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The Surprising Thing That Costs Bank of America $5 Billion a Year

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Data source: Bank of America. Chart by author.

This is why Bank of America is so happy about its 22 million customers who actively use its mobile app to deposit checks, as well as to view account balances and schedule appointments with personal bankers in its branches. One in five checks deposited into Bank of America accounts nowadays are done on its mobile app, with the physical checks never entering its system.

This is also why Bank of America and other banks were so quick to sign onto third-party mobile payment apps such as Apple Pay and Samsung Pay. And it explains why the $2.2 trillion bank encourages customers to use their credit cards by offering them rewards to do so.

All of these innovations reduce the use of cash and checks, which, as we now know, cost a lot more to move from one place to another than anyone would have imagined.

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John Maxfield owns shares of Bank of America. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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