Wall Street is going digital and it isn’t coming back.
Big banks are cutting jobs and expanding their presence online, doing more marketing and adding mobile services. And their customers are eating it up.
Second quarter earnings reports showcased a number of trends that might excite investors who hope Wall Street’s banks will be able to fight off digital descriptors eager to chip into their prized lines of business.
In its earnings report JPMorgan revealed it is originating more credit card accounts online in the second quarter of 2015 (62%) than it had a year prior (54%). The bank also reported a year-over-year in online users (nearly 8%) and even greater growth among mobile users (up more than 22%).
What’s shrinking in number? Bank branches, of course. And headcount. More consumers handling transactions and budgets online de-emphasises the need for actual bank staff.
In terms of expanding their online and mobile reach, Bank of America’s quarterly data reflects a similar shift. The bank reported single-digit percentage growth in online operations and double-digit percentage growth for its mobile products.
At a time when consumers have been slow to adopt products like Apple Pay, shareholders should view it as good news that Wall Street banks are increasing mobile adoption among their customers.
More earnings news is on the way Thursday morning, when Citigroup and Goldman Sachs report results.
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