Bank of America to Open 165 New Branches by 2026 as US Banks Expand Physical Presence

Bank of America to Open 165 New Branches by 2026 as US Banks Expand Physical Presence

Bank of America (BAC) announced plans to open 165 new branches by the end of 2026, joining other major US banks in expanding their physical presence after years of downsizing. This move follows similar announcements from competitors like JPMorgan Chase (JPM), which is set to open 500 new branches by 2027, and regional lenders PNC Financial Services (PNC) and Fifth Third Bank (FITB), which have also revealed branch expansion plans.

The renewed focus on brick-and-mortar locations comes after a decade of branch closures driven by the rise of digital banking and the 2008 financial crisis. Bank of America has closed over 1,000 branches since 2014, primarily in less populated areas, as it shifted focus to major urban markets. Despite the shift to online banking, banks view physical branches as vital for attracting wealth management and small-business customers.

The new Bank of America branches aim to offer more than just traditional banking services, with a focus on providing financial advice. Bank of America CEO Brian Moynihan has emphasized that branch investments are part of a broader strategy to strengthen customer relationships.

In addition to opening new locations, Bank of America has invested $5 billion since 2014 to redesign and renovate over 3,000 branches, creating spaces for financial advisers to meet with customers. Although 95% of the bank's interactions now happen online, nearly 10 million in-person appointments have been scheduled, with many focused on financial advice.

This trend marks a shift in the banking industry, with US banks adding more net new branches in 2023 than in any of the previous 10 years. However, the total number of branches remains significantly lower than in previous decades, down to 69,684 at the end of 2023 from 82,461 in 2012.