Bank of America on Thursday joined the roster of banks that let customers deposit checks through smartphones and other mobile devices, a move that can help the ailing giant slash costs and jobs.
South Florida's second-largest bank by deposits said customers now can
deposit checks through their iPads and will be able to do so by iPhone,
Windows phones and Android devices within weeks. A mobile application will let
them photograph a check and send the photo for processing as a deposit.
The launch highlights the fast-growing role of mobile devices in banking
and other payments.
Among major banks, Chase introduced mobile check-deposits in 2010. Wells
Fargo, the largest bank in South Florida by deposits, began the service this
year.
Bank of America now has more than 10 million customers using mobile
banking. Adding mobile check-deposit and other services unveiled Thursday
should boost that number significantly, analysts said.
Going mobile helps banks cut costs, trimming the need for automated
teller machines and branches.
Bank of America plans to slash $8 billion a year from expenses by
mid-2015, partly to offset losses from its 2008 purchase of troubled mortgage
lender Countrywide Financial.
In the past year, the North Carolina-based bank has cut more than 12,000
jobs, reducing its workforce to about 275,000. It plans to ax 30,000 positions
in all. The bank also has closed more than 1,500 ATMs this year, mostly at
non-bank locations, about 9 percent of its ATM network, financial reports
show.
Many South Florida consumers welcome the convenience of mobile
check-deposits but cringe at the prospect that new apps -- like other
high-tech innovations -- may eliminate jobs in banking and beyond.
"I never want to see anyone lose their job, especially in this economy,"
said Bank of America customer Anthony McCutcheon, 24, of Pompano Beach. Still,
he embraces electronic banking "as good for the customer."
Wells Fargo account holder Devin Swift, 22, a student from Davie, called
it "a pain" to drive to the ATM to make deposits. He was not aware that Wells
Fargo allows mobile check-deposits in some locales and was mulling a bank
switch because of its rising fees for his account statement. "It's not worth
paying when I don't have to," said Swift.
Pompano Beach resident Greta Cook, 44, said she wished her credit union
offered mobile check-deposits, provided proper security is in place. Her
concern about sending photos: "it's just like e-mail. Who can intercept it?"
Bank of America has prioritized safety in mobile and online banking,
earning high marks from independent groups such as Javelin Research. It
emphasized security in launching a service Thursday that lets customers
transfer cash with just an e-mail address or mobile phone number. Eliminating
the need to share account numbers provides "stronger protection from identity
theft," the bank said.
Bank of America has announced plans to lay off 675 employees in Fort
Lauderdale and 130 others in Hialeah inMiami-Dade County later this year.
