BofA Program Delivers Banking & Investing Benefits and Rewards to 4 Million Employees of Corporate Clients

Rhea-AI Summary

Bank of America's Employee Banking & Investing program has seen significant growth, with over 450 corporate and commercial clients enrolled, providing access to nearly 4 million employees. The program offers financial education, rewards, banking, and investing capabilities to support employees' financial health. The company aims to enroll over 500 companies by the middle of the year. The program has been well-received, with 96% of employers feeling a sense of responsibility for their employees' financial wellness, and companies offering these programs seeing higher rates of employee satisfaction and retention.

Financial Analyst

Bank of America's expansion of its Employee Banking & Investing (EBI) program is indicative of a broader trend in the financial services industry towards holistic financial wellness solutions. The doubling of corporate clients in two years is a strong signal of the program's market acceptance and the potential for cross-selling opportunities. This growth trajectory could positively affect Bank of America's revenue streams and deepen customer engagement. By offering a suite of services that address both short-term liquidity and long-term investment needs, Bank of America is positioning itself as a comprehensive service provider, which may increase client retention and attract new business from companies seeking competitive employee benefits.

From an investor standpoint, this strategic move could enhance Bank of America's competitive edge in the commercial banking sector. As the program scales, it will be crucial to monitor the operational costs versus the incremental revenue generated from new clients and expanded services to existing ones. Additionally, the potential for increased customer loyalty and reduced churn due to these value-added services could lead to more stable and predictable revenue streams, a factor that is often rewarded by the stock market with higher valuations.

Market Research Analyst

Bank of America's report highlighting that 96% of employers feel responsible for their employees' financial wellness, yet only 40% offer such programs, demonstrates a significant market opportunity. The rapid enrollment growth in the EBI program reflects a demand-supply gap in financial wellness offerings. This trend suggests that companies are increasingly recognizing the importance of financial wellness programs as a differentiator in talent acquisition and retention. Moreover, as the labor market remains competitive, employers may continue to seek partnerships with financial institutions like Bank of America to provide comprehensive benefits.

Given the positive correlation between financial wellness programs and employee satisfaction and retention, companies offering these benefits could see a reduction in turnover costs. This could lead to a virtuous cycle where enhanced employee financial health contributes to overall business performance, potentially affecting stock prices of client companies due to improved operational efficiencies and employee productivity.

HR & Benefits Consultant

The integration of financial wellness programs, such as Bank of America's EBI, into employee benefits packages is a progressive approach to human resource management. The focus on financial education through resources like Better Money Habits® and Preferred Rewards Gold Tier benefits aligns with the growing recognition that financial stress can impact employee performance and mental health. Companies that proactively address this by offering financial tools and education may not only see improvements in employee well-being but also in their overall organizational health.

For businesses, the long-term implications of such programs can extend beyond employee satisfaction to fostering a culture of financial responsibility and literacy. This cultural shift can lead to more informed financial decision-making by employees, potentially reducing the administrative burden on HR departments related to financial distress among employees. As more companies adopt these programs, it could become a standard expectation, influencing the competitive landscape for attracting talent.

Growing list of companies adding wellness tools and resources to help employees live their best financial lives

CHARLOTTE, N.C., Feb. 8, 2024 /PRNewswire/ -- Bank of America today announced that over 450 corporate and commercial clients have enrolled in its Employee Banking & Investing (EBI) program – more than doubling the number of companies in the program from two years ago. Introduced in 2020, the program now provides nearly 4 million employees access to industry-leading financial education, rewards, and banking and investing capabilities to support their short-and long-term financial health.

"By the middle of this year, more than 500 companies will be enrolled in our Employee Banking & Investing program," said Aron Levine, President, Preferred Banking at Bank of America. "This accelerated growth reflects employers' interest in providing valuable benefits and resources that empower employees with greater knowledge and tools to manage their financial lives and pursue their goals."

Corporate clients nationwide offering the Bank of America program to their employees range from large and mid-sized companies across a variety of industries. This month, TriNet became one of the newest companies to roll the program out to its more than 333,000 worksite employees and colleagues. Based in Dublin, CA, TriNet is a leading provider of comprehensive human resources solutions for small and medium-size businesses. 

"At TriNet we strive to power the success of small and medium-sized businesses by supporting their growth and enabling their people in addition to providing access to programs such as Bank of America's Employee Banking & Investing program," said Burton M. Goldfield, President and CEO of TriNet. "We are thrilled to partner with Bank of America to offer this amazing program to our valued customers and TriNet colleagues."

According to Bank of America's 2023 Workplace Benefits Report, 96% of employers feel a sense of responsibility for their employees' financial wellness, yet only 2 out of 5 employers offer financial wellness programs. This research study, conducted annually for over a decade, also found that companies who offer these programs will continue to stand out as employers of choice, often see higher rates of employee satisfaction and retention, and noticeable reductions in employee stress.

Through enrollment in the program, companies have the potential to extend greater financial benefits to their employees, including two premier Bank of America solutions:  Better Money Habits® – an online resource and live seminar series on a wide range of topics designed to help increase employees' financial knowledge; and Preferred Rewards Gold Tier benefits which reward members with credit card bonuses, interest rate boosters, and more.  

The Employee Banking & Investing program is part of the company's broader suite of workplace benefits and solutions designed to help meet the near- and long-term financial needs of employees. This complete offering brings together traditional financial benefits – including retirement plans, health savings, equity compensation and non-qualified deferred compensation plans – with a range of banking and lending capabilities from Bank of America and investing capabilities from Merrill to help address employees' financial needs more comprehensively.

Today, 95% of the U.S. Fortune 1,000 companies have a relationship with Bank of America. In addition, the company serves approximately one in five U.S. middle market companies, as well as 4 million small business clients.

"Our corporate and commercial clients appreciate working with a financial institution who understands the unique needs of their company and their employees," said Wendy Stewart, President, Global Commercial Banking. "By helping employers connect their workforces to a range of integrated benefit plans and financial services, we're creating convenience for our clients and a better experience for their employees."

Learn more about Bank of America's Employee Banking & Investing program and comprehensive suite of financial benefits and solutions for employees.

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).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and 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 corporate and commercial clients have enrolled in Bank of America's Employee Banking & Investing program?

Over 450 corporate and commercial clients have enrolled in Bank of America's Employee Banking & Investing program.

How many employees have access to the Employee Banking & Investing program?

Nearly 4 million employees have access to Bank of America's Employee Banking & Investing program.

What is the goal for the number of companies to be enrolled in the program by the middle of the year?

The goal is to enroll over 500 companies in the Employee Banking & Investing program by the middle of the year.

What percentage of employers feel responsible for their employees' financial wellness?

According to Bank of America's 2023 Workplace Benefits Report, 96% of employers feel a sense of responsibility for their employees' financial wellness.

What are some of the benefits offered through the program?

The program offers Better Money Habits® – an online resource and live seminar series, as well as Preferred Rewards Gold Tier benefits.