(Reuters) - PNC Bank said on Friday it will increase its investment in branch expansion by an additional $500 million to open over 100 new locations and renovate 200 existing ones, doubling down on efforts to reach customers through physical locations.
WHY IT'S IMPORTANT
Though digital banking and online payment solutions have reduced reliance on in-branch banking in recent years, some U.S. lenders continue to invest in their brick-and-mortar presence to boost deposit share.
Banking industry executives also cite a physical presence in the community as crucial for building customer relationships, retaining deposits, ensuring compliance and acquiring small business clients.
BY THE NUMBERS
Its total investment on the expansion is now about $1.5 billion and is aiming to open more than 200 new branch locations in 12 cities across the U.S. over the next five years.
PNC, which operates the fourth largest branch network in the U.S. with more than 2,200 locations, also said it will complete the renovations of 1,400 existing branches over the same period.
KEY QUOTES
"While we offer our clients a variety of different ways to interact with us, our branches continue to be the heartbeat of our retail franchise," said Alex Overstrom, PNC's head of retail banking.
WHAT'S NEXT
The additional investment is set to significantly expand PNC's branch network throughout Atlanta, Charlotte, Orlando, Phoenix, Raleigh and Tampa.