It’s been a busy couple of weeks for Los Angeles’ banking scene as it welcomed three new branches, two from Minneapolis-based U.S. Bank and one from City National Bank headquartered in downtown.

Sekou Kaalund, co-leader of consumer and business banking and head of branch and small business banking at U.S. Bank, said that California – and Los Angeles in particular – is a major priority for the bank, noting that they already have 200 branches, 4,000 employees and nearly 1 million customers in the L.A. area.

This focus comes after U.S. Bank’s acquisition of Union Bank at the end of 2022, which added hundreds of California branches. Plus, the state’s status as the fifth largest economy in the world is a natural attraction.

Additionally, Kaalund said investing in L.A. County aligns with the bank’s goal of serving more low- and moderate-income customers depending on which part of the county you look at.

U.S. Bank debuted its two new branches located in Commerce and El Monte at launch events during the last week of February.

“We see these two spots as well positioned and high traffic in terms of both (being) in commercial centers with different stores,” Kaalund said. “We saw that as a great opportunity to serve local businesses, support nonprofits and obviously do as much as we can for consumers across both of those cities.”

Adjusting the purpose of bank branches

As the shift toward online banking services continues to be at the forefront of people’s everyday banking transactions, Kaalund said U.S. Bank adjusts the purpose and goals of its branches. Gone are branches with 12 teller lines. Instead, the focus is on engagement, communication and advice when it comes to customers’ financial journeys. Location is also a factor when determining branch distribution.

“We continue to invest in our branch network … though we may rationalize branches here and there because we’re investing according to population flows, growth and opportunity,” Kaalund said. “But branches are still a core part of our strategy, the storefront for all of U.S. Bank because when people see that branch, that for them is their first experience with U.S. Bank.”

This rationalization can be seen as the bank had 117 net branch closings in 2024, according to S&P Global.

As for balancing technology and human customer service, Kaalund said he sees it as “human plus digital; it’s not an either/or – it’s a both.”

For example, AI can be useful to prepare a banker with information targeted more specifically at an individual customer’s financial goals when having those in-person conversations, Kaalund said. Additionally, the bank’s online platform has a “co-browsing” feature which essentially mimics a FaceTime call where a banker can walk the customer through different services or features of the U.S. Bank app.

CNB heads southeast

Meanwhile, City National Bank officially unveiled its new branch in Whittier on March 1, marking the bank’s first branch opening in Southern California in four years.

Comprised of two buildings connected by a courtyard, the new branch features a traditional branch building as well as an annex which the bank said will be used for community events and seminars.

While the number of bank branches in the United States has been shrinking since 2012, 2023 marked a turning point when the number of branches actually increased by 92 from 2022, according to data from the Federal Deposit Insurance Corp.

Similar to Kaalund’s perspective, CNB Chief Executive Howard Hammond said with the onset of mobile banking, physical branches now play a “more advice driven and centric” role in banking during a previous interview with the Business Journal.

“During those big financial decision points in your life, people still want to talk to someone and get validation, because if you make a mistake, it can impact your family for the next 25 years,” Hammond said.

The Whittier branch will be led by Gloria Dominguez who has been at CNB since 2021.

“The opening of our new branch in Whittier marks an exciting milestone for our bank,” Dominguez said in a statement. “It’s a testament of our commitment to serving our clients and where we plan to strengthen our connection with the Whittier community.”

One way the bank has worked with the community thus far is getting acquainted with local schools. CNB recently donated a book vending machine to Ada S. Nelson Elementary which is just over 2 miles from the new branch.

David Cameron, executive vice president and head of consumer banking at CNB, said the bank plans to become “a trusted member” of the city.

“We are very happy to be a part of the Whittier community and look forward to serving the local businesses, entrepreneurs, individuals and families who call Whittier home,” Cameron said in a statement.