BMO Expanded Branch Footprint and Tech Investments

The bank has launched a growth strategy focusing on new California branches and AI-driven customer tools.

Updated on Oct. 1, 2026 in Banking

BMO Expanded Branch Footprint and Tech Investments

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BMO has initiated a plan to open over 130 branches in California and 15 in Arizona to bolster its U.S. presence. The expansion follows significant financial growth, including a 29.4% rise in net income for the business unit managed by Carolyn Booth.

Why it matters

This strategy aims to strengthen client relationships and leverage digital transformation to improve efficiency. By integrating AI tools like Lexi, the bank intends to streamline operations and enhance the customer experience.

BMO reported $8.2 billion in revenue, reflecting 2.9% year-over-year growth, while managing $288.6 billion in assets. The bank targets $50 million to $60 million in retail deposits at each of its new branches within three years.

The players

Carolyn Booth

She serves as the head of U.S. personal and business banking at BMO.

BMO

This is a diversified financial services provider with approximately $1.5 trillion in total assets.

The details

Carolyn Booth, who oversees the U.S. personal and business banking unit, is leading the effort to scale the branch network after the 2023 acquisition of Bank of the West. The initiative relies on internal data and the 2026 rollout of the Lexi AI tool to support both staff and clients.

1991: Carolyn Booth began her banking career as a teller.
2023: BMO finalized its acquisition of Bank of the West.
Fiscal 2025: The business unit achieved nearly $2.2 billion in net income.
March 2026: The bank announced its California and Arizona expansion.
2026: BMO introduced the Lexi AI agentic tool.

Market Dynamics

This move reflects the broader industry trend of balancing physical branch networks with aggressive digital investment. The strategy builds upon the momentum established by the 2023 integration of Bank of the West.

Retail depositors in the expansion regions may gain access to new physical locations and integrated AI support tools. Investors should monitor whether the $4 billion in assets referred to wealth partners meets the bank's internal growth targets.

The takeaway

The bank is prioritizing a hybrid model that combines traditional physical presence with advanced AI tools. Customers should expect more personalized digital assistance as the bank scales its technological infrastructure alongside its footprint.