After closing more than 200 branches in 2023, PNC Bank said yesterday it is aiming to spend $1 billion over the next four years to renovate 1,200 branches nationwide and open 100 new ones in some of the country’s fastest-growing cities
- Banks are cutting branches. But they also have been opening them in markets where they see potential to expand their business.
- At the same time, they have been redesigning branches to focus on providing financial advice and solving complex problems.
- The new looks often entail dispensing with teller lines and creating more spaces for bankers to meet with customers.
Is this happening here: Yes:
- Pittsburgh-based PNC plans to renovate branches in Central Pennsylvania, where it is the largest bank by market share, according to bank spokesperson Olivia Lammel.
- However, the bank can’t yet say how many will get a makeover, she said.
- The renovation plan covers more than half the bank’s roughly 2,300 branches, a count that includes about 30 offices spread across Adams, Cumberland, Dauphin, Franklin, Lancaster, Lebanon and York counties.
What about new branches: PNC’s initial targets for new offices include high-growth cities like Austin, Dallas, Denver, Houston, Miami and San Antonio.
- Additional locations are still being finalized, Lammel said. “We don’t have plans to share at this time specific to Central Pennsylvania.”
Why is this happening: Despite a decline in foot traffic, branches remain a key channel for reaching customers.
- “Our branch network is the heartbeat of our retail business, offering friendly and convenient service to the millions of customers who step through our doors every single month,” Alex Overstrom, head of retail banking for PNC, said in a statement
- Chase Bank, the retail banking arm of New York-based JPMorgan Chase & Co., was among the first movers.
- It has been opening branches all over the place, including in the Harrisburg and Lititz areas.
- Bank of America, meanwhile, is planning new branches as part of a push into new markets in Alabama, Idaho, Kentucky, Nebraska, Ohio and Wisconsin, among other places.
- Banks, of course, also are continuing to shutter branches.
- PNC closed an estimated 239 branches last year, according to trade pub American Banker. But the bank also opened 19 in the first 10 months of the year.
The background: PNC is one of the largest banks in the U.S., with assets of more than $561 billion as of the end of 2023.
- Its branch network spans more than 25 states, while its digital banking services are available nationwide, as are its asset management and corporate/institutional banking services.
