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. New investments will focus on areas such as budgeting and financial-planning tools, personalisation of apps, and security.
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. Bank of America spends USD 11 billion on technology every year, including USD 3.6 billion set aside for new initiatives.
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.
Digital expansion can also help cut the number of costly branch locations and pare workforces, while making it harder for competitors to poach clients with the allure of better technology.
According to a Deloitte study, almost every bank, large and small, saw a spike in digital banking usage. For instance, Wells Fargo saw a 35% increase in remote check deposits and a 50% growth in online wire transfers in 2021. The pandemic even pushed many customers to use mobile banking for the first time, especially in the older cohorts.
Many banks saw a record growth in digital banking usage and welcomed first-time users. Bank of America, for instance, noted that 7 million clients used Erica, its chatbot, for the first time during the pandemic. Digital channels accounted for 61% of US Bank’s total loan sales in the three months ending February 2021, a jump from 39% in 2020.
By 2030, banking customers will expect banks to know them and be integrated in their lifestyle. They expect automated, intuitive, and user-friendly processes to minimise time and effort when interacting with their banks.
Gen Z and millennial are likely to use mobile banking apps much more frequently than older cohorts, likely for their ‘anytime, anywhere’ banking functionality.
The Chase Digital Banking Attitudes Study found that 99% of Gen Z and 98% of millennials use a mobile banking app for a wide range of tasks, including viewing account balances, checking their credit score, and depositing a check. Gen X and Boomers use mobile banking apps less (86.5% and 69.5%, respectively), but the ones who do are still in the majority.
Despite the generational differences, mobile banking is not going anywhere. Most financial institutions, including banks and credit card issuers, now provide customers with user-friendly mobile apps for their smartphones.
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