A branch of Industrial and Commercial Bank of China. File Photo: Xinhua

China's Big Four Banks, referring to the country's four largest state-owned banks, shut down 187 service locations and offices in the first half of this year, according to data from the banks' H1 financial reports. 

If the shrinking pace continues, the reduction in Chinese bank service locations for 2021 is very likely to be similar or higher than last year's, according to media reports.

By the end of June this year, the Agricultural Bank of China had 22,889 bank outlets, 94 fewer than in December of 2020. The China Construction Bank closed 85 locations in the first half of this year, while the Bank of China (BOC) has 31 fewer outlets compared with the end of last year. 

The Industrial and Commercial Bank of China (ICBC) is the only one of the Big Four Banks that saw the numbers of its locations flourish this year. By June, it had 15,823 outlets, 23 more than last year. 

According to a report of the 21st Century Business Herald, if the trend continues, the reduction of service locations of China's banks for this year is very likely to be similar or higher than last year's. In 2020, the four major banks saw their outlets or institutions reduce by 370 in total.

The downsizing of Chinese banks is not only a result of China's fintech development, as growing numbers of consumers can process transactions online instead of having to go to a bank. Also, this is a result of the bank's reckless strategies, as they opened too many branches in neighborhoods without strong proof for the feasibility of such expansion, experts said. 

The report also quoted a staff member from a bank in southern China that mentioned that not only bank outlets are being closed, but the size of each branch is also shrinking. Besides, the cut in service locations has led to a reduction in bank employees. In the first half of this year, the number of employees in the four major banks has decreased by 22,355, according to the banks' financial reports. 

The ICBC has reduced the number of employees by about 10,000 in the first six months of this year, while the BOC let go more than 3,000 staff.