Bank of America is opening 165 new branches, joins list of financial retail expansions in the age of online banking

For many Americans, online banking may be the preferred method of interacting with their bank’s services, but that isn’t stopping Bank of America from opening tons of new brick-and-mortar branches by the end of 2026.

Bank of America, the second largest retail bank in the United States, has announced that it will open an additional 165 branches—it calls them “financial centers”—in the next 28 months.

This is in addition to the 100 new branches the bank has opened in the past two years. The 165 new branches will open in 63 markets, with the first 40 of the new branches opening by the end of 2024. Its newest branch opened in Louisville, Kentucky, yesterday.

Physical banking dies hard

The move to open physical branches comes despite the ever-increasing popularity of online banking. Statista data shows that in 2019, online banking in the United States had a penetration rate of 53%—and that has been rising every year since. In 2024, the penetration rate for online banking reached 69%. In just another five years, in 2029, it is expected to reach 79%.

But Aron Levine, president of preferred banking at Bank of America, says there are still clients who prefer to come into a bank to talk to a financial expert in person, hence the expansion.

“We are reaching more and more clients through the expansion and modernization of our financial centers,” Levine said. “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.”

Bank of America says that almost 20% of the nearly 10 million appointments clients made to speak to someone in person at a branch were to discuss investing.

Dspite BoA’s plans to open 165 new branches over the next few years, Reuters points out that Bank of America today still has about 1,000 fewer branches in 2024 than it did a decade ago. Currently, the bank has about 3,800 branches.

Bank of America, however, isn’t the only one expanding its branch footprint. Its main rival and the largest retail bank in the United States, Chase Bank, is also opening hundreds of more branches. Back in February, JPMorgan Chase announced it would open more than 500 new branches by 2027. At the time, Chase said it had more than 4,700 branches.