Bank of America to Open Over 150 Financial Centers by 2027, Stock Up

Bank of America BAC plans to open more than 150 new financial centers across 60 markets by the end of 2027. With this move, the bank continues its aggressive expansion as part of a broader strategy to strengthen customer relationships and tap into new markets. BAC plans to open 40 new financial centers in 2025, in addition to 70 more in 2026. Since the announcement of this plan, shares of BAC have risen 3.2%.Strategic Rationale Behind BAC’s Expansion PlanBank of America currently offers banking services to nearly 250 million individuals in over 200 markets, representing approximately 82% of the U.S. population. With ongoing expansion, the company is increasing its physical footprint and adapting to evolving consumer behavior. Since 2014, the bank has steadily expanded its financial center network, entering 11 new markets. Since 2016, BAC has spent more than $5 billion on its financial centers network. The bank has added 471 centers in its existing markets since 2016 in response to changing client preferences. Additionally, the company completed the renovation of more than 3,000 financial centers last year, with plans to complete more than 500 additional renovations over the next two years.Notably, the bank has seen a surge in requests for in-person advisory services to discuss more complex financial issues, despite 90% of its customer interactions taking place online. In 2024, nearly 10 million appointments were scheduled with financial specialists in BAC’s financial centers. This shift toward in-person advisory services seems to be driving the company’s focus on opening new centers in key regions. Around 30% of the bank’s financial centers are in low- and moderate-income communities, which act as a critical tool for deepening relationships with customers.Our Take on BAC’s Expansion StrategyThe bank's strategic investment in new financial centers and its expansion into new markets reflects a broader industry shift toward optimizing its networks to deepen customer relationships and tap into new business opportunities. The expansion underscores the bank's strategy to modernize its banking locations and enhance customer engagement, providing Bank of America with long-term leverage in the evolving banking landscape.Shares of Bank of America have risen 16.9% in the past year compared with the industry’s growth of 29.5%.Image Source: Zacks Investment ResearchCurrently, BAC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other Banks Taking Similar StepsIn November 2024, The PNC Financial Services Group, Inc. PNC announced plans to increase its branch investment by $500 million to open more than 100 additional financial centers and renovate 200 existing locations across the United States. This was followed by PNC’s announcement in February 2024 to invest $1 billion to open more than 100 financial centers and renovate more than 1,200 existing locations by 2028.Similarly, in the same year, JPMorgan JPM announced its plans to open more than 500 new financial centers, renovate roughly 1,700 locations, and hire 3,500 employees by 2027. With this, the company is poised to bring affordable and convenient financial services to communities nationwide. This expansion will enable JPM to foray into several new markets, including low-to-moderate income and rural communities with limited access to banking services.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks