Bank of America (BAC) plans to open more than 165 branches in the U.S. by the end of 2026, the bank said on Monday, as it competes with JPMorgan Chase for branch expansion.
Banks have redesigned branches to focus on selling products like mortgages and investments in person, rather than the usual teller transactions. The change comes amid a surge in digital banking services, reducing the need for physical branches.
Bank of America said in a statement that its expansion this year will include 40 new locations. The bank opened a branch in Louisville, Kentucky, on Monday and plans to open five more locations in the city by the end of next year.
The second-largest U.S. lender currently has a presence in 38 states, in addition to the District of Columbia, and plans to expand to 41 states by 2026, the company said.
Larger rival JPMorgan operates in 48 states, has the largest branch network, and plans to open 500 more by 2027.
Bank of America's financial centers account for 80% of new checking accounts, with the rest being opened online, said Alon Levine, co-head of consumer banking and president of preferred banking at Bank of America.
Despite the expansion plans, the bank's branch count has fallen to 3,800 from more than 4,800 in 2014. The bank has spent $5 billion over the past decade restructuring its financial centers, adding more than 100 branches in the past two years and focusing on a broader range of banking, lending and brokerage services.
Consumer banking is Bank of America's largest profit contributor, accounting for about 38% of second-quarter net income.
Levine said the Federal Reserve's interest rate cut this week will revitalize the mortgage refinancing market for the first time in five years.
“Certainly the biggest impact will ultimately be refinancing and then to some extent the housing market,” he said. “We expect the purchase market to recover as well.”
(Reporting by Saeed Azhar; Editing by Lanang Nguyen and Cynthia Osterman)
