Bank Al-Maghrib: 145 Bank Branches Closed Their Doors in 2023
In the digital era where convenience is paramount, the Moroccan banking sector experienced a notable transformation in 2023. According to a report by Bank Al-Maghrib, the nation's central bank, 145 bank branches ceased their physical operations, while only 42 new branches emerged, resulting in a total of 5,811 operational branches nationwide.
This trend mirrors the previous year, during which 189 bank branches closed, highlighting the sector's shift towards digitization and a more streamlined customer experience. The report emphasized that only banks with significant clientele managed to withstand the reduction in physical branches, resulting in the establishment of six additional branches.
As the banking landscape evolves, the country's banking density has been affected, with 4,791 individuals aged 15 and above per bank branch at the end of last year, a slight increase from 4,575 in 2022. Regionally, the Draa-Tafilalet and Marrakech-Safi regions boasted the highest density, with 8,793 and 7,181 individuals per branch, respectively, while the Casablanca-Settat and Oriental regions exhibited the lowest density, with 3,497 and 3,685 individuals per branch.
In the midst of this transformation, participative banks witnessed growth, adding six new branches in 2023. However, conventional banks bore the brunt of closures, with the Casablanca-Settat region accounting for 53 shuttered branches, or over 36%, followed by the Tangier-Tetouan-Al Hoceima region with 22 closures and the Rabat-Sale-Kenitra region with 19 branches closed.
Banking groups themselves experienced varying fortunes. Societe Generale Maroc led in branch closures, shuttering 49 locations, followed by Attijariwafa bank with 33 closures, Bank Of Africa with 28, BMCI with 20, and Banque Populaire with 15. Conversely, CIH Bank opened the most new branches, unveiling 11 new locations, followed by Al Barid Bank with 9 and Attijariwafa bank with 4.
This reshuffling of the banking landscape also impacted the rankings of banking organizations based on network size. Banque Populaire remains at the top with 1,372 branches, followed by Al Barid Bank in second place with 950 branches, and Attijariwafa Bank securing the third position with 928 branches.
As the digital revolution continues to reshape industries, the Moroccan banking sector is adapting to the changing times, embracing technological advancements while strategically optimizing its physical footprint, striking a delicate balance between traditional and modern banking experiences.