Bank of America to spend $3.7B on tech development in 2023

Bank of America is increasing its technology development spend 9% year over year in 2023 as the bank continues to invest in digitization. The $3.1 trillion bank will spend $3.7 billion on technology development in 2023, up from $3.4 billion in 2022, Chief Executive Brian Moynihan said at the Bank of America Securities Financial Services Conference on Tuesday. [caption id="attachment_185497" align="alignright" width="300"] Photographer: Mark Kauzlarich/Bloomberg [/caption] The technology development spending “goes in different directions,” Moynihan said, noting, “A big part of this is integrating products and services that are out there from the best companies in the world and then figuring out how to make them work better.” The capital the bank is spending is going toward company investment, patent development and software development – both internally and externally, Moynihan said. “It’s software that we can acquire and integrate and then also homegrown software.” For example, the bank invests in payment platform Zelle to enhance its transaction and deposit business, Moynihan said. Another investment the bank made in technology was the development of its AI-driven virtual assistant Erica , which was not built entirely in house, Moynihan said. In fact, the bank gathered a team to develop the natural language processing and analytical capabilities to build the product “for us and with us.” He added there wasn’t a product like a OpenAI ’s ChatGPT at the time that had those AI-type capabilities that could be customized for the bank. Read more on ChatGPT and AI 2022 tech spend The bank tightened its spending in the fourth quarter of 2022 by slowing its hiring and prioritizing cost efficiency, Moynihan said during the bank’s Q4 earnings call last month. The bank’s cost-saving efforts were in preparation for an economic downturn. The increase in technology development spend in 2023 follows a more cautious Q4 , Moynihan said. Spending is being balanced through investment for growth in talent, branches and opening in new cities, he previously said. “We’re paying for this stuff as we go.” Bank Automation Summit US 2023, March 2-3 in Charlotte, is a crucial event on automation technology in banking and will feature a fireside chat with Brinda Bhattacharjee of Goldman Sachs & Co . Register here. <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home" href="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1676663620776.1676670481425.850&__hssc=41615677.34.1676670481425&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link Learn more">Learn more and <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register" href="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1676663620776.1676670481425.850&__hssc=41615677.34.1676670481425&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link register for Bank Automation Summit US 2023">register for Bank Automation Summit US 2023 .

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Bank of America to spend $3.7B on tech development in 2023

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The Language of Bribery and the Challenge of Anti-Corruption Communications

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