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Nearly 1 In 4 Bank Of America Branches Have Been Closed

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Nearly 1 In 4 Bank Of America Branches Have Been Closed

For every four Bank of America Corp (NYSE: BAC) branches that operated in 2009, one is likely closed today.

According to CNN Money, Bank of America now boasts 23 percent fewer branches today than it did seven years ago. The closures aren't due to a failing business, rather a "digital disruption," which makes retail presences outdated and no longer relevant.

The closures have resulted in thousands of employees losing their jobs, which resulted in a 37 percent reduction in total headcount since 2009. On the other hand, automated transactions through mobile devices surged 94 percent over the same time period.

Related Link: A Quarter Of A Million Students Applied To Work At Goldman Sachs This Summer

Mobile transactions are convenient for the consumer as it is always available and quickly accessible. On the other hand, the bank estimates that a digital transaction costs less than a tenth of the expenses of traditional banking.

ATM and mobile deposits account for 68 percent of all of the bank's deposits, up from just 35 percent in 2009.

"Our strategy is putting everything on the mobile phone. If you have a thumb, you can bank," CNN Money quoted Thong Nguyen, Bank of America's co-head of consumer banking, as saying at an industry conference on Tuesday. "That's where a lot of our strategy is going to move going forward."

 

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