Home India Bank of America’s digital investments continues driving engagement

    Bank of America’s digital investments continues driving engagement

    0
    0

    Bank of America’s digital investments continues driving engagement

    • Bank of America saw decelerating year-over-year (YoY) digital growth relative to Q2.
    • But continued strong engagement across several metrics suggests that its digital investments are paying off.
    • Insider Intelligence publishes hundreds of research reports, charts, and forecasts on the Banking industry with the Banking Briefing. You can learn more about subscribing here.

    The bank’s $20.3 billion in total Q3 2020 revenues marked a 9% drop from Q2 2020 and an 11% drop year over year (YoY), which it attributed to low interest rates and increased pandemic-related operating and litigation costs. But in a positive sign that BofA is expecting better times ahead for its consumer lending business, it set aside $1.39 billion for loan losses, which is far lower than the $5.12 billion it set aside in Q2 2020.

    Bank of America's Active Digital Banking Users Bank of America’s digital engagement holds strong.

    Business Insider Intelligence


    Digital and mobile consumer banking user growth YoY slowed relative to last quarter, but BofA’s continued digital investments appear to be paying off in terms of driving engagement. Digital (mobile and/or desktop) banking users grew just 3% YoY to reach 39.3 million, versus 5% YoY in Q2 2020.

    And mobile users grew 7% YoY to 30.6 million, versus 9% YoY last quarter. This suggests that BofA may be nearing a saturation point when it comes to digital, and will need to double down on satisfying current users to keep them coming back. Robust digital engagement across several metrics points to success in that area so far. Here are two highlights:

    • Activity on digital channels remains strong, with 2.3 billion digital banking logins. This matches the number of logins from Q2. And while YoY growth in average logins per user (5%) declined from Q2 (14%), the continued growth suggests that the pandemic remains a good time for new product discovery: BofA reported a record high of 688,000 digitally scheduled appointments, as well as 813,000 new mobile check deposit users. Twenty percent of the latter were baby boomers, a demographic traditionally less inclined to use mobile banking—and ongoing interest (22% of Q2’s 1 million new mobile check deposit users were in the demographic) could translate to continued mobile banking usage.
    • Users of BofA’s virtual assistant Erica hit 15.9 million, up from 14.4 million last quarter. Pre-pandemic, Erica was primarily equipped to assist with budgeting. Those features could be especially useful amid the pandemic’s economic fallout. But in the past seven months, BofA has gone a step further to bolster Erica’s capabilities: It trained the assistant to recognize 60,000 pandemic-related terms and inquiries, and also upgraded Erica with the ability to provide information on Merrill Lynch portfolio balances and trading activity. The result is a more streamlined remote banking experience for customers who still want to limit branch visits, and the uptick in Erica’s usage makes clear that the upgrades are bearing fruit.

    Want to read more stories like this one? Here’s how you can gain access:

    1. Join other Insider Intelligence clients who receive this Briefing, along with other Banking forecasts, briefings, charts, and research reports to their inboxes each day. >> Become a Client
    2. Explore related topics more in depth. >> Browse Our Coverage

    Are you a current Insider Intelligence client? Log in here.

    Want to hear from the leaders of digital transformation in finance? Insider Intelligence is hosting two free webinars called “The Bank Insider Panel – Acting on Consumers’ Accelerating Digital Adoption.” Click here to reserve your spot.

    Learn more about the financial services industry

    Loading Something is loading.

    More:

    Insider Intelligence
    BI Intelligence
    BI Intelligence Content Marketing
    Finance

    CLICK HERE TO READ MORE

    (the headline, this story has not been published by Important India News staff and is published from a syndicated feed.)

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    %d bloggers like this: