Investing Port believes that what you are about to read is really not the usual, but could be exciting and beneficial to those who are customers of Bank of America.
Bank of America (BAC) which is the second largest bank in America based on asset (about $2.4 trillion) and the most digitally advanced hopes to pay people who use its mobile app up to $15. Bank of America has close to 40 million customers who bank digitally out of which about 30 million of these customers use the bank’s app and 10 million use its virtual assistant, Erica. However, it seems this large figure is not enough for this second-largest bank.
Starting in the second week of December, the bank will deposit $15 into the accounts of customers if they try mobile check deposit, transfer money to someone via the Zelle app, and use mobile bill pay by Jan. 17.
The Bank of America began the mobile check deposit technology back in 2012, when the USSA debuted the tech in 2009 after it saw that it could dramatically shorten teller lines if it found another way for bank customers to deposit checks. Since then it has become a standard feature for mobile banking apps.
With many customers of the bank being young with considerable experience in digital banking, the Bank of America still has plenty of its customers who are not as comfortable as expected with the latest banking technology and do not yet know the full capabilities of a digital app. This promotion is believed to be a way of nudging them to step into the digital world a bit further.
It is quite unusual to pay people when they paychecks. The bank must have its reasons. According to them, it is quite cheaper to operate the app. Bank of America’s head of Advanced Solutions and Digital Banking, David Tyrie said, “Taking a check into a financial center and handing it to a teller is more expensive than putting it into an ATM, and depositing a check in an ATM machine costs more than mobile check deposit.”
The bank is currently testing making payment to customers to deposit checks and use its other digital offerings as it has about a million users who have not yet used all the functionality of the app. For Bank of America believes that engagement is the key to its digital strategy, which is centered on its Alexa-like chatbot Erica, customization and personalization, and smoother interactions.
Tyrie further said, “It’s one thing to be focused on how many digital users you have, but you will eventually get to a stage where it’s now not about how many users you have but what kind of engagement.”
Going by the bank's view and those of most of its customers, digital is preferable in most cases, and of the 10 billion customer interactions per year, 8 billion of them are also digital customers.
According to Tyrie, “When it comes to transactions, there’s virtually nothing you can’t do on the digital experience that you can do at a financial center except taking out physical cash or get certain documents notarized, but everything else you can do.”