BofA Plans to Revamp Branches for One-Stop Financial Services
Bank of America said Friday it plans to increase sales of stocks, bonds and other investments by overhauling its branches to make them more attractive to customers who prefer to do their banking and investment business in one location.
The Charlotte, N.C.-based bank said the plan will start with the make-over of 20 offices and construction of two new offices in Atlanta in October. Customers will have greater access to financial planners, mortgage loan officers and other financial experts and will be able to trade stocks and conduct research.
The bank will consider making similar changes to hundreds of other bank branches after it gets feedback from Atlanta customers.
“People want to get their banking, mortgage and financial planning advice in one location,” said Kenneth D. Lewis, president and chief operating officer of Bank of America. “And a growing number of people want the option to be able to access their online bank or brokerage account from a bank office.”
Analyst David Stumpfe of A.G. Edwards & Sons in St. Louis viewed the program as a sign that Bank of America was looking to improve its franchise rather than focusing on its next merger target.
“It’s a subtle hint this is a company that’s internally focused for a change,” he said. “It plans to stick to its word and capture the low-hanging fruit. It’s never stopped long enough to see what this franchise can deliver.”
Stumpfe said other banks, including Charlotte-based First Union, also have been trying to find ways for their branches to compete with brokerages and other financial services companies.
At the same time, he said, Bank of America must avoid the kinds of mistakes that were made by First Union, which lost thousands of customers last year when it tried to modernize branches by replacing tellers with telephone services.
The bank later announced it was hiring as many as 2,000 new tellers to beef up customer service.
Shares of Bank of America were down 75 cents on Friday to $51.75 on the New York Stock Exchange--off 24% from its 52-week high of just under $68.
The decision to remake the banking centers has been accelerated by customers who are using the Internet. About 2.5 million Bank of America customers have signed up for online banking and more than 700,000 have signed up for electronic bill payment, Lewis said.
The bank reported this month that second-quarter earnings were $2.06 billion, or $1.23 per share, essentially flat from a year earlier. Net income in the same quarter last year was $1.92 billion, or $1.07 per share, including a $145-million after-tax merger-related charge.
