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Bank of America Adds Mobile Users, Sheds Branches

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Mobile users continue to grow at Bank of America. The bank grew mobile users by 4% in the first quarter of 2014, while shedding 1% of its branches. Mobile users reached 15 million, almost 20% higher than one year ago. JPMorgan Chase and Wells Fargo both saw about 5% QOQ mobile user growth. 10% of total deposits by consumers now take place on the mobile channel, according to CEO Brian Moynihan. The number of branches at Bank of America is on the decline. The bank counts 5,095 banking centers, down from 5,389 in 1Q2013 and 5,651 in 1Q2012. That’s a one-year drop of about 5% and a two-year drop of 10%. Somewhere Brett King is smiling. As routine transactions move to online and mobile channels, branches are starting to look like expensive billboards. Seven to 7.5 million customers visit Bank of America branches each week, it was announced today. There are plenty of studies saying branch use is steady or even growing, particularly among Gen Y consumers, but when B of A closes 10% of its branches in two years, that speaks for itself. In related news, consumer banking costs fell 4% from last year. Bank of America’s mobile users […]

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