Bank of America Tech Executives See Promise in 5G, 3-D Printing
May 04 2021 - 3:08PM
Dow Jones News
By Sara Castellanos
Bank of America Corp.'s technology executives are interested in
championing new initiatives over the next few years using data
analytics, fifth-generation wireless networks and possibly 3-D
printing, as demand for the bank's digital services has skyrocketed
during the pandemic.
The bank has spent about $3 billion on new technology
initiatives every year for the last 10 years, with the budget
increasing to $3.5 billion this year, according to the company.
Many of those new technology initiatives resulted in the creation
of digital services that were in high demand during the
pandemic.
During lockdowns and social-distancing restrictions, the
Charlotte, N.C.-based company said it saw an uptick in customers
using its AI-based virtual assistant, Erica, online money-transfer
service Zelle and mobile check deposit, among other digital
services.
The bank's technology and business executives spoke about the
company's digital growth at a virtual event on Monday, and said
they're exploring more ways to innovate and keep pace with the
demand for its technology.
"Digital demand is here to stay. That's not going away...now the
question is how can we serve (customers) in more ways," said Aditya
Bhasin, chief information officer for consumer, small business and
wealth management at the bank.
Usage of digital services increased across the industry during
the pandemic in part because branch locations were closed to curb
the virus's spread, said Jason Malo, director analyst at technology
research firm Gartner Inc.
The trend is expected to continue, but that doesn't mean people
will stop going to bank branches once the pandemic is over,
according to Mr. Malo. About 85% of consumers are expected to use a
combination of physical and digital banking services in the coming
years, he said. That means banks will need to continue developing
tools and services across both physical and digital, he said.
Erica, the bank's virtual assistant, has more than 20 million
users to date, up from about 10 million at the end of 2019,
according to the company. The AI-based tool can help customers
monitor recurring charges, receive bill reminders, view account
balances and get a weekly snapshot of their spending, among other
things.
Usage of Zelle also grew during the bank's first quarter, with
90% of commercial and corporate disbursements now being made
through the service. Digital activity among adults in their mid-50s
and above had the highest increase during the pandemic, the bank's
executives said.
For Cathy Bessant, Bank of America's chief operations and
technology officer, one of the most exciting technologies is 3-D
printing, a process in which digital objects can be printed in
three dimensions. The technology could be used as part of a
distributed manufacturing method connected by technology, where the
bank wouldn't have to rely solely on one location to manufacture
products, she said. For example, 3-D printing could be used to
print credit cards for consumers in the event that one of Bank of
America's manufacturing plants needs to be shut down because of a
natural disaster, she said. "That technology is much more important
than the average person thinks it is," Ms. Bessant said.
The bank has yet to find a solid use case for blockchain, the
record-keeping system behind cryptocurrencies, Ms. Bessant
said.
Ms. Bessant and David Reilly, CIO of global banking and markets
at the bank, also spoke at the event about the potential of 5G and
its ability to offer connectivity in remote areas.
The technology promises to increase download speeds for video on
mobile phones and make machines such as drones and virtual-reality
headsets work faster and more efficiently.
"That opens up new application capabilities, video, different
ways to engage with clients than we have traditionally," Mr. Reilly
said.
Bank of America is also focusing on using data analytics and
artificial-intelligence techniques to continue to derive insights
from massive amounts of data while protecting individuals' privacy,
he said. "Data continues to be probably the largest untapped
resource in companies like ours," Mr. Reilly said.
Data analytics efforts could help the bank get better at
tailoring financial advice for each of its 66 million consumer and
small-business clients, beyond what its virtual assistant, Erica,
is providing. "Doing it in a way that feels intimate and personal
for our clients, that's what the future is for us," said Nikki
Katz, the bank's head of digital design and delivery.
Write to Sara Castellanos at sara.castellanos@wsj.com
(END) Dow Jones Newswires
May 04, 2021 14:53 ET (18:53 GMT)
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