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BMO is embarking on an ambitious, multi-year transformation of its U.S. operations, shifting its geographical focus and doubling down on fundamental banking principles to capture a larger share of the American deposit market. With a target of achieving a 12% return on equity, the bank is reimagining how it connects with both retail and business customers across the country.
Leading this charge is Aron Levine, Group Head and President of U.S. Banking, who joined the organization in 2025. Under his leadership, BMO—currently the 15th largest bank in the U.S. by assets—is prioritizing profitable growth through a blend of aggressive branch expansion in high-value markets and a sophisticated digital acquisition strategy.
Strategic Footprint Optimization: Exiting the Heartland for the West Coast
BMO is significantly altering its physical presence to maximize impact. Last year, the bank reached an agreement to sell 138 branches across several central states, including Nebraska, Kansas, Missouri, and Wyoming, to First-Citizens Bank and Trust. This move signals a departure from lower-density markets in favor of high-growth regions.
In place of these locations, BMO plans to open approximately 150 new branches over the next five years. The primary focus of this expansion is California, followed by Arizona. This “densification” strategy follows the 2023 acquisition of Bank of the West, aiming to bridge the gap between BMO’s current market share in California and its long-standing dominance in the Midwest. Bank officials believe California offers up to 2.5 times the deposit potential of their traditional Midwest footprint.
The Value of Face-to-Face Banking
While many fintechs focus solely on digital growth, Jesse Slovenec, BMO’s Head of U.S. Personal and Business Banking Customer Acquisition, emphasizes that physical branches remain the bedrock of “sticky” deposits. During an interview at The Financial Brand Forum, Slovenec highlighted a critical distinction between digital and physical acquisition:
- Digital Customers: Often driven by the highest rates or lowest fees, digital-only acquisitions tend to have higher attrition rates. These customers are frequently characterized as “hot money” and may not even fund their accounts after opening them.
- Branch Customers: Face-to-face interactions allow bankers to build immediate relationships, lead to higher initial funding, and provide better opportunities for cross-selling additional products.
Slovenec noted that while BMO is enhancing its digital onboarding experience, the bank has found that accounts opened by customers residing far from a physical branch are generally less loyal to the institution.
Reviving the “Bank at Work” Strategy
One of BMO’s most effective, yet traditional, tools for growth is its Bank at Work program. This initiative allows businesses to offer BMO’s banking services as a benefit to their employees, often including exclusive perks or fee waivers. According to Slovenec, this channel is a powerhouse for acquisition, with roughly 90% of participants being brand-new customers to BMO.
The program serves two purposes: it provides branch staff with a proactive way to engage the local business community and acts as an entry point for deeper commercial banking relationships. When a company experiences BMO’s value through an employee benefit program, it often opens the door for the bank to handle the company’s larger credit and business service needs.
The Future: “One Client” and Tiered Rewards
BMO is currently rebranding and evolving the Bank at Work program into a new initiative called “One Client.” This approach aims to break down traditional banking silos, providing a 360-degree view of the customer relationship across various business lines. Key features of the upcoming rollout include:
- HR-Centric Integration: Positioning the program as a service for human resources departments to help reduce employee financial stress through education and better pricing.
- Tiered Reward Structures: BMO plans to offer different levels of benefits to employees based on the size and scope of the corporate relationship. Larger corporate clients may unlock “top-level” rewards for their staff, creating a tailored incentive for businesses to consolidate their banking with BMO.
By focusing on these core fundamentals—geographic density, the human element of branching, and integrated business-to-consumer programs—BMO is positioning itself to be a formidable competitor in the evolving U.S. financial landscape.
Source: thefinancialbrand.com