-box retailers, Clip has become a preferred choice for independent and national businesses alike. Their network operates during extended retail hours, cutting monthly cash management costs up to 60%. 

With the Clip Cashboard, businesses can make quick and easy deposits nearby, revolutionizing cash handling for enterprises of all sizes.

Clip now offers ClipChange, delivering small bills and coins to business storefronts on demand helping further drive convenience and banking service access to businesses.

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