Pacific Grove loses another big bank branch, part of a national consolidation trend.

A few years ago, national banks began consolidating branches across the country, closing smaller offices with less traffic, leaving some small towns without a bank. Then the Covid-19 pandemic hit and consolidation plans sped up. For Pacific Grove, that meant losing its Bank of America branch in 2021. Next, Chase Bank is exiting downtown. That will leave Union Bank as the only big bank downtown, although two smaller banks – California’s Mechanics Bank and Monterey County Bank – will remain on Lighthouse Avenue.

The Chase announcement caused a ripple, leaving town officials and business owners worried that the branch closures – along with the loss of ATMs – would pose a problem. “The main concern is having access to cash,” says P.G. Chamber of Commerce President and CEO Jenny MacMurdo. “It makes it difficult to get cash on Lighthouse Avenue. There are options but you get hit with fees, unless your bank reimburses you those fees.”

After a discussion at the P.G. Economic Development Commission on Aug. 11, the Chamber agreed to launch a survey of its members, asking if they will be affected by the Chase closure, the importance of access to cash downtown and if they are thinking of switching banks. Early results show a small percentage are looking at switching to smaller banks like Mechanics and Monterey County Bank. “That’s a good thing. We want to support them and keep them here,” MacMurdo says. “They really do give back in huge ways to the community.”

A Chase branch for specialized banking services will remain in the Country Club Gate Center, about one mile up the hill from downtown. It features an outside ATM.