Bank of America Says 61% of Consumer Sales Are Made Through Digital Channels

Digital Transformation and Consumer Engagement - 61% of consumer sales are now made through digital channels, up from 49% a year ago [1] - 78% of households are "digitally active," up from 75% a year ago [1] - Interactions with Erica, the virtual financial assistant, reached 171.5 million in the latest quarter, up from 122.9 million last year [2] - Zelle peer-to-peer payments totaled $127 billion in Q4, up from$101 billion in the same quarter last year [2] Financial Performance and Growth - Revenue grew year-over-year across all business segments [2] - Net new checking accounts increased by 1.1 million, and 4 million new credit card accounts were added in 2024 [4] - Consumer deposits stood at $942 billion in Q4, up slightly from$938 billion in Q3 [4] - Commercial loans grew 5% year-over-year, with loan and deposit growth expected to outpace last year's [5] Consumer Spending and Economic Outlook - Consumer spending in the first two weeks of January increased by 4% to 5% compared to last year [3] - The economy is settling into a 2% to 3% GDP growth environment, supported by healthy employment [3] - Credit card loss rates were 3.79% in Q4, up 0.09% from Q3 [5] Deposit and Loan Trends - Consumer banking deposits appear to have bottomed in mid-August, with a floor forming after periods of decline [6] - Average checking account balances are stable at around $9,000, down from a peak of$11,000 in previous years [6] - Increased optimism among clients is driving demand for loan growth and deposit growth [6] Small Business and Commercial Banking - Small business and middle-market lending activity remains lower than pre-pandemic levels [7] - Optimism among small businesses has improved due to a shifting regulatory environment and reduced election uncertainty [7] - The company aims to translate this optimism into increased loan growth [8]