Brian Moynihan, the Chief Executive Officer of Bank of America, has revealed the company’s ambitious plan to allocate $3.8 billion towards technology initiatives, signaling a commitment to innovation and digital transformation in 2024.
Contrary to an increase in technology spending, Bank of America is not anticipating a growth trajectory in its expenditures in comparison to spending in 2022 and 2023. However, the bank is keen on maintaining its technological edge, given the pivotal role it played in the exceptional performance witnessed in the preceding years.
Digital is the buzzword for Bank of America. The bank’s digital transformation is spear headed by Aditya Bhasin, who is the Chief Technology and Information Officer for Bank of America and is a member of the company’s executive management team.
Aditya Bhasin leads a global team of more than 60,000 employees responsible for designing and delivering technology solutions for all eight lines of business, staff support groups, Global Information Security, Technology Infrastructure and Global Business Services.
Bank of America said the year 2023 marked a significant milestone for the bank, characterized by record-breaking organic customer activity, unprecedented digital customer engagement levels, and high satisfaction scores. In addition to its industry-leading digital platform, the bank expanded its physical presence by opening 52 financial centers, with over half situated in growth markets. This strategic expansion included entering 10 markets, the latest being Omaha.
Bank of America’s global wealth management team demonstrated impressive growth, adding more than 40,000 new relationships across Merrill and the private bank. Advisors successfully opened 150,000 banking accounts for wealth management clients, with the average Merrill account exceeding $1 million at the time of opening, while private bank accounts reached multiples of that figure.
Currently managing an impressive $5.4 trillion of client balances across loans, deposits, and investments for consumer clients in both consumer and Global Wealth and Investment Management (GWIM) sectors, Bank of America reported $84 billion in flows into these accounts for the previous year.
Furthermore, the bank expanded its commercial and business banking clientele by approximately 2,500 new clients in 2023, more than double the additions made in 2022. Despite the commendable growth, Bank of America reported a net income of $3.1 billion, compared to $7.1 billion, with revenue, net of interest expense, totaling $22.0 billion, reflecting a decrease of $2.6 billion or 10 percent.
Highlights by Segment:
Consumer Banking:
Consumer Banking said digital logins for consumer banking exceeded 3 billion, reflecting a 10 percent increase. Digital sales represented 49 percent of total sales. 75 percent of overall households actively used digital platforms. It has a record-breaking 46 million active digital banking users, up 5 percent. New Zelle records 21.5 million active users, and 342 million transactions worth $101 billion. It says nearly 865,000 digital appointments were booked by clients.
Merrill Wealth Management:
Merrill Wealth Management says 83 percent of Merrill households are digitally active. Record 60 percent of Merrill households are mobile active. 80 percent of households enrolled in eDelivery. 75 percent of eligible checks deposited through automated channels. 72 percent of eligible Bank and Brokerage accounts opened through Digital Onboarding in Q4.
Bank of America Private Bank:
Bank of America Private Bank says 92 percent of clients are digitally active. 75 percent of eligible checks deposited through automated channels. Digital wallet transactions increased by 39 percent, and Zelle transactions increased by 37 percent.
Global Banking:
Global Banking says 75 percent of clients across Commercial, Corporate, and Business Banking are digitally active. Record quarterly CashPro App active users increased by 21 percent. Record quarterly CashPro App Payment Approvals value reached $245 billion, up by 35 percent. 40 percent of eligible credit monitoring documents uploaded digitally as of November 2023.
Bank of America, with its 69 million consumer and small business clients, operates through 3,800 retail financial centers, around 15,000 ATMs, and digital banking services catering to approximately 57 million verified digital users in the United States.
Bank of America CFO Alastair Borthwick said: “Robust client activity in 2023 demonstrates how we grow the franchise organically by winning new clients and deepening existing relationships. From record levels of accounts, asset flows, and digital engagement to strong balances and sales and trading results, customers and clients continue to see the exceptional value, power, and convenience our businesses offer them.”
Baburajan Kizhakedath
