Bank of America Plans to Enter New Orleans Market by 2025
Bank of America, the second-largest bank in the United States, is set to enter the New Orleans market by the end of 2025, as reported by American Banker. Aron Levine, the President of Preferred Banking at Bank of America, revealed the expansion plans during an industry conference. Alongside New Orleans, the bank has identified four other cities for expansion: Birmingham, Alabama; Milwaukee; Madison, Wisconsin; and Boise, Idaho.
With over $2.39 trillion in assets and more than 3,800 branches across the country, Bank of America is a significant player in the banking industry. However, it currently lacks a presence in Louisiana, with the closest branches to New Orleans located in Pensacola, Florida.
While the rise of online and app-based banking has led to a reduction in the number of physical branches operated by major banks, Bank of America has been actively pursuing new markets. Over the past eight years, the bank has established operations in 15 cities, including Denver, Pittsburgh, and Indianapolis. The shift towards digital banking has made it easier for banks to expand into new markets without the need for extensive physical infrastructure.
According to Mara Baumgarten Force, a professor at Tulane University's Freeman School of Business, various factors make it an opportune time for Bank of America to enter the New Orleans market. The recent collapses of Silicon Valley Bank and Signature Bank have prompted customers to shift their deposits towards national banks deemed "too big to fail," such as Bank of America and JPMorgan Chase. Additionally, the acquisitions of local banks by out-of-state businesses have weakened the sense of loyalty towards local institutions, creating an opening for national banks.
New Orleans' status as a popular tourist destination also makes it an attractive market for expansion. Bank of America customers desire access to ATMs without additional fees, and the bank aims to cater to their needs in the city.
Bank of America's decision to enter the New Orleans market reflects its confidence in the local economy. The bank recognizes the potential for growth and profitability in the area, signaling a positive outlook for the region.
Mara Baumgarten Force believes that increased competition will benefit customers by providing them with more choices and diversity in banking services. The entry of Bank of America into the market will offer customers an expanded range of options for their financial needs.