Bank of America sees acceleration in digital sales - Business Insider - Business Insider

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Bank of America saw a 13% YoY surge in digital's share of total sales — marking a significant acceleration from Q2:

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Bank of America counts 38 million digital banking users as of Q3 2019, marking a 5% year-over-year increase. The firm also has 28.7 million active mobile banking users, marking a 10% annual increase — flat with Q2 2019's BofA's digital channel now accounts for 26% of total sales, with mobile representing over half of these digital sales. For context, BofA's digital sales are nearly consistent with JPMorgan Chase's: Digital made up of total sales for Chase in Q3 2019.

This acceleration comes after several quarters of deceleration, signaling a potential reversal for BoFa in quarters to come. It's possible that its recent decline was caused by BofA customers already having opened any personal banking accounts, like checking or savings, leaving room for only new customers to open digital accounts and contribute to digital sales growth.

To maintain this surge in digital sales, BofA could focus on more advanced areas of digital account opening, like mortgage lending: the US mortgage lending industry, which is worth $9.2 trillion. Legacy banks didn't historically have reasons to streamline their mortgage application procedures, which left them largely time-consuming, paper-heavy, and opaque.

BofA's digital mortgage solution could help the bank maintain an upward trajectory in digital sales going forward. The firm offers a "Digital Mortgage Experience," which offers improvements on the mortgage application experience with features like a prefill capability, access to lending specialists, and the ability to upload documents online.

 

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