Why Investors Are So Excited About Bank of America
In an age of rapid technological advancement, even the most traditional institutions have to embrace the digital evolution to enrich the customer experience and create enough innovation to stay ahead. Bank of America is riding the digital wave and leading the industry into a future of successful digitisation. Does this make it an ideal company to invest in? (The Bank of America is an American multinational investment bank and financial services company headquartered in Charlotte, North Carolina, United States.
Even though Bank of America’s total revenue in the third quarter of this year has stayed flat and its net income has declined, the numbers don’t tell the entire story. There’s a lot to be excited about. Products like investment accounts and credit cards drastically increased and relationships with small businesses also drastically increased which caused a hike in the company’s share price.
Where’s the Growth Coming From?
Part of this growth streak over the past 18 months is the investments the bank has made into technology which included a $3 billion investment in technology and new branches and team players. Consumer deposits grew $38 billion in total which reflects how much clients value the benefits of leading digital capabilities and the bank’s unique preferred rewards program. As more and more consumers are taking their business online, Bank of America is improving their digital platform and adding new features that make it easier to use. Some of the technological highlights that are giving Bank of America prime investment potential are:
- Mobile channel usage increased by 45% among wealth management clients
- Bank of America’s Mobile CashPro doubled over the past year to make $144 billion in approved payments.
- Close to 2.5 billion consumer interactions across digital channels took place totalling 26% of sales.
- Around 13% of financial centre traffic came from digital appointments instead of traditional walk-ins.
Continued Advancement = Prime Investment Potential
Bank of America has a competitive advantage driven by innovation. They are not only leading the way in financial services but also helping to shape the overall landscape of the financial technology sector.