Bank of America has become a global leader in digital banking steadily and without fuss. It has been a quiet route to success for the US financial firm; one done its own way, on its own timetable, and at its own pace.
Money matters of course. BofA’s total annual technology budget is $10.7 billion, of which more than $3.6 billion is dedicated to new initiatives. In the US since the start of 2012, it is a top-300 company for granted patents and it ranks 75th overall in 2022.
More specifically, it has 716 artificial intelligence patents, some granted and some pending, of which 71 relate to Erica, which the bank describes as the “most advanced AI-driven financial assistant in the industry”, assisting 17.8 million active users in the first quarter of 2023 alone. Clients spent 3.1 million hours ‘conversing’ with Erica in 2022, up 31% year on year.
That frees up human and financial capital that the bank can deploy more efficiently elsewhere. BofA reckons that by using Erica, more than 98% of its clients find the information they need without having to be connected to a manned service centre.
Every year, the bank’s digital team gets better at what it does. It reckons 75% of small business and retail customers were digitally active in 2022, against 73% the previous year – a record. That share rises to 76% with commercial, corporate and business banking clients, and 92% with customers of its private bank.
Its wealthy and super-wealthy clientele benefit from the bank’s longstanding investment in tech. Assets under management at its Merrill Edge Self-Directed and Merrill Guided Investing platforms grew from zero six years ago to around $16 billion today. High net-worth customers turn to it for advice from the lender’s chief investment office, which disseminates real-time market briefs and daily market insights via client calls and webinars.
“Digital has become the door to Bank of America,” says David Tyrie, chief digital officer and chief marketing officer. “We’re focused on the client and the future of the digital experience – using client feedback and data to continue improving our digital offerings. We are creating a world where every interaction with our clients is relevant and timely, supporting each of them at every step of their financial journey.”
We are creating a world where every interaction with our clients is relevant and timely
David Tyrie
Its customers in the US and Canada can tap into a wide range of digital services and offerings. The BofA mobile app lets customers view their financial holdings, communicate with advisers and gain visibility on new ideas and services. Merrill Advisor Match is a new, research-based digital platform that connects clients with advisers whose expertise precisely fits their needs.
Zelle, a specialist service that serves smaller enterprises, continues to go from strength to strength. In the first quarter of 2023, customers sent and received 275 million Zelle transactions worth a record $84 billion, up 29% year on year.
Chief financial officers and treasurers at larger corporates use BofA’s CashPro platform to gain access to information on key data. In 2022, the app processed over $1 billion on more than 200 separate days. In the full year 2022, CashPro processed $655 billion in payments, up from $40 billion five years ago. And it continues to grow in popularity and reach: in the first quarter of 2023, the number of sign-ins on the application rose 52% year on year, with clients using the service to, among other things, upload documents digitally.
