Bank of America plans to open more than 165 US branches by the end of 2026, the lender said on Monday (Sep 23), as it competes with JPMorgan Chase to add locations.
Banks have redesigned their branches to emphasise in-person sales of products such as mortgages and investments, instead of routine teller transactions. The shift came as digital banking services proliferated, reducing the need for physical locations.
BofA’s expansion will include 40 new sites this year, the bank said in a statement. It opens a branch in Louisville, Kentucky on Monday and plans to have five in the city by the end of next year.
In addition to the District of Columbia, the second-largest US lender currently has a presence in 38 states and will expand to 41 by 2026, it said.
Larger rival JPMorgan operates in 48 states and has the largest branch network, with plans to open 500 more by 2027.
BofA financial centres account for 80 per cent of new chequing accounts, with the rest opened online, said Aron Levine, BofA’s co-head of consumer bank and president of preferred banking.
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Despite the expansion plans, the lender’s branch footprint has fallen to 3,800 sites versus more than 4,800 in 2014. The bank has spent US$5 billion on retooling its financial centres in the last decade, adding more than 100 branches over the last two years focused on broader banking, lending and brokerage services.
Consumer banking is the biggest contributor to BofA’s earnings, accounting for nearly 38 per cent of second-quarter net income.
The Federal Reserve’s interest rate cut this week will revive the market for mortgage refinancing for the first time in five years, Levine said.
“Certainly the place that has the biggest impact will be ultimately the refinancing, and then, to some degree, the housing market,” he said. “You’d expect the purchase market to also pick up.” REUTERS
