BofA Bets on Brick-and-Mortar with 165 New Branches by 2026

Bank of America is counting on customers doing two things that may not come naturally in 2024: putting down their screens and driving over to an actual bank to speak with a human. 

This week, BofA announced it will open more than 165 new branches across 63 markets by the end of 2026, highlighting that the country’s second-largest lender still places plenty of stock in physical locations even as online banking grows in popularity. “While most clients are using our digital capabilities for their everyday banking, they are visiting our centers for in-person conversations about their more complex financial needs and advice on their life priorities and financial goals,” BofA president of preferred banking Aron Levine said in a press release.

A Personal Touch

Online banking has made many processes simpler — no more waiting in line to deposit a check when you can take a picture of it in-app. According to the Federal Deposit Insurance Corporation, by 2021, 43.5% of banked households used mobile banking as their primary method, up from 15.1% in 2017. Meanwhile, the use of bank tellers dropped from nearly 25% to just under 15%.

BofA even admits that more than 95% of client interactions take place on its digital platforms. So why more brick-and-mortar? 

• Checking and savings accounts are easy for bank apps, but many clients still like a little hand-holding when it comes to the bigger stuff. In the past year, nearly 10 million appointments were made with specialists at BofA financial centers, and around 20% of those meetings were to discuss investing options, the bank said.
• Plus, more than 12 million Americans live in “banking deserts,” which makes mobile banking their only option. BofA is looking to fill some of the gaps.

Chase What Matters: Expanding its physical footprint is also a way to ensure BofA stays competitive with JPMorgan Chase, which plans to build more branches in major cities and small-town America. In February, Chase announced that it will open more than 500 new branches and renovate about 1,700 existing locations by 2027.