BofA Clients Had a Record 23.4 Billion Digital Interactions in 2023

Rhea-AI Summary

Bank of America's clients had a record 23.4 billion digital interactions in 2023, with 10.6 billion proactive alerts and 12.8 billion logins. The bank now has 57 million digital users, with 35 million opting for alerts. Erica, the virtual assistant, had 673 million interactions, and Zelle saw 21.5 million users sending $373 billion in payments. Bank of America received over 120 accolades for its digital leadership in 2023.

Market Research Analyst

The reported increase in digital interactions and proactive alerts at Bank of America reflects a broader industry trend towards digital banking and personalized financial services. The growth in digital users and the volume of transactions, particularly with the use of Zelle, indicates a shift in consumer behavior that favors convenience and real-time financial management. This shift has implications for the banking sector's revenue models, as digital transactions typically incur lower costs than traditional in-branch services. Additionally, the increased use of digital platforms may lead to higher customer retention rates due to the convenience factor.

From a market research perspective, the adoption rates of digital banking tools like Erica, the virtual financial assistant, highlight the potential for AI and machine learning to further penetrate the financial services industry. The data suggests a positive reception of such technologies among consumers, which could pave the way for more advanced features and integration across banking services. This could also drive competition among banks to continuously innovate their digital offerings to maintain and grow their customer base.

Financial Analyst

The record numbers in digital interactions and the use of Zelle for transactions present a significant opportunity for cost savings and efficiency improvements for Bank of America. The shift towards digital banking reduces the need for physical infrastructure and can lead to lower operational costs. These savings could potentially translate into improved profit margins and could be a point of interest for investors analyzing the bank's financial health and cost management strategies.

Furthermore, the digital engagement metrics could be indicative of increased customer loyalty and a solidified market position, which can contribute to stable revenue streams. However, it is essential to monitor whether these digital interactions correlate with increased revenue or if they simply reflect a change in how existing revenue is being generated. The high engagement with digital alerts and platforms could also provide the bank with valuable data to cross-sell products and personalize services, potentially leading to new revenue opportunities.

Technology Analyst

The integration of AI-driven virtual assistants like Erica into Bank of America's service offerings is a clear indicator of the financial industry's investment in technology to enhance customer experience. The reported year-over-year increase in Erica's active users and interactions demonstrates customer acceptance and reliance on such technologies for financial tasks. The technology's ability to handle a significant portion of client inquiries within the CashPro app suggests that AI can effectively reduce the workload on human customer service representatives, allowing for a more strategic allocation of human resources.

Moreover, the digital deposit rates, especially among Wealth Management clients, show a strong adoption of mobile banking technology, which is likely to continue growing. This trend could lead banks to invest further in enhancing cybersecurity measures as the reliance on digital channels increases the potential risk of cyber threats. It's also worth noting the potential impact of such technologies on the banking workforce, as digital platforms may require different skill sets and could lead to a shift in job roles within the industry.

Real-time alerts offer proactive and personalized insights, helping clients know when to log in and manage their financial lives

CHARLOTTE, N.C., Feb. 12, 2024 /PRNewswire/ -- As Bank of America continues to personalize digital banking, clients are more frequently connecting with their finances digitally. In 2023, Bank of America clients connected with their finances more than 23.4 billion times through a combination of digital logins and proactive alerts – an 11% increase year over year and all-time record.

• Clients received more than 10.6 billion proactive digital alerts in 2023 – an increase of 12% year-over-year – giving them real-time insight into their financial lives. Bank of America now has 57 million verified digital users, among which more than 35 million have opted to receive these alerts. The most common alerts last year offered insights into account balances, deposit available balances, and virtual debit card usage.
• Over the course of 2023, clients also logged into their accounts 12.8 billion times to stay on top of their finances – including a record 3.3 billion logins in Q4, up 10% year-over-year. More clients are checking their finances more often, driving the number of active digital clients, those who have used digital in the last 90 days, to a record 46 million active users, up more than 2.2 million year over year.
• Today, 77% of Consumer and Small Business households actively use Bank of America's digital platforms, as well as 84% of Wealth Management households, and 75% of business clients.

"Our clients unlocked convenience 23 billion times last year through digital interactions," said Nikki Katz, Head of Digital at Bank of America.  "Individualized real-time alerts and proactive insights, along with our digital platform overall, help simplify the day-to-day management of finances. This allows our clients to more easily balance life and enjoy the moments that matter."

In 2023, clients interacted 673 million times with Erica, the most advanced and first widely available virtual financial assistant. This was a 28% increase year-over-year, bringing the total interactions since launch to nearly 1.9 billion. Clients across Bank of America businesses increasingly leverage Erica:

• Erica now has 18.5 million active users, a 12% increase year-over-year.
• Merrill client interactions with Erica exceeded 10 million in 2023.
• Private Bank clients interacted with Erica a record 700,000 times in 2023, up 35% from the previous year.
• CashPro Chat integrated Erica in 2023, with 43% of client inquiries now being answered in the app. CashPro clients also received 19.7 million alerts and insights in 2023.

How clients send and deposit money has also continued to shift toward digital:

• A record 21.5 million clients now use Zelle®. These clients sent and received 1.24 billion payments worth $373 billion in 2023 – both record highs.
• Clients sent more than twice as many Zelle transactions as checks written in 4Q 2023.
• 75% of checks to Wealth Management clients were deposited digitally.
• 75% of Business clients were active across CashPro and BA360.

More information on how Bank of America clients are engaging with digital banking is available in the bank's quarterly Trends in Digital fact sheet.

Bank of America continues to be recognized throughout the industry for its digital leadership, receiving over 120 accolades in 2023. Most recently, Bank of America was named:

• Best Mobile Banking Apps by Forbes
• #1 Overall 4Q 2023 Online Banker Scorecard by Keynova
• #1 Overall 4Q 2023 Mobile Credit Card Scorecard by Keynova
• Merrill Edge Self-Directed was ranked #1 in three categories in the StockBrokers.com 2024 Annual Broker Review
  • Overall Client Experience (for the seventh year in a row)
  • Client Dashboard (for the fourth year in a row)
  • for Bank Brokerage (for the tenth year in a row)

Download the Bank of America app or visit bankofamerica.com.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

Zelle and the Zelle-related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

For more Bank of America news, including dividend announcements and other important information, register for news email alerts.

Reporters May Contact: 
Andy Aldridge, Bank of America
Phone: 1.980.387.0514
andrew.aldridge@bofa.com

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SOURCE Bank of America Corporation

FAQ

How many digital interactions did Bank of America's clients have in 2023?

Bank of America's clients had a record 23.4 billion digital interactions in 2023.

How many proactive digital alerts did clients receive in 2023?

Clients received more than 10.6 billion proactive digital alerts in 2023.

How many times did clients log into their accounts in 2023?

Clients logged into their accounts 12.8 billion times in 2023.

How many verified digital users does Bank of America have?

Bank of America now has 57 million verified digital users.

How many active users does Erica, the virtual assistant, have?

Erica now has 18.5 million active users.

How many clients use Zelle for payments?

A record 21.5 million clients now use Zelle for payments.

How much money did clients send using Zelle in 2023?

Clients sent and received 1.24 billion payments worth $373 billion using Zelle in 2023.

How many accolades did Bank of America receive for its digital leadership in 2023?

Bank of America received over 120 accolades for its digital leadership in 2023.