HARLINGEN — Capital One Bank, in a cost-cutting measure, is closing its Rio Grande Valley branches in June and will rely instead on online banking and ATMs in the region.
A spokesperson for the nation’s eighth-largest bank holding company said the decision was based on cost and changing consumer habits.
It will affect all 11 branches and drive-up banks in the Valley, including two in Harlingen and two in San Benito.
Other Valley branches or drive-ups that will be affected are in Brownsville, McAllen, Mission, Edinburg and Pharr.
“This was a business decision based upon the long-term cost, real estate and customer needs of this market location and is not a result of individual associate or organizational performance,” said company spokesperson Amanda Landers via email.
“We began notifying customers this week and are encouraging them to give us a call or stop by to ask us any questions before their branch closes on June 24,” Landers said. “We can show them the available options to bank at any time with Capital One through online banking and bill pay, and mobile banking.”
A total of 14 employees in Harlingen and another seven in San Benito will lose their jobs.
“We’re also of course committed to helping our associates,” Landers said. “In addition to receiving extensive career transition support, they’re eligible to receive a severance package, including retraining assistance and outplacement services.”
There is the possibility of employment elsewhere within Capital One, she said.
“Associates are able to post for roles at other Capital One locations and the company will assist in the process, but any openings would be outside the Rio Grande Valley,” Landers added.
The Capital One moves in the Valley mirror those of the country’s biggest banks in other parts of the nation.
Bank of America announced last fall it would close hundreds of branches, and Citigroup revealed in October its branch count has been slashed 7 percent in North America.
The big banks cite changing customer preferences when it comes to banking, such as the increased use of online banking and direct deposit.
Landers said that even as Capital One closes branches, the bank is committed to Valley communities “and will continue to support the local economic activity through community partners who specialize in microfinance and community lending.”
Capital One, based in Tysons Corner, Virginia, has around 800 branches in the United States and 2,000 ATMs.
Capital One locations
Harlingen-Van Buren (drive-up)
300 E. Van Buren
502 S. Dixieland Road
Sam Houston-San Benito
198 S. Sam Houston
Sam Houston-San Benito (drive-up)
199 Sam Houston