Bank of America closing some Drive-Thru Lanes

[dougskiles]

From Action News Jax, Bank of America is closing some of their drive-thru lanes.

http://www.actionnewsjax.com/content/actionlocal/story/Several-local-Bank-of-America-branches-stop-drive/uidg5JXNXki7mO8jaujZiw.cspx

I believe this move should be celebrated!  Drive-thrus are a significant trip generator and distruptrion to a safe pedestrian environment.  A walk-up bank can also be developed on a lot about half the size.  Kudos to B of A for looking into the future.

[peestandingup]

From Action News Jax, Bank of America is closing some of their drive-thru lanes.

http://www.actionnewsjax.com/content/actionlocal/story/Several-local-Bank-of-America-branches-stop-drive/uidg5JXNXki7mO8jaujZiw.cspx

I believe this move should be celebrated!  Drive-thrus are a significant trip generator and distruptrion to a safe pedestrian environment.  A walk-up bank can also be developed on a lot about half the size.  Kudos to B of A for looking into the future.

Huh?? They sound like they're doing it for cost cutting reasons only (i.e. laying off tellers). Nothing in there about walk-up pedestrian level banking.

Although we are removing the teller services from a small number of drive-up locations, you will continue to have 24-hour access to drive-up ATMs at this and other locations to ensure you can continue to bank from your car whenever you would like.

Sounds like the same exact setup, just without those pesky tellers weighing down their bottom line.

[fsquid]

I've only used a teller twice in the last 4 years.  I usually just use the ATM.

[wsansewjs]

I've only used a teller twice in the last 4 years.  I usually just use the ATM.

This is exactly one of the reasons why they are reducing tellers, because as the technology progresses, there will be less people who can handle physical services, and let the computer / automation do the work.

-Josh

[Jagsdrew]

I wouldn't call it a good thing. B of A is really cutting costs if you look back to an article posted over the summer they are removing free standing ATMs around the United States.  Everything is becoming automated with little human interaction, just like this conversation. 


###

Bank of America is removing some ATMs from malls, gas stations
By Hugh Son and Zachary Tracer
Bloomberg News
Posted: Monday, Jul. 23, 2012
More Information

    Stock quote: Bank of America


Bank of America Corp., targeting $8 billion in expense cuts, reduced its automated teller network almost 9 percent this year by yanking most of the devices deployed at U.S. gas stations and malls.

The bank’s total number of ATMs fell by 1,536 in the first half, a record decline, leaving it with 16,220 as of June 30, the Charlotte-based firm said last week. Bank of America didn’t renew deals to place its machines at sites owned by Simon Property Group Inc., the biggest U.S. shopping mall owner, and gas station operator Valero Energy Corp., said Anne Pace, a spokeswoman for the bank.

“When they put an ATM in a mall or gas station, they have to rent that space in the same way that Sunglass Hut has to pay for their space,” said Bart Narter, a senior banking analyst at consulting firm Celent. “They did the math and probably concluded that these guys aren’t profitable.”

Chief Executive Officer Brian T. Moynihan is shrinking the bank’s footprint to focus on his most profitable clients after regulations squeezed fees and he aborted plans to charge debit- card users $5 a month. Moynihan shuttered 108 branches this year and plans at least 30,000 job cuts in a reversal of the expansion led by his predecessor, Kenneth D. Lewis.

“It’s going to be a smaller platform,” Moynihan said in a November conference. “We have 42 million retail customers; many of those don’t contribute or overcome their cost-to-serve.”

Limited Capability

Bank of America chose to pull most of its ATMs at malls and gas stations because those devices only dispensed cash and some weren’t available 24 hours a day, Pace said in an interview. Customers want to be able to deposit checks at an ATM, she said.

“It’s about convenience and access, that’s what the customers are looking for,” Pace said. “People aren’t banking 9 to 5, they are banking when it’s convenient for them.”

The move stems from Moynihan’s Project New BAC, an efficiency plan that targets $8 billion in annual expenses by 2015. The number of ATMs shouldn’t change much more, she said.

It costs banks an average of $1,700 per month to run an ATM on someone else’s property, compared with $1,100 at a branch, said Tony Hayes, a partner at consulting firm Oliver Wyman in Boston. The difference stems from rental costs and fees for armored couriers to refill machines with cash, he said.

