Boston, MA 11/27/2013 (wallstreetpr) – Bank of America Corp (NYSE:BAC), the second largest bank in the U.S. after JPMorgan Chase & Co. (NYSE:JPM) is reducing its location branches as part of cost reduction strategy. The bank’s CEO Brian Moynihan is promising to take the financial institution back to its former glory days. This means seeking for growth and revenue opportunities for the investors while suppressing expenses so that profits can go up.
However, the bank has embarked on a cost-cutting activity that is now raising hackles among its employees, more so the in-branch tellers. Bank of America Corp (NYSE:BAC) is rolling out video ATMs in what is seen as further efforts to cut the bank’s operating expenses. The video ATMs are likely to replace the in-branch tellers with call center assistants who will most likely be paid less than the traditional branch tellers. In-branch tellers like Alex Shalom who has since initiated an online petition against Bank of America Corp (NYSE:BAC) in connection with the video ATMs rollout are worried about losing jobs as the bank favors low-wages in the call center tellers.
The employees are not just worried about losing positions in the bank, but they also say that virtual operation also has the likelihood of alienating some customers. According to various media reports, the lead petitioner Shalom says that in-branch tellers help to build personal connection with the customers which cannot be achieved through a video screen.
While Bank of America Corp (NYSE:BAC) agrees that personal connection with customers is very important for its future, the financial institution disagrees with claims that the reason for going virtual is driven by low wages.
The video ATMs deployed so far are served by remote tellers stationed in more than 60 locations nationwide. Bank of America Corp (NYSE:BAC) has closed more than 180 land-based branches in the past 12 months and more could follow in the coming years. Following the branch shutdowns, the bank is now left with 5,400 brick and mortar branches. Other major banks such as JPMorgan (JPM) and Wells Fargo & Co (NYSE:WFC) are among those shrinking their branch counts.
