Bank of America Injects More Capital to Its Digital Offerings

Bank of America has expanded its investments in digital channels as customers shift their transactions online in record numbers. 

Clients logged in to the bank's electronic platforms 1 billion times in July and 2.8 billion times – an 11% increase – in the second quarter. New investments will focus on areas such as budgeting and financial-planning tools, personalisation of apps, and security.

Electronic banking is a key part of the company's effort to expand its online and mobile services, which saw a surge in demand during the pandemic that's showing no signs of a slowdown. Bank of America spends USD 11 billion on technology every year, including USD 3.6 billion set aside for new initiatives.

With clients managing more transactions digitally and using online tools for longer-term financial planning, the company is spending to improve existing systems such as its 'Life PLan' financial tool for budgeting and savings.

Digital expansion can also help cut the number of costly branch locations and pare workforces, while making it harder for competitors to poach clients with the allure of better technology.

(Source: The Paypers)