Bank of America Inc (NYSE:BAC) has curtailed a number of branches from functioning in San Antonio for the second consecutive year. According to the information from the U.S. Treasury Department office of the controller of the currency; Bank of America has terminated eight local branches in that zone since 2014.
Bank of America’s current policy is to scale down the number of branches all over America. The Prestigious Bank has omitted ten thousands jobs and hundreds of branches throughout America. There were 5300 branches in 2013 but now only 4800 branches remain all around the country. Overall manpower of this bank declined by 16 percent and currently there are only 250000 workers.
Bove, a banking analyst from Rafferty Capital urged that in this era of technology and easy transport, building multiple branches has no specific positive impact in the business. It is assumed that the CEO, Brain Moynihans took certain initiatives to slice up gigantic costs and also to benefit from the era of mobile banking. Bank of America is also troubled right now because it’s battling several lawsuits linked with disgraceful mortgages before the financial crisis hit the market. Spoke person Betty Riess from Bank of America released a statement on behalf of Bank of America. It says “we continue to adapt our financial center network to reflect customers’ preferences and banking behaviors,”
Experts are pointing the rapid raise of mobile banking as the major reason behind slumping of bank branches. Currently there are more than 18 million regular users of mobile banking services and 32 million other users who regularly visit online for financial services. However, face to face trisection are also prioritized on many business deals.
Bank of America stated in their press release that they are assuming financial centers to be growing as important channel in future. More complicated and hassled transactions such as buying properties, paying for college and retirement deals are added in financial centers and to deal with these sort of specific longing, Bank of America is recruiting specialists in financial centers.Bank of America is also considering of opening new location based on customer demands, according to Riess.