Bank of America pours $35B into high-tech spending spree: Moynihan
Investment led to digital banking services including mobile check deposit
Bank of America CEO Brian Moynihan says his company has been pouring billions of dollars into technology.
The $35 billion the Charlotte, N.C.-based lender has invested over the past decade includes $1 billion in mobile banking to “make it better and better," he told FOX Business’ Maria Bartiromo at the World Economic Forum in Davos, Switzerland.. The focus is to make sure the digital services, which are less costly than both branch visits and ATM transactions, offer good feature functionality and are built "secure and to scale," he said.
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Mobile interactions, which include cash transfers and virtual check deposits, are growing at 15-20 percent a year and the number of mobile customers has risen 10 percent annually, Moynihan said.
“Banks spend more on technology than any other industry, and we think this is going to be the decade of banks and technology,” Wells Fargo Securities analyst Mike Mayo told FOX Business’ Liz Claman earlier in January.
He believes that digital banking, electronic payments and the governance of the process “makes or breaks the banks because that allows banks to grow revenues faster than expenses.”
When financial institutions can control expenses, Mayo said, they encounter less pressure to boost revenue with risky loans.
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“Tech is getting married to banks, and it's permanent and it's finally going to work,” Mayo said.