28 November 2015

BofA to close 10% of branches as customers go online and mobile - WSJ

28 July 2009  |  7532 views  |  1 Bank of America Logo web screen shot

Bank of America plans to close around 10% of its 6,100 branches in response to shrinking customer demand as people turn to online and mobile banking, according to the Wall Street Journal.

Citing people familiar with the conversation, the paper says bank CEO Kenneth Lewis outlined the plan to investors in a meeting last week.

Liam McGee, president, consumer and small-business, BofA also said there would be branch closures but was unable to say how many locations would be affected.

According to WSJ sources, McGee told investors that the spur for the closures is changing customer preferences. With rapidly increasing numbers of people using Web and mobile banking, people are visiting branches less often.

A recent Fiserv-sponsored survey found that more than two million US households have adopted online banking and bill payment during the last year, meaning the services are now used in over three quarters of homes with Internet access.

Although mobile banking is still in its infancy, this year will see a breakthrough for the technology in the US, as it moves from niche to mainstream, attracting 10 million active users, according to TowerGroup.

BofA Plans to Cut 10% of Branches - WSJ

Comments: (1)

James Van Dyke - Javelin Strategy and Research - Pleasanton | 29 July, 2009, 16:00

I blogged about this on the Javelin Strategy site yesterday. The data about U.S. consumer use of various channels is really quite surprising and often flies in the face of the simple stereotypes. For example, youngest adults are actually the most frequent users of branches (for non-cash reasons)

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

15 July, 2009
26 May, 2009
22 April, 2009
13 March, 2009
13 January, 2009
23 October, 2008
20 October, 2008
23 September, 2008
11 June, 2008
20 February, 2008
12 April, 2006

Related company news

Your browser is unable to support Flash files.

Who is commenting?

Finextra Member Commented on: EPC publishes proposal...
Finextra Member Commented on: EPC publishes proposal...

Top topics

Most viewed Most shared
BBVA buys 29.5% stake in Atom for £45...
7769 views comments | 34 tweets | 41 linkedin
BNP Paribas to test contactless payment di...
6075 views comments | 17 tweets | 25 linkedin
Former Barclays chief forecasts massive jo...
5911 views comments | 27 tweets | 30 linkedin
Hilton confirms data breach
5358 views comments | 11 tweets | 17 linkedin
Alternative payment methods challenge plas...
5198 views comments | 21 tweets | 23 linkedin

Featured job

up to £95K base, £190K OTE, benefits
London, UK

Find your next job