Bank of America Shuts Branches in Move to Mobile Banking
Bank of America is closing down several branches to put more emphasis on mobile banking. It is also part of the bank’s on-going cost-cutting moves.
According to the bank’s quarterly earnings call, mobile accounts for 13% of all deposit transactions. Bank of America now has over 17 million mobile banking users, an increase of two million from a year ago.
The change is also part of an aggressive cost-reduction campaign, headed by Bank of America’s CEO Brian Moynihan. Some of that may be fueled by the company’s recent legal struggles, which cost the bank $772 million last year.
In the last two years, Bank of America has dropped 10% of its branches and 16% of its employees. The bank has also closed 2% of its ATM locations, though it still remains the second largest bank in the country.
While the bank loses employees in one area, Moynihan is reportedly hiring new sales associates to help “cross sell” bank products to customers. This process has proven to work successfully in the past, allowing the bank to acquire other companies like Merrill Lynch and Countrywide Financial.