Bank America is firing employees big-time in 2016. They want to automate the way financial investing is done, moving investors to mobile applications. Mobile investment options and other automated technology are the real reason banks are making cutbacks in North Carolina. North Carolina finance companies are increasingly automating the way investing is done, which means there’s a large likelihood that phone banks will replace financial advisors.
It’s an ongoing trend that warrants a lot of concern in you are watching North Carolina financial firms.
Charlotte, N.C.’s Bank of America is planning to fire corporate jobs by the hundreds if not thousands in 2016, according to one employee who spoke with TopOfBook off the record. (Bank of America spokesman Jefferson George confirmed the layoffs.)
Bank of America continues to cut workers within the company with an aggressiveness not seen since the 2008 Great Recession impacted North Carolina finance companies so negatively. In its report on the profit of their fourth quarter of 2015, the Bank said they are executing on a plan to decrease the number of legacy assets and servicing division employees by 35% between 2014 and 2016.
Ever since the industry saw major consolidations, including the consolidation of Merrill Lynch Advisors and Bank of America Advisors, small businesses and individuals who have been working with big banks are moving toward independent CERTIFIED FINANCIAL PLANNER™ professionals as a way to maintain relationships with their investment advisors. For instance, it’s best to use a local financial planner in your hometown, for instance Concord-based Brian King if you’re a NASCAR driver, or David Rae if you’re an actor living in Hollywood, CA. (Or search for a CFP at http://www.letsmakeaplan.org/choose-a-cfp-professional/find-a-cfp-professional.)
Michelle Moore recently talked about how online banking at Bank of America is changing the face of their business. She runs the bank’s mobile phone applications business and overseas the companies employees who work the call centers.
Brian Moynihan said BofA reduced the number of employees by around 10,000 jobs in 2015.
Michelle Moore talked about the changes in business at Bank of America recently to the Associated Press, detailing how the bank is focusing on new mobile trends rather than traditional commercial banking options:
How does Michelle Moore see the role of a traditional BofA employee changing at North Carolina banks? She says there’s not a lot of changes coming, but you be the judge:
They are not going away any time soon. The opportunity for tellers is to help introduce customers to these new technologies, be somewhat of an ambassador for these new features, and over time can become relationship bankers. We recently changed the title of our tellers to “financial center client service representative” to better reflect the duties they are now doing beyond the traditional bank teller role. –Michelle Moore
Bank of America’s Brian Moynihan says 60% of the expenses of the Bank from people.
In the meantime, SeaBridge Investment Advisors LLC has dramatically reduced its holdings of shares in Bank of America by nearly .02%, which doesn’t sound like much until you consider the statement it’s sending. SeaBridge Investment Advisors LLC’s stock in Bank of America is nearly $14 million according to recent reports.
We’ll keep a watch on what happens when relationship banking changes in North Carolina. But with current trends headed toward automation, there’s a good chance your conversation will be with a phone bank rather than a familiar person the next time you’re asking about your investment planning at Bank of America.
- See more information on BofA layoffs at http://www.bizjournals.com/baltimore/news/2016/02/26/more-layoffs-at-bank-of-america.html