Bank of America (NYSE: BAC) released key indicators of its digitalization progress in its Q3 2024 earnings report and released data on its digital transformation strategy.
Key Indicators of Digitalization
Consumer Banking Sector
- Number of digital logins reached 3.6 billion, an increase of 11% year-on-year.
- Digital sales accounted for 54% of all sales.
- 77% of all households actively use digital platforms.
- Number of active digital banking users reached 48 million, up 4% y/y.
- 23.2 million Zelle® users, up 10% y/y. 400 million transactions sent and received, up 24%.
Global Wealth and Investment Management
- Approximately 75% of accounts opened digitally through Merrill and Private Bank.
Private Banking Division
- 92% of clients utilize digital channels.
- 76% of eligible checks deposited through automated channels.
- Digital wallet transactions increased 45% year over year.
- Zelle® transactions up 31%.
Merrill Wealth Management.
- 84% of Merrill households digitally active.
- 75% of bank and brokerage accounts opened with digital onboarding, up 5% YOY.
Global Markets Division
- 32.5K interactions with Erica® technology through implementation of CashPro® Chat.
Background and Objectives of Digitalization Drive
Bank of America is focusing on digitization for the following reasons
- Enhanced customer experience: customers will have 24/7 access to banking services through digital platforms, increasing convenience.
- Improved cost efficiency: reduce the cost of operating physical branches through the use of digital channels.
- Gain a competitive advantage: offer advanced digital solutions to compete with fintech companies and other digital banking services.
- Leverage customer data: analyze data collected through digital channels to provide personalized services.
- Respond to market changes: rapidly develop digital infrastructure as consumers increasingly rely on digital services.
- Driving sustainable growth: Digitalization is part of a long-term growth strategy.
Digitalization Achievements and Future Prospects
Bank of America’s digitization strategy has yielded the following tangible results
- Increases in the number of digital logins and digital sales ratio indicate increased use of digital channels.
- Increased digital onboarding and digital active rates contribute to new customer acquisition.
- Increased use of Zelle® and digital wallets reflects increased customer satisfaction.
Going forward, Bank of America will continue to implement and improve digital technologies to enhance the customer experience and improve operational efficiency. In particular, the company expects to expand its services using artificial intelligence (AI) and machine learning (ML).
Future of Digital Transformation
A number of indicators support the promotion of the digitalization strategy. The expansion of digital channels and the increased use of digital services by customers are contributing to the company’s sustainable growth and competitive advantage. The company is expected to continue investing in digitalization and increasing customer satisfaction through technological innovation.
