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Bloomberg
Bank of America Corp (BofA) is expanding its investments in digital channels as customers shift their transactions online in record numbers.
Clients logged in to the bank’s electronic platforms 1 billion times in July and 2.8 billion times — an 11% increase— in the second quarter, Bank of America said in a statement. New investments will focus on areas such as budgeting and financial-planning tools, personalisation of apps and enhanced security, according to David Tyrie, head of digital banking and marketing.
Electronic banking is a key part of the company’s effort to expand its online and mobile services, which saw a surge in demand during the pandemic that’s showing no signs of a slowdown. BofA spends $11 billion on technology every year, including $3.6 billion set aside for new initiatives, Tyrie said.
“I would hate to be a small bank or fintech trying to compete with us because of lack of investments and financial backing,†he said. “Banks are defined based on customer interaction, and today it’s all digital.â€
With clients managing more transactions digitally and using online tools for longer-term financial planning, the company is spending to improve existing systems such as its “Life Plan†financial tool for budgeting and savings, according to Tyrie.
Digital expansion can also help cut number of costly branch locations and pare workforces, while making it harder for competitors to poach clients with the allure of better technology.
Retail branches are still useful for bigger transactions and some types of financial planning, but technology is replacing more and more of the need for face-to-face interactions, helping the bank cut expenses, Tyrie said.
Tyrie was put in charge of digital strategy across the company, then expanded his role to include data and marketing efforts last year. His team has hired talent from outside the financial industry for its digital efforts, from firms including Google, Walt Disney Co., Apple Inc., Visa Inc. and Amazon.com Inc.