JPMorgan Chase announced on Tuesday that it is beginning one of its most aggressive expansions of bank branches in recent years, with plans to add more than 500 new units in the United States by 2027 to expand its presence in underrepresented areas.
According to the bank, the multibillion-dollar investment will result in the opening of new branches in locations such as Boston, Charlotte, the Washington D.C. area, Minneapolis, and Philadelphia.
JPMorgan did not specify the exact amount of the investment.
The bank’s aggressive expansion strategy comes at a time when other institutions are reducing their physical presence. The number of active bank branches in the U.S. totaled 77,690 after 123 closures and 80 openings in October, according to S&P Global Market Intelligence.
JPMorgan had the largest network as of the end of 2023, with 4,897 branches. Rival Bank of America, which is also adding new branches, had 3,845 as of the end of December.
Driven by consumer resilience and, at the same time, earning more revenue from interest received from customers as the Federal Reserve raised rates, JPMorgan achieved a record annual profit in 2023.
The bank’s new branches will typically have a consultation area for customers to have private conversations and will not use tellers as the main focal point, said Chase Consumer Banking CEO Jennifer Roberts to Reuters.
“Our branch network is one of the main reasons why customers open accounts with us, and it has helped us attract deposits,” Roberts said. “We really see our branches as a showroom for the entire company and it’s an anchor to expand our relationship with customers as we aim to be their primary financial partner.”
The bank also plans to renovate around 1,700 of its existing branches in the U.S. and will hire an additional 3,500 employees for its branch network. The bank had 309,926 employees worldwide at the end of December, more than any of its peers.
JPMorgan also plans to close an additional 30 branches out of nearly 60 it acquired during the acquisition of First Republic Bank last year, Roberts said. First Republic had 84 branches in eight states, and shortly after the acquisition, JPMorgan announced it would close about 21 of them.
The bank is also working to convert over 20 of the First Republic branches into JPMorgan branches, which will be distinct in terms of branding and design compared to Chase branches and target its affluent clients, the bank said.
First Republic was the largest U.S. bank to fail since 2008. JPMorgan said its integration is underway.