The digital revolution has forced Bank of America to shut down nearly one-fourth (23%) of its physical branches since 2009. The company also now has 37% fewer workers, according to a presentation on Wednesday.
Bank of America plans to cut another 8,000 jobs from its consumer business over time. The bank teller and back-office positions will come mostly through attrition, meaning jobs will be left unfilled when employees leave.
The company plans to add more sales jobs, mortgage loan officers, personal investment advisers and small business bankers, which will at least in part offset its attrition rate.
BofA’s plans were first reported by the Financial Times.
The shift was inevitable as an increasing number of bank customers began turning towards mobile and PC banking in place of walking into a physical location.
“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.”
Bank of America had 4,689 branches as of the end of the first quarter, down from an average of 6,100 in 2009.
“Fintech is forcing banking to a tipping point,” Citi recently said.
ATM and mobile deposits now make up 68% of Bank of America’s total deposits, compared with 35% in 2009.