According to Securities Times, PNC Financial Services Group (PNC.US) announced that it will invest an additional 0.5 billion US dollars more than originally planned, double the scale of branch expansion, and renovate more existing bank branches. The bank, headquartered in Pittsburgh, plans to add more than 100 branches in cities such as Atlanta and Phoenix, and renovate 200 existing branches. Earlier, in February, the company announced a plan to invest approximately 1 billion US dollars to build more than 100 new branches in Texas, Florida, and Colorado, and renovate more than 1,200 of its existing branches out of more than 2,200 branches across the United States.

Alex Overstrom, head of PNC's retail banking business, said in an interview: "From a demographics perspective, these cities are obviously incredibly attractive. These cities are expanding, and their growth rates are very fast."

Despite online banking, smart phone banking, and ubiquitous ATMs reducing the need for people to visit branches in person, industry executives see the value of having strong physical stores.

Overstrom said: "We still have a considerable number of customers opening accounts at branches, and due to the increased brand awareness, PNC also attracts more digitally-focused customers in markets where it has branches. In addition, customers at physical stores are often more likely to discuss housing loans, retirement plans, and other financial products with bank employees."

In February of this year, the largest bank in the USA, JPMorgan (JPM.US), announced plans to open over 500 new branches and hire 3,500 employees over the next three years. Competitor Bank of America (BAC.US) stated last year that it plans to open branches in nine new markets, including New Orleans, Milwaukee, and Boise, Idaho, by 2026.

PNC's performance in the third quarter, which was announced last month, exceeded expectations, mainly driven by higher net interest income and non-interest income than expected, as well as loan loss provisions lower than analysts' expectations.