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Bank of America BAC is set to embark on an ambitious expansion plan to open financial centers in both new and existing markets. By 2026, BofA plans to expand its financial center network into nine new markets, bringing its services to more clients and communities.
Over the next four years, BofA will open 34 financial centers in these new markets, with five in Omaha, five in Louisville, four in Boise, five in Birmingham, three in Madison, five in New Orleans, five in Milwaukee and one each in Dayton and Huntsville.
In addition to its new market expansions, BAC is focused on optimizing its retail banking presence in well-established markets. The company opened 58 centers last year and intends to open more than 55 new locations this year across 34 markets. The company plans to open additional financial centers in Denver, Minneapolis, Indianapolis, Pittsburgh, Salt Lake City, Columbus, Cincinnati, Cleveland and Lexington.
These efforts will further strengthen the company's presence in new and existing markets and enable it to provide a broader range of banking services to its customers. Thus, once the initiative is complete, BofA will have financial centers in more than 200 markets across 39 states.
BofA's commitment to providing modern and state-of-the-art financial centers is evident through its ongoing renovation and modernization project. Over the past three years, the company has been renovating and updating its existing financial centers across the country. By the end of 2023, more than 2,500 centers will have been renovated, creating offices and meeting spaces for clients to engage with financial specialists and ensuring a consistent and modern experience across all centers.
Despite expanding its financial center network, BAC has been closing certain financial centers in recent years. Speaking at a Morgan Stanley conference earlier this month, Aron Levine, president of preferred banking, stated that over the last two years, nearly 525 financial centers were closed.
Also, over the last decade, BAC’s network shrunk to almost 3,800 centers from 6,100, while customer deposits doubled to $1 trillion. The company plans to continue closing financial centers in the future, albeit in a more measured manner. The company recognizes the shift toward digital banking and the decreased demand for in-person transactions as reasons for this.
By expanding its network, BAC is trying to close the gap with JPMorgan JPM. JPM, in 2018, announced plans to enter 25 new markets by opening 400 branches. Currently, JPMorgan operates branches in 48 states, while BofA's network will span 39 states once its expansion plans are realized.