145 branches shut down in 2023 compared to only 42 new ones opening, according to a recent report from the country’s central bank, Bank Al-Maghrib (BAM).
The report reveals a continued decline in physical bank branches, with closures outpacing openings in 2023. This brings the total number of operational branches in Morocco to 5,811, catering to a population of over 15 years old.
This trend follows a similar pattern observed in 2022 with 189 bank branch closures.
According to the report, the national banking network in 2023 includes 5,606 branches of conventional banks, compared to 5,715 in 2022, 9 offshore banks, and 196 participatory banks instead of 190 branches in 2022.
This network reduction has consequences for banking density across Morocco. The report highlights an increase in the number of people served by each branch, rising from 4,575 in 2022 to 4,791 in 2023.
This trend is particularly pronounced in densely populated regions like Draa-Tafilalet and Marrakech-Safi, where a single branch now serves over 7,000 and 8,700 people respectively.
Conversely, areas like Casablanca-Settat and Oriental see fewer people per branch, with ratios of 3,497 and 3,685 respectively.
Interestingly, the network of participative banks, which offer Shariah-compliant financial products, actually expanded in 2023 with the addition of six new branches.
All closures affected conventional banks. Geographically, the Casablanca-Settat region witnessed the most closures (53), followed by Tangier-Tetouan-Al Hoceima (22) and Rabat-Sale-Kenitra (19).
Looking at individual banks, Societe Generale Maroc closed the most branches (49), followed by Attijariwafa Bank (33), Bank Of Africa (28), BMCI (20), and Banque Populaire (15).
Notably, CIH Bank opened the most new branches (11) followed by Al Barid Bank (9) and Attijariwafa Bank (4).
As a result of these closures and openings, the ranking of banking groups based on branch size has shifted. Banque Populaire remains the leader with 1,372 branches, followed by Al Barid Bank with 950 and Attijariwafa Bank with 928.
The decline in physical branches reflects a broader shift in consumer behavior. Moroccans are increasingly embracing digital banking solutions, prompting banks to adapt their strategies and invest in online platforms and mobile applications.
While this could lead to reduced access for those without reliable internet or digital literacy, it’s clear that digitalization is reshaping the landscape of the banking sector.
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