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Bank of America plans to reduce its branch network down to less than 5,000 areas by the end of 2014, while mobile banking is gaining traction among customers. The bank will remain to purchase its digital financial platforms to adjust to changing consumer banking behavior.
At the end of Q4 2013, Bank of America had 5,151 branches, down from 5,478 branches from one year earlier. The bank reports that 8 million clients go to a branch per week.
“Financial center over-the-counter transactions continue to decrease, however ATM, online and mobile transactions continue to grow,” stated Brian Moynihan, Chief Executive Officer of Bank of America, earlier in this week’s revenues call. ‘ [But] our branches do stay a crucial element of everything we do,” he included.
The future of banking
Going forward, branches take are most likely to take on a different idea – less space will be designated for deals while even more space will be committed to sales. Basically, bank staff can focus on offering to customers as self-service networks can manage most deals.
The transformation in Bank of America’s branch method is greatly the outcome of the company’s $500 million financial investment in digital banking innovation over the past 3 to four years.
“In the 4th quarter of 2013, 9 percent of all the checks deposited by customers experienced the iPads and smart phones,” said Moynihan. “That was up from 7 percent the quarter prior to and did not exist until basically the 3rd quarter of 2012.”
Bank of America offers native mobile financial applications on the following platforms: iOS, iPad, Android, BlackBerry, Windows Phone and Kindle Fire. The majority of the apps enable customers to inspect balances, testimonial deals, pay bills, carry out transfers, receive alerts, deposit checks, browse personalized offers and more.
The bank strategies to maintain its rate of investment in digital banking, Moynihan stated.
Following the trend
Bank of America isn’t the only player in the market that’s responding to the changing financial practices of Americans. Numerous of the country’s largest banks are discovering new branch concepts in response to prevalent adoption of digital financial.
Wells Fargo, Chase and PNC are a few of the other big banks that are piloting brand-new branch formats, technologies and staffing designs.
Wells Fargo is checking smaller branches where lenders roam the floor with mobile devices to assist customers. Chase is replacing some teller counters with self-service kiosks. PNC operates branches that have smarter ATMs that are capable of giving expenses in multiple denominations.
For Bank of America clients, there will be a slight loss of benefit due to the smaller sized branch network. However, with the capability to carry out a lot of daily financial deals with online, mobile and ATM financial, the disappearance of a couple of branches could easily go unnoticed.