The news: Bank of America revealed that a pair of digital usage metrics surged year-over-year (YoY) during Q2 2021.
More on this: The bank’s digital engagement-related numbers grew considerably faster than its user base.
The big takeaway: The increase in BofA’s usage metrics, coinciding with a deceleration in digital adoption, suggests a sizable upswing in customer engagement. Focusing on engagement is the next frontier for banks as the growth of their user base reaches saturation.
Even as the banking giant’s digital race changes gears, the data that it released suggests that, with recovery from the coronavirus pandemic underway, some customers have reverted back to performing more complex banking services at branches. Sales made through branches have recovered over the same period, as implied by digital’s share falling from 47% to 44%, despite volume growth.
However, BofA disclosed that customers are not flocking back to branches to make deposits, as 85% of deposit transactions were handled digitally or via ATM, versus just 15% at a financial center—a mix that is unchanged from a year ago. BofA’s data is consistent with consumer’s stated preference for conducting more complex banking services at branches instead of digitally, per a 2020 Deloitte survey.