Bank of America (BAC) recently announced that for the first time, the deposits done with the help of mobile devices such as smartphones and tablets have outpaced than that of made at its branches. The BAC proclaimed that the customers had logged into the mobile app of the bank for about 1.4 Billion times in the last quarter.
The fast acceptance of mobile banking is allowing big banks to minimize the number of pricey branches they are operating.
A vast network of BAC branches was cut down to 4,411 at the end of June 2018. The company was operating about 1,720 lesser branches than it had in June 2008. Reportedly, it was a 28% drop in the number of branches. Simultaneously, active mobile banking users of BAC were increased by 11% and reached 25.3 Million over the past year.
Brian Moynihan, CEO, BAC, highlighted that there is an increase in the use of mobile banking because of the young generation. He also pointed out at the high levels of mobile banking activity by the grandparents as well.
On a related note, Daniel Ives, Chief Strategy Officer, GBH Insights, stated that there has been a clear shift in the banking sector with much more aggression. He added that the technology companies are attempting to get further established in the lifestyle of the consumer.
In the recent future, Amazon may allow its customers to transfer cash to each other with the help of Alexa. Also, it may allow depositing the money in an Amazon-branded checking account. Reportedly, Apple is on the way to launch a joint credit card in partnership with Goldman Sachs. This card would hold the Apple Pay brand.
Even Facebook has also recently created a team to discover the power of blockchain that will allow creating its own cryptocurrency for payments. All these experiments of big technology companies with finance are aimed at developing the relationships with their young customers.