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Bac Stock CEO Reveals Intent to Concentrate on Digital Assets and Cryptocurrencies at a Congressional Hearing

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BAC stock was at $33.88 on Wednesday as of 10:12 AM EDT

When he meets before the House Committee on Financial Services on Wednesday, Bank of America (NYSE:BAC) CEO Brian Moynihan plans to talk about a variety of issues, including the lender’s growing participation in both its digital investments and cryptocurrency research.

According to his prepared testimony, Moynihan will discuss the bank’s plan to spend $3.5 billion in 2022 “on initiatives to strengthen our platform, support next-generation projects, and extend our digital leadership into the future.”

The BofA CEO will note that this comes as its digital banking platform continues to witness greater client adoption and engagement and that more than 1B user log-ins occurred in July, “our highest single month in history.”

Bank Of America Rose As Reports On The Formation Of A 3,500-Person Wealth Lending Group Spread

In 2018, BAC unveiled Erica, an AI-powered virtual assistant for financial services. The total number of Erica interactions for BAC consumers tripled to 427M in 2021. In contrast, Zelle is a digital payments service provided by Early Warnings Services, which is owned by Bank of America together with a few of the biggest banks in the United States. According to Moynihan, the total number of active Zelle subscribers increased by 23% to 15.8M during 2021.

According to him, “through careful client selection, we are engaged in talks regarding capital raising, M&A, and other financial services with select enterprises involved in the digital asset ecosystem” within the developing crypto field. We are investigating the use of this [blockchain] technology in a number of areas, such as tokenizing internal client papers, instant cross-border payments, and bank accounts, and looking into ways to offer workers speedier access to their earned money.

Moynihan will also emphasize the lender’s decision to lower its clients’ overdraft fees as part of a broader initiative by the banking industry to increase client loyalty. As fintech companies fought for customers in January, BofA reduced its overdraft rates and eliminated non-sufficient money fees.

According to the CEO of BAC, consumer overdraft rates will be 97% down from 2009 levels by 2023, thanks to new solutions and improved programs that have been implemented over the past ten years. Customers with consumer checking accounts already saw overdraft-related fees decline by 90% year over year in June and July.

Previously, Bank of America (NYSE:BAC) announces Burkhardt as its new global i-banking strategy chief (Sept. 7).

Bac stock gains

As Bank of America (NYSE:BAC) nears the deadline for its next earnings report, Wall Street will be watching for encouraging signs from the company. The earliest that can happen is October 17, 2022. Bank of America is anticipated to post earnings of $0.80 per share on that day, a decrease of 5.88% from the prior-year figure. According to the most recent average estimate, revenue will total $23.58 billion, an increase of 3.59% over the same quarter last year.

Our Zacks Consensus Estimates indicate that experts anticipate earnings of $3.20 per share and revenue of $93.59 billion for the entire year. These sums would represent modifications of -10.36% and +5.03%, respectively, from the previous year. More on Zach Equity research on Yahoo Finance. 

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