Can Branch Expansion Give Bank of America an Edge in the AI Era?
Bank of AmericaBAC has been proving that physical branches still matter, even as artificial intelligence (AI) transforms banking. As of March 31, 2026, BAC had 3,540 financial centers and 14,902 automated teller machines across the United States.
While investing heavily in renovations and upgraded branch formats, BAC continues with its plan of opening more than 150 financial centers across 60 markets by the end of 2027, a move that underscores management’s view that digital tools and AI enhance and do not replace in-person banking.
This strategy is expected to provide a meaningful customer acquisition advantage to BAC. Despite more than 90% of client interactions occurring through digital channels, customers still schedule nearly 10 million appointments with financial specialists in a year at Bank of America. The bank’s financial centers are increasingly being used for complex discussions around mortgages, retirement planning, wealth management and small-business services, wherein face-to-face advice helps build trust and deepen relationships.
Physical presence is also expected to amplify digital growth. Branches act as both advisory hubs and marketing assets, improving brand visibility and making it easier to convert online prospects into full banking relationships.
Thus, in the AI era, Bank of America’s hybrid model (combining digitization with physical branches) may give it an edge over peers. BAC’s AI tools, like its virtual assistant, Erica, can handle the routine tasks and improve efficiency, freeing employees to focus on higher-value conversations. By combining advanced technology with expanded physical access, Bank of America is positioning itself to attract more customers, gather deposits and strengthen cross-selling opportunities in an increasingly competitive banking landscape.
Branch Expansion Efforts by BAC’s Peers
JPMorgan JPM, the biggest bank in the country, is also expanding its footprint in new regions despite the rise of mobile and online banking. It targets to expand its affluent banking services and open more than 500 branches by 2027, with above 160 across 30 states to be opened this year. This move is expected to solidify JPMorgan’s position as the bank with the largest branch network, covering all 48 U.S. states.
JPMorgan is also committed to renovating its existing locations by 2027 to serve its customers better.
Wells FargoWFC had 4,093 retail bank branches as of March 31, 2026. The bank is investing in its branch network and upgrading digital tools to augment customer experience. In 2025, Wells Fargo refurbished approximately 700 branches, with more than half of its branch network now upgraded and the remaining branches expected to be completed over the next few years.
Bank of America’s Price Performance, Valuation & Estimates
In the past six months, shares of Bank of America have lost 3.5% against the industry’s 2.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Bank of America trades at a 12-month trailing price-to-tangible book (P/TB) of 1.82X, below the industry average of 2.89.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Bank of America’s 2026 and 2027 earnings implies year-over-year growth of 17.1% and 13.6%, respectively. In the past week, earnings estimates for both years have been unchanged.
Image Source: Zacks Investment Research
Bank of America currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).
