NEW YORK - Bank of America's CashPro app, a digital banking platform for corporate payment approvals, has seen a significant increase in usage, with approvals exceeding $500 billion midway through this year. This marks a nearly 40% rise compared to the same period last year, with projections suggesting the app could reach $1 trillion in approvals by year-end.
The CashPro app, part of a broader platform serving 550,000 users at 40,000 companies worldwide, has become integral for managing payments, deposits, loans, and trade finance transactions. Its rising popularity reflects a shift in client behavior and digital banking expectations, according to Jennifer Sanctis, head of CashPro at Bank of America.
The app's design focuses on providing a convenient and secure client experience, allowing users to approve and validate payments and monitor account activity from any location and at any time.
The pandemic has accelerated the adoption of mobile banking for business, transitioning from a convenience to a necessity for business continuity. Now, it is an everyday experience with the CashPro app regularly facilitating over $1 billion in daily corporate payment approvals. In 2024 alone, the largest single-day approval via the app reached nearly $8 billion in June, with the record being $11 billion in December 2023.
Bank of America's commitment to client-centered design is evident in the development of the CashPro platform's four channels: Online, App, API, and Connect. Client advisory boards contribute to prioritizing functionalities and enhancements, ensuring the platform meets user needs.
The app's performance has earned it the top mobile ranking in Coalition Greenwich's annual Digital Transformation Benchmarking Study for two consecutive years. Chris McDonnell, head of Community, Commercial and Digital Banking at Coalition Greenwich, attributed this success to Bank of America's investment and commitment to client experience.
Bank of America, a leading global financial institution, provides a wide range of services to consumers, businesses, and corporations. It boasts a substantial retail presence in the United States and a strong digital banking platform with 58 million verified digital users.
This report is based on a press release statement from Bank of America Corporation (NYSE:BAC), which is listed on the New York Stock Exchange (NYSE: BAC).
In other recent news, Bank of America's CashPro app reached a significant milestone, processing a record $500 billion in payments by mid-year, a nearly 40% increase from the same period in 2023. The bank projects that by year's end, the total payments handled by the app will exceed $1 trillion, a substantial increase from the $802 billion recorded last year.
In personnel changes, Kevin Brunner has been promoted to head of technology, media, and telecommunications (TMT) investment banking. This comes as the bank's investment banking operations show signs of recovery, contributing to stronger-than-expected profits in its recent quarterly results.
Meanwhile, Berkshire Hathaway (NYSE:BRKa) has divested approximately $1.48 billion in Bank of America shares, reducing its holdings by about 33.9 million shares. In the realm of analyst ratings, Phillip Securities downgraded Bank of America's stock to a neutral rating, despite an earnings boost, while BMO Capital Markets increased its price target for the bank's stock, attributing the adjustment to robust capital markets-driven revenues.
These are all recent developments, highlighting the dynamic nature of Bank of America's financial performance and strategic direction.
InvestingPro Insights
Bank of America (NYSE: BAC) continues to show robust financial health and investor confidence, as reflected in several key metrics from InvestingPro. With a significant market capitalization of $328.02 billion, the bank's size and stability remain apparent.
The bank's Price/Earnings (P/E) ratio stands at 14.77, indicating a potentially favorable valuation when compared to industry peers. Moreover, Bank of America's commitment to shareholder returns is highlighted by a consistent dividend policy, having raised its dividend for 10 consecutive years and maintaining dividend payments for 54 consecutive years.
An InvestingPro Tip worth noting for investors is that Bank of America has recently experienced a large price uptick, with a 28.02% six-month price total return, showcasing a strong market performance. Moreover, 8 analysts have revised their earnings upwards for the upcoming period, signaling potential optimism about the company's future profitability.
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