Bank of America (BofA) is, reportedly, planning to close more branches in 2014 as mobile banking continues to take majority of the market share.
BofA chief financial officer, Bruce Thompson, said the number of physical bricks and mortar locations will contract further and could drop to less than 5,000 by the end of 2014.
The move by BofA comes after it reported 20% increase in the number of mobile banking customers to 14.4 million in 2013, up from 12 million in 2012, driven by mobile cheque deposit service.
According to BofA CEO Brain Moynihan, the increase in mobile banking was primarily due to an investment of around $500m on mobile products and services made in the last three to four years.
The rise in mobile banking though has had effect on the bank’s branch network, which reduced from 5,478 in Q4 2012 to 5,151 in Q4 2013.
