Bank of America 'may close US branches'

29 July 2009

Bank of America (BoA) may reduce the size of its branch network in the coming years.

The firm, which operates over 6,100 sites across the US, said that its clients are increasingly using the internet and their mobile phones to manage their banking requirements.

Speaking to Bloomberg, president of consumer and small business banking Liam McGee stated that there has been a "strong acceleration" in the number of customers opting to use "virtual channels".

The number of customer deposits made through automated teller machines has also increased, Mr McGee noted.

The Wall Street Journal reported chief executive officer Kenneth Lewis as saying that the number of branches may be decreased by as much as ten per cent, however Mr McGee said that the bank has not set a target number.

"We could possibly have fewer branches, but we have no specific plan around how many banking centers we will have," he remarked.

In related news, BoA recently announced it is to pay nearly $100 million to Parmalat in order to settle a lawsuit related to the bankruptcy of the Italian firm.

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