Bank of America has announced plans to open more than 165 new branches across the U.S. by the end of 2026, intensifying its competition with JPMorgan Chase. This move is part of a strategic shift in how major banks operate, focusing more on in-person sales of financial products like mortgages and investments rather than traditional teller services.
The expansion comes as digital banking reduces the need for routine physical transactions. According to Aron Levine, Bank of America’s co-head of consumer banking and president of preferred banking, about 80% of new checking accounts are opened in person at financial centers. In comparison, the remaining 20% are opened online.
Despite the recent announcement, Bank of America’s branch footprint has actually decreased over the past decade. The bank currently operates about 3,800 branches, down from more than 4,800 in 2014. Over the last two years, however, the company has added more than 100 new branches, with a focus on providing a broader range of banking, lending, and brokerage services. The bank has also spent $5 billion over the last ten years upgrading and retooling its financial centers.
Bank of America’s consumer banking division continues to contribute to its overall financial performance, accounting for nearly 38% of its net income in the second quarter of this year.
The announcement comes from the Federal Reserve’s recent interest rate cut, which Levine said will likely breathe new life into the mortgage refinancing market. “The refinancing market, which has been dormant for years, is about to see a revival,” Levine stated. “We also expect to see an uptick in the housing market.”
