As banks continue to balance digital adoption with physical presence, decisions around branch networks are becoming increasingly complex. Location strategy, format selection and construction investment now play a critical role in customer experience, operational efficiency, and long-term portfolio performance.
Trends, challenges, and opportunities shaping retail banking
Our US retail banking report 2026 provides a strategic review of the retail banking sector, covering branch network developments, design strategies, and construction cost benchmarking across the country’s leading banks.
Branch activity: two trends, one market
The US retail banking sector holds a unique position within the financial services industry, delivering essential consumer products and services while maintaining one of the largest physical footprints in the professional services landscape. Over the past five years, the 10 most active banks in branch expansion collectively opened 2,356 new locations, accounting for around 64 percent of all new branches among the top 100 banks. At the same time, the 10 most active in closures shut 6,920 locations.
The result is a sector moving in two directions at once. The banks’ gaining ground are not simply opening more branches; they’re opening more selectively while rationalizing where physical presence no longer earns its place.
Smaller footprints, sharper purpose
Average branch footprints have fallen by around six percent over the past decade. This reflects a reduced need for customer-facing transaction space and a growing demand for support functions, driven largely by the continued shift toward digital banking.
Branch construction and network design have become strategic levers, shaping not only operational efficiency but also brand identity and customer experience. These dynamics set the foundation for evaluating how branch networks are built, optimized, and transformed across the US.
Construction cost and what the data tells us
Not all branch formats cost the same. A ground-up build demands significantly more time, budget and planning than a fit-out of an existing space. And across a large network, the variables, project type, location, labor market and design standards, compound fast.
The best-run programs treat property, design and cost as one decision. What to build, where to build it and how much to spend are deeply connected, and at network scale, getting that wrong is costly.
Our full report digs into detail, with cost and schedule benchmarks drawn from real projects we've managed across the US. The report helps banking leaders benchmark costs, assess delivery risks and align branch investment decisions with wider business and customer experience objectives.
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