Individuals who sign up for Bank of America Corp.'s new "eBanking" account must use the financial institution's ATMs to check account balances, make deposits and withdrawals or they will charged a one-time $8.95 fee when they request a paper statement or visit a teller for routine transactions. Bank of America, however, won't charge "eBanking" customers a fee for transactions that ATMs can't handle, such as depositing coins.
The Charlotte, N.C.-based bank outlined the new guidelines, which emphasize the importance of the company's industry-leading ATM network, prior to the Aug. 6 rollout of its eBanking platform. The eBanking account is free for cardholders who bank online and use the financial institution's mobile banking, text messaging and ATM platforms, Tara Burke, a bank spokesperson, tells ATMmarketplace.com. Nearly 5 million BofA cardholders participate in mobile banking. Figures for its text banking program were not immediately available. Mobile banking customers can check account balances, transfer funds between accounts and pay bills, but they cannot withdraw cash or deposit funds.
"EBanking is for customers who want to rely on Bank of America's self-service channels," Burke said. That appears to be a huge market based on the results of BofA's pilot program, which launched November and will continue until August in Georgia. More than one-third of participants chose eBanking, said Burke, who declined to disclose the overall number of applicants.
Although the eBanking account is designed to appeal to younger, tech-savvy customers, many of whom loathe branch visits, David Owen, BofA's payments and products executive, said customers who have opened eBanking accounts so far during the ongoing pilot span a wide demographic base.
Bank of America serves cardholders with a large ATM network. As of June 30, Bank of America operated 18,078 branded ATMs, including 13,800 envelope-free ATMs that accept deposits, issue cash withdrawals and provide account balances. The balance of the bank's ATM network is cash dispensers.
