Bank of America identified short-term applications for AI in areas of customer support, employee effectiveness and coding enhancements during the third quarter of 2023 as it continues to invest in the technology through talent and innovation.
BIGGER PICTURE: The bank is implementing AI throughout its operations because clients are ready for it, Chief Executive Brian Moynihan said during the bank’s Q3 2023 earnings call today.
For example, active digital usership grew 7% year over year to 46 million in Q3 as AI-driven chatbot Erica usership increased 27% YoY to 170 million active users and CashPro app sign-ins grew 41% YoY to 813,000, according to the bank’s earnings presentation.
BY THE NUMBERS: Bank of America reported in Q3:
- Total revenue fell to $5.3 billion, down from $5.4 billion during the same period last year;
- Noninterest expenses increased 3% YoY to $15.8 billion due to the cost of personnel and technology; and
- CashPro app payments increased 16% YoY to $192 billion.
NOTEWORTHY: The bank’s efficiency ratio clocked in at 63% during Q3, up slightly from 62% in Q3 2022, according to the earnings supplement.
However, the ratio is expected to improve, Moynihan said. The bank over-hired last year and is working to bring headcount down and continues to implement technology and pull back on branches, he said.
The bank’s headcount totaled 212,752 at the end of Q3, down from 213,270 during the same period last year and down from 215,546 during Q2 2023, according to the bank’s earnings supplement.
FLASHBACK: Last year, the bank launched CashPro Payment API in October, and has since continued its investments in the CashPro platform.
In April, Bank of America launched a search function on CashPro and, in September, it launched a business-to-consumer payments solution in Canada through the platform.
FUTURE LOOK: Bank of America will invest $3.8 billion in technology in 2024 across hiring initiatives for AI talent and added efficiencies across the development of AI, Moynihan said.
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