US banks are building more branches for the first time in a decade. JPMorgan is betting on new brick and mortar locations with plans to build 500 new branches over the next three years.
US banks added more net new branches in 2023 for the first time in a decade. That bet on new brick-and-mortar locations isn’t letting up so far in 2024.
Last year banks added 94 net new branches across the US, according to new data released this week by the Federal Deposit Insurance Corporation. That was the first annual period since 2012 they opened more than they closed, according to Yahoo Finance.
Banks still have a long way to go to make up for all the locations they shuttered. The number of US branches was 69,684 at the end of 2023, down from 82,461 in 2012.
The reason some banks are making new bets on physical branches is that they view the physical locations as ways to grab new wealth management and small-business customers without making acquisitions of rivals that might not pass muster with antitrust regulators, according to some industry observers.
The recent turnaround is surely affected by the expansion of the biggest bank in the US, JPMorgan. It opened a net number of 110 branches in 2023 and this year announced plans to build 500 new branches over the next three years while renovating another 1,700.
„Even wealthy people like to visit their money,” JPMorgan CEO Jamie Dimon said during a CNBC interview in February, noting that 900,000 people visit the bank’s branches every day.
Anders Olofsson – former Head of Payments Finastra
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
