NEW YORK—Bank of America would have a difficult time serving its customers if account holders decided to stop using mobile phones over security concerns, the bank’s CEO stated.
“I would have to put up 700 branches. They would have to hire 20,000 to 30,000 people to staff those branches. We just don’t have the capacity,” BofA chief Brian Moynihan recently told Charlie Rose on the journalist’s TV show.
Like a large number of banks across the country, the recession has prompted BofA to boost efficiencies, and that has especially meant reducing physical offices. It is estimated that the bank has shed about 1,200 branches since 2010. At the same time BofA has stepped up its investment in new technology as more consumers migrate to digital channels.
“The CEO’s comments also show how dependent the bank has become on the new technology,” said John Oldshue, founder of SaveOnPhone.com, Birmingham, Ala.
Moynihan also told Rose that the volume of checks being deposited on Bank of America’s mobile platform alone is equivalent to what would normally be handled by nearly 700 branches.
“That is like the 20th-largest bank in the country, sitting there,” he said.