Share of Digital Sales at Bank of America Hits 60%

  • JJ Hornblass
  • July 16, 2015
  • 2

canstockphoto28187945Bank of America might want to change its name to Digital Bank of America.

The Charlotte, N.C., megabank is more digital bank than conventional financial institution today. That’s because 60% of the bank’s “sales” are “all digital now,” Brian T. Moynihan, Chairman and CEO of Bank of America, told investors yesterday.

Moynihan also disclosed that about 6% of the bank’s digital “sales” – it is difficult to identify exactly what he means by “sales,” unfortunately – are via mobile device, “and that’s growing at 300%,” he said.

Moynihan’s disclosures yesterday were the most publicly detailed on digital banking at a major bank to date.

Here are some other metrics for Bank of America’s digital banking for last quarter:

  • Bank of America has 17.6 million mobile users, about 14% more than in the second quarter of 2014;
  • 13% of deposit transactions via mobile; and
  • 10,000 appointments scheduled via mobile device a week, up from 2,000 a year ago.

Moynihan was asked by an investor to what degree all this digital growth will cut expenses. Here’s how he responded:

I won’t give you a 5% reduction or 4% reduction, or any mathematical equation we have done. But I’ll be careful about assuming it will be that ratable — but it would be more based on behavior change. [T]he key is our customers scores have gone up overall and even in mobile channels we’ve gone up year-over-year a 1,000 basis points on our mobile channel “top of the box” satisfaction.

He called that math of satisfaction “a complex thing,” but we don’t see it as such. It is the thing for a brand, and Bank of America, or rather Digital Bank of America, is on it.

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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.

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