Bank of America (BAC) announced on Monday its intention to open 165 new branches by the end of 2026, marking a significant shift in the U.S. banking landscape as major lenders increasingly invest in physical locations after years of downsizing.
This expansion follows similar commitments from competitors, including JPMorgan Chase (JPM), which has pledged to add 500 new branches by 2027, and PNC Financial Services Group (PNC), which plans to open 100 new locations while renovating over 1,000 existing ones. Additionally, Fifth Third Bank (FITB) is also working to broaden its branch network.
Industry analysts suggest that these banks are viewing new branch openings as strategic moves to attract wealth management and small-business clients, rather than relying on acquisitions that could face regulatory hurdles. The aim is to transform branches into advisory hubs where customers can receive financial guidance rather than merely conducting transactions.
Bank of America CEO Brian Moynihan highlighted at a Barclays conference earlier this month that these branch investments are integral to “cementing” customer relationships across the bank’s extensive operations. He noted, “It’s one of the reasons why our fundamental growth rate outstrips the industry.”
This expansion is particularly noteworthy given Bank of America’s substantial downsizing of its branch network following the 2007-2009 financial crisis, which prompted widespread cost-cutting measures. Since 2014, the bank has closed over 1,000 branches, many of which were located outside major metropolitan areas as the bank shifted its focus to larger population centers.
In June of last year, Bank of America outlined plans to enter nine new markets, including Louisville, Kentucky; Birmingham, Alabama; New Orleans; Boise, Idaho; Milwaukee, Wisconsin; and Omaha, Nebraska. The bank is set to open 40 new locations this year, with the Louisville branch already inaugurated on Monday.
Felicia Lewis, an executive in Bank of America’s southeast division, expressed enthusiasm for the bank’s expansion in Kentucky, stating, “We are thrilled to be expanding our presence in the Bluegrass state.”
Since 2014, Bank of America has invested $5 billion into its branch network, focusing on renovating and redesigning over 3,000 locations to create more space for customer meetings with financial advisers and specialists.
While 95% of customer interactions currently occur online, Bank of America reported that nearly 10 million appointments have been made at its financial centers, with 20% of those appointments dedicated to consulting with financial advisers regarding investment strategies.
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