Bank of America hikes minimum wage to $25 an hour as it continues to shutter hundreds of branches

Bank of America said its minimum hourly wage will rise to $25, effective in early October, covering all full- and part-time hourly positions in the United States. The raise, from $24 per hour, fulfills a pledge the bank made in 2021 to improve starting pay and create clearer paths for frontline workers. The bank also continues to shutter branches nationwide, a trend tied to customers’ growing use of online and mobile banking.

Sheri Bronstein, Bank of America’s chief people officer, said the higher starting wage supports employees in developing long-term careers at the company. Bank of America closed 168 branches in 2024, the most of any U.S. bank, and has closed 56 more so far in 2025. The wage increase keeps starting pay up about 67% since 2018; with the new rate, full-time employees will earn more than $50,000 annually.

Experts say branch closures are the result of a shift toward online banking as customers increasingly conduct transactions remotely. Fort Lauderdale economist Michael Szanto cited by the Daily Mail noted that, in a digital, paperless economy, the need for physical branches is greatly lessened. Bankrate data reinforce this trend, showing 77 percent of Americans prefer to conduct their banking online via computer or mobile app.

Despite the broader shift online, concerns about access to local services persist. Industry trackers show 2024 saw 1,043 branch closures nationwide, and the pace has accelerated in 2025. Self Financial researchers estimate the net rate of closures has averaged about 1,646 branches per year since 2018. In the most recent six-week window this summer, major banks closed 74 locations, with Bank of America, Wells Fargo and Chase each closing 14 branches—the most among the large institutions during that period.

Bank of America’s strategy illustrates a broader industry balancing act: offering higher pay to attract and retain workers while retrenching physical networks as customers migrate to digital channels. The trend complicates access for some communities, even as banks emphasize efficiency and career development for remaining staff.