Bank of America, a tech company, says CEO


AAt Yahoo Finance’s All Markets Summit on Monday, Bank of American CEO Brian Moynihan said he viewed the company not only as a banking entity, but also as a fintech company that strives to stay at the forefront of innovation, Yahoo Finance reported. .

With the growth of digital banking services, digital payments have become an essential part of the banking business and account for a large portion of their total transactions; up to October, there had been $ 2.8 trillion in transactions, and about half of those were done digitally.

In results released last week for the third quarter, Bank of America reported 40.9 million active digital banking users, of which 32 million were accessing services from mobile devices.

“We are clearly a technology company,” Moynihan said at the summit. “We spend around $ 3.5 billion a year implementing new codes. New products and services are based on technology.

Bank of America has bolstered its digital offerings in recent years with the incorporation of Zelle, a peer-to-peer payment network that has seen 48% transaction growth over last year, and the introduction of ‘Erica, a voice-activated virtual assistant. which attends “hundreds of millions” of transactions each quarter, according to Moynihan.

“Over the last few years we’ve been able to digitally enable the end-to-end mortgage transaction, and the opening of an end-to-end checking account, and all of those things,” Moynihan said. “We have Merrill Edge … it’s indeed a fast growing, over $ 300 billion business that is in e-commerce, self-directed commerce for customers.”

Bank of America sees the returns on investments it has made to be at the forefront of digital innovation; before reinvested dividends, stocks have risen 80% over the past three years.

Putnam invests in Bank of America

Bank of America has positioned itself to continue to grow by staying innovative and in transition to include digital options in an increasingly digital world. Putnam invests in Bank of America and other value-oriented companies that have growth potential.

The Putnam Large Cap Value ETF (PVAL) is an actively managed fund that seeks to invest in value US companies that have the potential for capital growth, current income, or both.

PVAL invests primarily in large cap companies similar in size to the Russell 1000 Value Index, but may also invest in mid cap companies. As an investment manager, Putnam determines whether a company qualifies as a value stock by examining its valuation, financial strength, growth potential, competitive position in its industry, future earnings expectations, cash flow. treasury and its dividends.

The fund is semi-transparent in that it does not publish daily positions on its website, but instead publishes a tracking basket representative of the daily performance of the fund.

At the end of September, PVAL held 4.94% of Bank of America (BAC), 4.61% of Microsoft (MSFT) and 3.59% of Exelon Corp (EXC).

The fund has an expense ratio of 0.55% and held 44 investments at the end of September.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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