How U.S. Bank Drives Untapped Growth in Markets It Already Knows Well

U.S. Bank has spent the last several years optimizing its branch network. Now, in the words of branch network head Sekou Kaalund, “We’re pivoting to offense again.”

Slimming down days are done. Today, the nation’s number five bank by asset size has 2,108 branches in 26 states, down almost a third from 3,223 in 2015. The trend reflects closures, combinations and relocations, according to Kaalund, head of branch and small business banking.

One factor: Many of the closures have been of in-store branches, a strategy eclipsed by technology.

Before we had our digital tools, in-store branches provided access to people over the weekends and after hours, “and you don’t need that anymore,” Gunjan Kedia, president, CEO and director, told analysts during a January earnings briefing.

Time to grow: Now, the bank is opening new branches again.

“It’s not to say that we wouldn’t ever close a branch again,” says Kaalund, “but our focus now is more on investing in branches in our markets. And we have the opportunity within our footprint to create better density.”

Key insight: Kaalund uses the word “densifying” to describe U.S. Bank’s present branching strategy. Meanwhile other large banks have been dropping in offices to establish and then build out beachheads in new markets.

But Kaalund says U.S. Bank prefers to put more chips, if you will, on the spots it knows are producing, rather than spreading them around thinly.

Key risk: Once someone establishes a relationship with another provider, their one-time primary financial institution risks slipping into second place — or even losing the relationship entirely.

Need to Know:

• As the pace of consolidation has slowed, U.S. Bank is investing in branches, everything from updates to appearance, branch technology and the flow of customer interactions to complete tear-it-down-to-the-studs rebuilds.
• In 2024, the bank invested over $85 million across about 90 branches, in 2025 over $335 million across approximately 300 branches. Over the next ten years, U.S. Bank plans to spend $200 million annually on refreshment and modernization.
• The emphasis on revamps and new builds is providing more space for conversations, less space for transactional needs, and in general turning branches into hubs that can produce retail, wealth management, and small business connections.
• Accompanying the change of purpose is a focus on what Kaalund calls “branch choreography” — moving the customer from the front of the branch to the person or persons who can address their needs, be it a business specialist or a retirement savings advisor.

U.S. Bank Digital Chops and Branch Focus Equals ‘Phygital’ Strategy

Kaalund says the bank realizes that, while digital technology has taken over much of rote banking, people of all ages still want to be able to visit a banker for advice, to solve problems, to handle major moves like buying a house.

“The best results come when you have human plus digital,” says Kaalund. “Money’s personal. Even though your money’s not in a particular branch, symbolically it is.”

This is especially significant in that U.S. Bank is a leading digital player. For example, the bank’s noted virtual assistant, U.S. Bank Smart Assistant, and its mobile app rank are highly respected. The bank’s innovation and digital leaders are industry bellwethers.

The two sides of U.S. Bank come together in various ways. One is the bank’s “co-browse” feature.

This functionality enables a customer using the bank’s mobile app or desktop app to ask for live help from a branch officer or other U.S. Bank banker. The banker can see, but not control, the customer’s screen, and appears in a window-in-a-window — a remote approximation of an in-person tutoring session.

“From the comfort of your couch, you can still have that personal touch,” says Kaalund.

Read more: ‘The Branch Is Dead’ … Is Dead: Have We Reached National Branch Equilibrium?