The ongoing digital transformation of the banking sector is driving a significant decline in the number of physical bank branches in Belgium. Figures from the banking federation, Febelfin, reveal that almost 10% of branches closed in 2023 alone, reducing the total number to 3,243.
This trend isn't new. Over the past three decades, more than 80% of Belgium's bank branches have closed as customers increasingly turn to online banking for everyday transactions. 2023's reduction is among the most considerable annual decreases of the past decade. If closures continue at this pace, the country could have fewer than 3,000 branches by the end of the year.
The largest banks, including BNP Paribas Fortis, KBC, Belfius, and ING, are primarily responsible for the network downsizing, with a 12.4% reduction in branches. Networks operated by independent banking agents have fared slightly better, showing a still-significant 6.2% decline.
Despite the closures, Belgium maintains a relatively high density of bank branches compared to other European nations. With 307 branches per million inhabitants, it ranks seventh in this metric, above the European average. Bulgaria leads the ranking with 664 branches per million inhabitants, while the Netherlands sits at the opposite end with only 41.
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