Bank of America has 23% fewer branches and 37% fewer workers than in 2009, the bank said in a recent presentation. Further, CNNMoney reports that they plan to cut another 8,000 jobs from their consumer business over time.
Digital transactions are way less expensive and keep customers happy. In fact, BofA said it costs less than a tenth of the expenses of traditional banks. The change in strategy has ramifications in managing the transition of “lost jobs”, but the bank has a strong opinion regarding the future…
“Our strategy is putting everything on the mobile phone. If you have a thumb, you can bank,” Thong Nguyen, Bank of America’s co-head of consumer banking, said at an industry conference on Tuesday.
Rather than look at online banking as “digital disruption,” Bank of America has evidently seen the writing on the wall and will fully embrace the desktop and mobile online banking habits (not to mention retail solutions) that Americans have increasingly moved to.
The article reports that ATM and mobile deposits now make up 68% of Bank of America’s total deposits, compared with 35% in 2009. BofA is not sitting on its collective hands – – they plan to invest more and more in mobile and online solutions in the years ahead.
As the movement to digital continues, banks need to mitigate risk and develop new ways to validate transitions against fraud. This white paper offers suggestions in this area.