Digital engagement is booming, says Bank of America

Bank of America reported a banner year for digital engagement as banks across the United States continue to invest in online banking capabilities.

The bank said it added more than two million new digital customers in 2021, the highest figure for this metric. Verified digital users reached 54 million, an all-time high, while its online platform recorded more than 10.5 billion logins, a year-on-year increase of 15%.

For enterprise customers, more than 85% of small businesses use digital tools, while three-quarters of medium and large enterprise customers do.

It also recorded increased engagement with Zelle, a digital money transfer tool partly owned by Bank of America, as well as more interactions with Erica, its virtual financial assistant. Customers transferred $231 billion through Zelle last year, Bank of America reported, up 64% from 2020.

Digital deposits are also growing in popularity, with 86% of deposits made digitally or through ATM channels, rather than at branches.

Digital expansion is just one example of banks of all sizes expanding their online and digital capabilities. The Covid-19 pandemic and forced remote work have rapidly accelerated the development of these services, but despite the easing of restrictions, digital banking and payments continue to accelerate.

Earlier this month, Pacific Western Bank launched a digital learning platform designed to help customers engage digitally with its services.

Santander has also invested in digital, pledging a $35 million grant to the nonprofit Comp-U-Dopt to improve access to computers and the internet for people from low-income backgrounds.

As banks continue to push for more digital capabilities, a recent report from Eightfold AI emphasized that hiring and training policies must reflect these goals.

Eightfold AI’s report called on banks to rethink their hiring policies to future-proof their organizations and compete with fintech companies.

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