Bank of America Earnings Reaffirm Massive Shift to Mobile

  • JJ Hornblass
  • July 18, 2013
  • 6

shutterstock_141705670Bank of America Corp.‘s second quarter earnings released yesterday make clear this: mobile banking is it.

According to the megabank’s second quarter earnings, the share of customers moving to mobile is significant. This reaffirms the numbers released last week by JPMorgan Chase and Wells Fargo.

(Citigroup, in typical laggard fashion, doesn’t release data for online and mobile users.)

Specifically, BofA’s mobile banking user base grew more than 28% last quarter to 13.2 million compared to the same quarter in 2012. Meanwhile, BofA’s online banking users fell 1.2% to 29.9 million during the same timeframe.

Perhaps more tellingly, the ratio of mobile to online users at all three big banks has jumped substantially:

  • BAC 44.2% / +1,021 basis points
  • JPM 43.5% / +839 basis points
  • WFC 47.1% / +780 basis points

We look at those numbers and see the gears turning away from online to mobile. If this isn’t happening at your bank yet, it will — BofA, Wells and JPM are leading indicators. These numbers should explain why Chase’s retail banking advertising campaign today is centered on mobile banking.

The doubters are going to run the numbers and point out that at the current pace, mobile banking will overtake online banking at Bank of America, for example, in around six years. My response would be twofold: a) six years isn’t that long in the grand scheme of banking; and b) the pace of adoption has accelerated and will continue to accelerate. I’d handicap that milestone at around two to three years at the major banks — and that certainly is not a long time in the grand scheme of banking.

  Like This Post

JJ started the first iteration of Bank Innovation back in 2007, and has been working on it ever since. He also serves as President & Chief Executive Officer of Royal Media, Bank Innovation’s parent. He founded Royal in 1995 and oversees all aspects of the New York-based diversified media company. Prior to forming Royal, JJ was on the editorial staff of American Banker, the daily newspaper, and worked as an editor of a business magazine in Hong Kong. As a reporter and editor, he has won journalism awards from the National Press Foundation, Newsletter & Electronic Publishers Foundation, and the Reader’s Digest Foundation. He has a BS in Economics from Yeshiva University and a Master’s from the Columbia University Graduate School of Journalism. He was also a Fellow at the University of Wisconsin-Madison Graduate School of Banking. He lives in New York City with his wife, two daughters, and son. He counts among his accomplishments one New York City Marathon, two New York City Triathlons and the 2010 Father’s Day 5K, the first race he ever ran with his daughters. He can be reached at hornblass@gmail.com or 212-564-8972.

  • googleplus

6 thoughts on “Bank of America Earnings Reaffirm Massive Shift to Mobile

  1. I am confused. You stated in your Oct. 15th mobile numbers are so low that they aren’t even worth reporting just yet.

  2. Not any longer, fixed price retail web pages have taken care of this problem.
    Well join the crowd because you are not alone my friend.
    With that many requirements it would be no wonder at all that such a method didn’t exist, but you’d be wrong to believe that
    because it’s a reality and thousands of people are making money
    each day using the system I’m about to show you.

  3. By using Google’s products you might be able to make your business more efficient.

    So take is slow, follow the steps mentioned above and you
    can make a load of cash with Google too. So before you dismiss it as an opportunity, take a look at
    these 7 tips on how to make money with Google Ad – Sense.

Leave a Reply