Bank of America is set to open more than 165 new United States branches by the end of next year, with a new model that will focus less on teller transactions.
While the increase in physical locations may seem contradictory to the ongoing shift towards digital banking, Bank of America‘s management informed Reuters that 80% of its new checking account openings are still through physical branches America-open-more-than-165-new-branches-by-end-2026-2024-09-23/” target=”_blank” rel=”noreferrer noopener”>according to sources.
This announcement follows JPMorgan Chase’s plan to expand its network by 500 branches over the next three years, currently holding the largest branch network in America with over 1,000 more branches compared to Bank of America.
Company Storefront
As customers increasingly handle routine transactions online or at ATMs, banks are restructuring their branches to showcase services like mortgages, investments, and other loan products. At JPMorgan Chase’s new branches, a consultative area for customers will take center stage.
“Our branch network plays a vital role in attracting customers who open accounts with us and deposit their funds,” said Jennifer Roberts, CEO of Consumer Banking at Chase, in an interview with Reuters. “We consider our branches as the storefront for our entire company, serving as an anchor to deepen our relationships with customers as we strive to become their primary financial partner.”
Critical Inroads
Bank of America‘s decision comes at a time when many consumers, particularly younger generations, are moving away from major banks. While Generation Z prefers a modern, digital-first banking experience for most of their needs, they also seek guidance for important financial decisions.
As Generation Z reaches an age where they typically choose their primary financial institution, it is crucial for banks to establish relationships now. This is likely a key reason behind Bank of America‘s accelerated branch expansion, adding approximately 40 new locations this year.
Despite having around 1,000 fewer branches compared to a decade ago, Bank of America spent most of that time revamping existing branches. It was only in the last two years that the bank recommenced its expansion efforts.
America-to-shift-gears-with-new-branch-expansion/”>Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
