Bank of America digitises cash to reduce costs

Monday 11 December 2017 10:40 CET | News

Bank of America is planning to digitise cash to better serve its banking customers and reduce costs.

Cash movement on the P2P payment app Zelle is still small, compared to cash movement via credit cards (10 times more than Zelle) and cash over tellers (five times more than Zelle), the long-term impact of electronification of cash through technology will be huge.

The bank currently incurs up to USD 5 billion in expenses just to move cash around from the institutional side to the retail side.

Aside from Zelle, Bank of America is focusing on other technology innovations to make this possible. The bank currently has a strategy of investing about 1-2% of annual expenses (about USD 500 million) in innovation and technology.

The bank is interested in voice recognition aka Erica – which will roll out in 2018, artificial intelligence (AI), robotics and data distribution networks.

As for Zelle, Bank of America declared Q3 its most successful quarter yet for the app. In November 2017, the bank had five million transactions through Zelle, 35% higher than the average 3.7 million transactions per month the bank reported in September 2017. During that month, BofA said it processed USD 1.5 billion dollars through the app.

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Keywords: Bank of America, cash, digital cash, online banking, banking
Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
This article is part of category

Banking & Fintech