JPMorgan Chase has added 1,000 new brick-and-mortar branches in just seven years, outpacing all of its major US banking rivals combined.
The move comes as the bank continues to double down on physical expansion, even as digital banking grows.
On Thursday, the firm marked the milestone with a ribbon-cutting ceremony in Charlotte, North Carolina, attended by Chairman and CEO Jamie Dimon.
The Charlotte opening highlights not just JPMorgan’s strategy but also its competitive ambitions, putting it in direct competition with Bank of America on the latter’s home turf.
JPMorgan branches reach 5,000; 1,100 new sites by 2027
The new Charlotte branch brings JPMorgan’s total number of US locations to a little over 5,000, according to March data from the Federal Reserve.
The bank now operates more branches than any other financial institution in the country.
In 2018, JPMorgan had branches in 23 US states and announced plans to expand into up to 20 new markets over five years, aiming to open 400 locations.
By 2021, it had achieved nationwide coverage in the lower 48 states.
In February 2023, the bank committed to opening another 500 branches by 2027 as part of a multibillion-dollar investment plan.
Once complete, the expansion will see Chase add more than 1,100 locations and renovate around 4,300 existing branches.
It will also see the bank enter 80 new US markets, aiming to place 75% of the population within accessible driving distance of a branch.
Newer branches may add $160 billion in deposits
JPMorgan has projected that the new branches could generate over $160 billion in incremental deposits.
At the firm’s May investor day, it shared that each new location is expected to break even within four years.
The focus on physical expansion also reflects a shift in banking strategy.
Since the 2008 financial crisis, the number of US bank branches has declined, with many institutions prioritising digital platforms over in-person service.
But JPMorgan has bucked that trend, using branch growth to target population centres that have gained prominence during and after the pandemic.
Charlotte move pits Chase against Bank of America
The Charlotte opening also brings JPMorgan into direct competition with Bank of America, which is headquartered in the city.
According to KBW and S&P Global Market Intelligence data, Bank of America controls 71% of the local market.
Chase will now have around 75 branches in North Carolina.
The state’s young and growing population, along with rising regional wealth, were key factors in JPMorgan’s expansion there.
Competitors ramp up expansion after JPMorgan’s lead
While JPMorgan has led in branch expansion, other large US banks are now stepping up.
Bank of America has announced plans to open 150 new financial centres by 2027.
Wells Fargo, after meeting regulatory consent order conditions, is also adding new branches to its portfolio.
Industry-wide expansion could signal a reversal of the post-2008 contraction in physical banking locations.
The return to building branches comes amid a broader effort by banks to reorient services and acquire new deposits in faster-growing areas across the US.
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