Bank branches drop below 20,000: Italy faces financial desertification

Fewer branches and ATMs, more advisors: but who’s supporting small towns?

A historic drop for Italy’s banking network

In 2024, the number of active bank branches in Italy dropped to 19,655, falling below the symbolic threshold of 20,000 for the first time. This 2.5% decrease compared to 2023 mainly affects banks belonging to large groups, which continue to streamline their physical networks in favor of digital and remote advisory models.

Financial advisors on the rise, but not enough

At the same time, the number of financial advisors grew sharply, from 31,259 to 35,963 (+15.1%). But this change cannot fully compensate for the loss of physical branches: these professionals are not accessible to all, nor consistently present in more vulnerable areas.

ATMs and POS terminals are disappearing

Automated teller machines (ATMs) dropped by 4%, and POS terminals fell by more than 220,000 units, a dramatic 22.7% decline. The reasons may include technical reclassifications, market exits by providers, or a shift to smartphone-based payments—yet the drop raises serious concerns about access to digital services.

BancoPosta bucks the trend and expands

BancoPosta stands out by increasing both branches and ATMs, reaffirming its role as a local anchor point in communities. This suggests that proximity and personal interaction still matter to many citizens.

The risk: a selective banking system

According to Unimpresa, behind the trend of digitalization hides a growing banking desertification, hitting small towns and internal areas hard. The banking system is becoming increasingly selective, focusing on big urban centers and higher profit margins, while excluding less profitable regions and people.

A proposed solution: a financial inclusion roundtable

Giuseppe Spadafora, Unimpresa’s vice president, calls for a permanent task force involving the government, ABI, the Bank of Italy, and business associations to tackle the issue of financial inclusion before it turns into a social and economic emergency.

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FAQ

1. Why is the drop in bank branches a concern?
   It limits access for people in remote or rural areas who rely on in-person services.
2. Who are financial advisors?
   Mobile consultants offering personalized banking services, but not always available everywhere.
3. What is financial desertification?
   A situation where entire areas lack physical banking infrastructure, hurting local communities and businesses.
4. Why are POS terminals decreasing so sharply?
   Likely due to reclassifications, market exits, or a shift toward mobile payment technologies.
5. How is BancoPosta different?
   It’s increasing its presence, maintaining access points across local territories.
6. How many bank branches were closed in 2024?
   A total of 505 branches, reducing the national count to 19,655.
7. Who proposed the financial inclusion roundtable?
   Unimpresa, through its vice president Giuseppe Spadafora.
8. Is digital banking enough?
   No—especially for vulnerable populations and small businesses.
9. What do small businesses want?
   Accessible, local banking services—not just digital solutions.
10. Is personalized consulting good or bad?
    It’s useful, but shouldn’t replace widespread physical access to banking.