Bank of America’s new ‘minimum wage’ could increase pressure on its smaller competitors

The news: Bank of America plans to raise its minimum hourly wage to $24, nearing its commitment to pay each worker at least $25 per hour by 2025. That’s a 60% increase in its minimum wage since 2018, which could challenge local financial institutions’ (FIs’) ability to keep up.

How we got here: Bank of America’s latest branch strategy has been turning up the pressure on local competitors. While many FIs continue to decrease their brick-and-mortar presence, Bank of America plans to maintain its branches, plus:

  • Expand into some key markets, such as Pittsburgh and Salt Lake City, by 2026.