The news: PNC said this week that it would open more than 300 new or renovated branches by 2030, nearly 100 more than it had planned as of last year. The expansion is broad-based and includes branch investments in Florida, Tennessee, and Illinois.

How we got here: US megabanks have grand plans for branch expansion: As of this summer, JPMorgan Chase had plans to open 500 new branches, Bank of America 150, and PNC 220. Yet the national branch network overall is still shrinking: For every branch opened in 2024, two branches closed. And much of the “new” branch activity includes branch renovations.

Banks’ objectives with new branches and branch renovations differ. PNC is expanding its branch network to pursue retail deposits, while Truist’s new branches are designed to attract wealthier consumers. BMO recently announced plans to sell branches nationwide to First Citizens and open 150 in California, focusing on key markets while First Citizens expands its national reach. And JPMorgan is expanding in-person private client services.

Our take: The branch itself is not in decline—the strategic approach is just changing:

• Thoughtful branch renovations will mean a more efficient branch network that is better tuned to the needs and expectations of digital-first customers and tailored to the services in particular markets.
• Banks still need a branch footprint in markets where they want a presence. Acquiring or building new branches are ways to establish brand recognition with consumers, and customers still value in-person banking services.

Branches are a crucial marketing tool for banks, even when their customers have largely migrated to digital channels—like an online retailer that has “showroom” stores with a curated selection of products. It’s not just about how many branches and where they are, but also how they are designed.