Bucking national banking trends, California-based Wells Fargo is cutting the ribbon on two new Chicago branches this week as it continues to aggressively expand its retail footprint in the city and suburbs.
On Tuesday, Wells Fargo will celebrate the grand opening at 125 S. Wacker Drive in the Loop, followed by a ceremony Wednesday for another new branch at 2411 N. Lincoln Avenue in Lincoln Park.
“We think there’s tons of opportunities to help us bring our entire suite of financial services to one of the most vibrant cities in the country, and definitely the largest where we do not have a significant presence,” said Wells Fargo Regional Executive Matt Ickes.
Wells Fargo, one of the nation’s oldest and largest banks, has had a low profile in Chicago for most of its history. It had just seven branches in the Chicago area when it announced in October 2023 plans to expand to 30 locations “in the coming years.”
With a north suburban Glencoe branch opening last month, the bank is already halfway there, reaching 15 branches in the city and suburbs. That’s up from zero branches at the dawn of the new millennium.
At $1.9 trillion in assets, Wells Fargo is the third largest bank in the U.S. behind JPMorgan Chase and Bank of America, according to Federal Reserve data. It had 4,177 retail bank branches nationwide in 2024, down from 4,311 the previous year, according to its annual report.
In 2008, Wells Fargo acquired North Carolina-based Wachovia for $15 billion, rescuing it from collapse during the Great Recession. The acquisition expanded Wells Fargo’s footprint east of the Mississippi River, adding its first seven suburban Chicago locations.
That was the extent of its Chicago retail presence until 2023, when the bank announced plans to expand to 30 locations. Wells Fargo has accelerated the strategy this year, opening five branches including Division Street, West Loop, Glencoe, Wacker Drive and Lincoln Park.
Next up is a Bridgeport branch, with a grand opening set for June.
The flurry of Wells Fargo branch openings in Chicago runs counter to the broader industry trends – locally and nationally – as retail banking consolidates in the digital age.
The number of bank locations in the U.S. peaked during 2009 — the end of the Great Recession — and has declined annually since.
In 2024, there were 68,330 bank branches in the U.S., down about 2% year-over-year, according to Federal Deposit Insurance Corporation data. Illinois dropped 2.3% to 3,190 branches across the state.
JPMorgan Chase, the nation’s largest bank, has 268 branches in the Chicago market – more than any other bank. But that number is down from 377 locations in 2015, a nearly 30% reduction in its retail footprint.
“Those figures reflect consolidation trends typical in many markets where we have a long legacy,” JPMorgan Chase spokesperson Brian Hanover said. “Like any good retailer, we constantly evaluate our branch network to ensure we’re in the right locations as our customers’ needs change.”
BMO, the Canadian banking giant formerly known as BMO Harris, ranks second in the Chicago area with about 190 locations, holding roughly steady since a 5% branch consolidation in 2021.
Wells Fargo was not among the top 35 banks for Chicago-area retail locations in 2024, according to data from the FDIC. But it is working its way up the list this year, and finding a local Wells Fargo branch may soon be a little easier in the city and suburbs.
While adding branches alone won’t necessarily increase business, Wells Fargo is hoping to attract new customers as it sets up shop in new locations.
“Anyone that expands their retail presence is looking to gain clients from wherever and however we can,” Ickes said. “That’s through a combination of our marketing and advertising efforts, as well as continuing to grow relationships with our existing clients.”
Launched in 1852 as a shipping and banking company to serve the California Gold Rush, Wells Fargo has long been a pioneering institution whose early history includes a stagecoach line immortalized in the late-1950s TV series, “Tales of Wells Fargo.”
Over the years, Wells Fargo evolved through expansion and acquisition into a leading U.S. bank, but a recent scandal cast the storied name in a negative light.
In 2018, Wells Fargo agreed to settle investigations by all 50 states over practices that included opening millions of unauthorized customer bank accounts to meet sales goals. Federal regulators revealed the practice in 2016, which resulted in the departure of Wells Fargo’s CEO and more than $1 billion in fines.
Ickes said new leadership is “steering the bank forward,” with retail expansion in a number of key markets, including Texas, New York, Tennessee and Florida, an integral part of the strategy.
In Chicago, the new 5,833-square-foot Wacker Drive branch provides ATM access, workstations, public Wi-Fi and a digital display wall where bankers can walk customers through a big-screen demonstration of the Wells Fargo app.
During Tuesday’s grand opening, Wells Fargo will also announce its $20 million Open for Business Growth program, which funds nonprofit organizations to help small business owners expand their operations. Launching in Chicago, Wells Fargo plans to roll the program out to other markets over the next year.
And while banking has shifted to digital applications, Wells Fargo is hoping the new bricks-and-mortar outposts will break new ground with customers in the Chicago market who still want to walk into a bank, grab a free pen and talk to a person without navigating menu options or shouting “agent” at their phone.
“We expect to grow our retail suite of financial products, which would be our primary checking accounts, savings accounts, lending, credit cards and digital convenience products,” Ickes said. “Our clients still love to come to our branches.”
rchannick@chicagotribune.com
