Boston, MA 11/26/2013 (wallstreetpr) – The rise in mobile and internet banking is taking a tall on traditional banking. More financial institutions such as Bank of America Corp (NYSE:BAC) has shrinking branch operations nationwide in efforts to embrace the more cost efficient mobile and online banking. For this reason, BAC has announced the closure of its Cascade Park branch which ceased operations mid November. The bank’s media relations manager Britney Sheehan confirmed the branch closing on Monday, Nov. 25.
Major banks in the U.S have been reducing their brick and mortar branches as more of their customers switch to online and mobile banking. However, the shrinking of land-based operations is done in such a way that customers are left with a nearby branch where they can continue receiving the traditional banking services. Traditional banking is still very vital in building customer relations and this means that the closure of branch locations is done systematically to ensure that customer experience is not impacted. As such, even with closing of Cascade Park branch, Bank of America Corp (NYSE:BAC) is left with five more locations within a radius of five miles in the area.
Operating branchless helps banks to cut on expenses and deliver more convenient financial services to customers. Banks have been under pressure in recent times with the changing economic landscape and embracing online and mobile banking seems the natural thing for banks like Bank of America Corp (NYSE:BAC) to continue giving value to investors. The bank which is the second largest financial institution in the U.S. in asset base has been able to make impressive turnaround since the financial crisis by driving down it operation expenses while adding more customers to its service list.
Bank of America Corp (NYSE:BAC) is expected to continue its cost reduction to attain its long-term goal of improved profits which is the target of CEO Brian Moynihan. This means that the ongoing branch closing efforts will continue, in other locations where the bank has a concentration of branches.
