that leaves a pretty big loophole, though. if i am a smaller bank that has 5-20 branches, it might just be in my best interest (profit) to just go online-only instead of implement whatever the regulations deem necessary.

(keeping in mind that this regulation applies to all industries, so the above example of closing all physical operations because the regulations make it more profitable to now be online-only, so that the regulations dont apply, repeats in all industries)

And that's fine I guess? It's important that there are banks that are too huge to go online-only.

It will be easier to comply for other industries. From my initial example, for event tickets, they wouldn't care much whether they scan a screen or a piece of paper when you enter, and they could let already-existing box offices sell the tickets. For government agencies, those already have offices, so nothing changes. For parking, just bring back the kiosks.