Despite signs economic growth in the U.S. may be moderating, Bank of America is doubling down with its digital push, betting the momentum in that area can cushion the blow from declining interest income.
In the past couple of years, Bank of America has been spending billions of dollars to grow its digital business. The efforts appear to be paying off. When the Charlotte, North Carolina bank reported first-quarter earnings earlier this week it said it ended the three month period with 27.1 million mobile banking customers that use the app regularly. That’s up 9% on a year-over-year basis. Meanwhile, Zelle, the peer-to-peer payment service had 5.4 million users at the end of the quarter while its take on the voice-activated digital assistant--Erica-- now has 6.3 million users. As it stands, 77% of its deposit transactions are completed through digital methods.
It's also gearing up to roll out a digital portal dubbed Life Plan that helps users achieve financial goals based on the stages of their lives. The platform will be customizable and provide advice and tips focused on different financial stages whether it's purchasing a home, paying for college or saving for retirement.
“Financial services is going through a massive transformation. We know that building lifelong relationships is what really helps them achieve financial goals,” David Tyrie, head of advanced solutions and digital banking at Bank of America said. “Whether things are good or bad, whether you (customers) are doing well or not doing well the objective is to help everybody achieve their best financial life.”