Mobile, web banking popularity cited for B of A closures
Bank of America is planning to shutter about 10 percent of locations in its 6,100 branch network, citing changing customer preferences as more and more consumers turn to online and mobile banking services in lieu of traditional transactions. The Wall Street Journal reports that Bank of America CEO Kenneth Lewis told investors last week that that the closures are imminent, bringing an end to two decades of expansion--according to sources, president of B of A's consumer and small-business bank unit Liam McGee confirmed the plan, but said it would be premature to specify how many locations will shut down, nor did he offer a projected timetable.
Bank of America first introduced mobile banking services in early 2007, offering customers access to a series of solutions including bill payment, cash transfers and account balances. In June 2008, Bank of America announced its unique active mobile banking customers topped the 1 million mark, with two thirds of mobile users under the age of 35 and four out of five under the age of 45.
For more on Bank of America's proposed closures:
- read this Wall Street Journal article