Thanks to digital disruption, the physical presence of Bank of America is shrinking…fast.
Bank of America has 23% fewer branches and 37% fewer workers than in 2009, the bank said in a presentation on Wednesday.
That trend is expected to continue. Bank of America plans to cut another 8,000 jobs from its consumer business over time, a person familiar with the matter told CNNMoney. The bank teller and back-office positions will come mostly through attrition, meaning jobs will be left unfilled when employees leave.
The cuts are not imminent and will be somewhat offset by adding sales jobs, mortgage loan officers, personal investment advisers and small business bankers, the person said. BofA’s plans were first reported by the Financial Times.
Bank of America’s shrinking headcount and branch footprint is a reflection of the powerful shift in habits by users. Instead of walking into traditional bank branches, Americans are growing increasing comfortable with banking on PCs and using their smartphones for everything from money transfers to depositing checks.
Digital transactions are way less expensive and keep customers happy. In fact, BofA said it costs less than a tenth of the expenses of traditional banks.
“Our strategy is putting everything on the mobile phone. If you have a thumb, you can bank,” Thong Nguyen, Bank of America’s co-head of consumer banking, said at an industry conference on Tuesday. “That’s where a lot of our strategy is going to move going forward.”