27 August 2016
Find out more

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

28 July 2009  |  7771 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)

A Finextra member
A Finextra member | 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)

Finextra news in your inbox

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

Related stories

E-banking used by four in five online US households - survey

E-banking used by four in five online US households - survey

15 July 2009  |  6119 views  |  0 comments
US mobile banking goes mainstream - TowerGroup

US mobile banking goes mainstream - TowerGroup

26 May 2009  |  7440 views  |  0 comments
Recession-hit Americans turn to Web banking - comScore

Recession-hit Americans turn to Web banking - comScore

22 April 2009  |  7303 views  |  0 comments
E-banking draws half of online US population

E-banking draws half of online US population

13 March 2009  |  7667 views  |  0 comments
Back-office Merrill workers file overtime suit

Back-office Merrill workers file overtime suit

13 January 2009  |  5967 views  |  0 comments
Bank of America offers m-banking apps for Google Android

Bank of America offers m-banking apps for Google Android

23 October 2008  |  11985 views  |  0 comments
Merrill/BoA to cut 'thousands' of IT and operations jobs

Merrill/BoA to cut 'thousands' of IT and operations jobs

20 October 2008  |  7194 views  |  0 comments
Bank of America glitch locks out e-banking customers

Bank of America glitch locks out e-banking customers

23 September 2008  |  5523 views  |  0 comments
Bank of America signs one million to m-banking

Bank of America signs one million to m-banking

11 June 2008  |  7309 views  |  0 comments
Internet banking goes mainstream in US and UK - Gartner

Internet banking goes mainstream in US and UK - Gartner

20 February 2008  |  11678 views  |  0 comments
Bank of America clocks up 15 million e-banking customers

Bank of America clocks up 15 million e-banking customers

12 April 2006  |  5804 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit equens.comVisit www.abe-eba.eu

Top topics

Most viewed Most shared
hands typing furiouslyBig Data's Three Big Trends in 2016
7606 views 5 | 22 tweets | 13 linkedin
hands typing furiouslyHow Banks Are Losing Millions by Ignoring...
7390 views 11 | 24 tweets | 9 linkedin
Nordea looking for AI and blockchain breakthroughsNordea looking for AI and blockchain break...
6503 views comments | 17 tweets | 20 linkedin
R3 blockchain consortium sheds light on Concord projectR3 blockchain consortium sheds light on Co...
5906 views comments | 14 tweets | 14 linkedin
India's Unified Payments Interface goes live with 21 banksIndia's Unified Payments Interface goes li...
5264 views comments | 15 tweets | 18 linkedin

Featured job

Find your next job