Bank of America plans to open over 165 new branches by the end of 2026

Bank of America announced plans to open over 165 branches across the U.S. by the end of 2026, as it competes with JPMorgan Chase to expand its footprint. The bank is shifting its branch strategy to focus on in-person sales of products like mortgages and investments, moving away from routine teller transactions in response to the rise of digital banking.

This year, BofA will open 40 new locations, starting with a branch in Louisville, Kentucky, on Monday, with plans for five branches in the city by the end of next year. Currently present in the District of Columbia and 38 states, the bank aims to expand to 41 states by 2026.

In contrast, JPMorgan operates in 48 states and has the largest branch network, planning to open 500 additional locations by 2027.

BofA’s financial centers are responsible for 80% of new checking accounts, with the remainder opened online, according to Aron Levine, co-head of consumer banking and president of preferred banking.

Despite these expansion efforts, BofA’s total branch count has decreased to 3,800 from over 4,800 in 2014. The bank has invested $5 billion in upgrading its financial centers over the past decade, adding more than 100 branches in the last two years that emphasize a wider range of banking, lending, and brokerage services.

Consumer banking remains BofA’s largest revenue source, contributing nearly 38% of its net income in the second quarter.

Levine also noted that the recent Federal Reserve interest rate cut is expected to boost the mortgage refinancing market for the first time in five years. “The biggest impact will certainly be on refinancing, and we expect the housing market to pick up as well,” he said.