“There are very real expenses to owning and operating ATMs, and since banks don’t charge their own customers to use the machine, the costs are borne entirely by surcharges paid by non-customers,” Hayes said. “In the current environment, banks are unable to support the cost structure they have historically.”

Valero’s Locations

Valero, one of the biggest U.S. refiners, also manages about 1,000 U.S. retail locations mostly in Texas, as well as in Louisiana, Arkansas, New Mexico, Colorado, Arizona, California, and Wyoming, said Bill Day, a spokesman for the San Antonio- based firm. Another 5,000 independently run sites that include other states weren’t covered by the bank’s deal, he said.

“Each side has an option to renew and Bank of America chose not to renew,” Day said in a telephone interview. “The ones that belonged to Bank of America have been removed and in most stores they’ve been replaced by other ATMs.”

Simon Property had 325 retail locations across 41 states and Puerto Rico as of April, said Les Morris, a spokesman for the Indianapolis-based company. The number of mall ATMs hasn’t changed, though the provider has, he said, without specifying who replaced Bank of America.

Market Share

The retreat leaves Bank of America’s rivals with the chance to grab market share, Todd Maclin, head of JPMorgan & Chase & Co.’s retail division, said in February. His company expanded its ATM network by more than 5 percent in the first half, to 18,132 machines. JPMorgan replaced Bank of America as the biggest U.S. lender by assets last year.

“We know a lot of our competitors are underinvesting, and we’re talking that into account as we look at our investment opportunities like branches and ATMs,” Maclin said during the February conference. “But we’ve continued to invest and we think we have shown that it will produce growth.”

Moynihan has told staff that he didn’t care that JPMorgan eclipsed Bank of America in size and emphasized that his company needed to slim down after Lewis spent more than $130 billion in takeovers to gain market share in deposits, credit cards, mortgages and wealth management. In a January employee meeting he called the firm a “leaner, meaner, fighting machine.”

Subscribe to The Charlotte Observer.

[duvaldude08]

But then again, that may add insult to injury. They stated they are removing BOA Atm's from malls, gas stations, stores, etc. Which means you would have to go up to BOA just to use the ATM, or pay a high fee at another banks ATM. I know alot of people who are dropping BOA.

[coredumped]

But then again, that may add insult to injury. They stated they are removing BOA Atm's from malls, gas stations, stores, etc. Which means you would have to go up to BOA just to use the ATM, or pay a high fee at another banks ATM. I know alot of people who are dropping BOA.

Go to publix, buy a pack of gum and get cash back. The gum (or soda, whatever) you can use and the price of that is less than an ATM fee.

Glad to see they're using our $3,000,000,000,000 (that's 3 trillion) to help us.

[spuwho]

The CEO has been pretty clear (NY Times, CNBC, Wall Street Journal) that he will give up market share (especially in unprofitable or non strategic areas) to maintain quarterly profits.

TARP has little to do with the decisions being made for NewBAC.

Several issues still impact the firm in the near term.

- The loss of the .44 debit swipe fee (lowered by Congress to .12)
- Continued mark down on legacy loan assets
- A national account mix that is too heavily weighed at the low end (low balance, high activity) compared to their peers

Look for BAC to continue to reduce its exposure until the loan and credit card situation sorts out.

Expansion of the online/electronic capabilities.

The use of new technologies in the ATM space to replace tellers in lower traffic branches.

[dougskiles]

Lots of bad feelings toward Bank of America, I can see.

We do almost all of our banking (and paying) electronically.  The less people use cash, the fewer ATMs are needed.  It makes sense that they would reduce the number of ATMs.

[duvaldude08]

Lots of bad feelings toward Bank of America, I can see.

We do almost all of our banking (and paying) electronically.  The less people use cash, the fewer ATMs are needed.  It makes sense that they would reduce the number of ATMs.

They are also reducing the convenience factor. Which is something customers want.

[Traveller]

They are also reducing the convenience factor. Which is something customers want.

Something they want, but don't want to pay for.

[If_I_Loved_you]

I left banking behind back in 1994 I'm a Credit Union Partner and have never looked back. Thank God!

[dougskiles]

Lots of bad feelings toward Bank of America, I can see.

We do almost all of our banking (and paying) electronically.  The less people use cash, the fewer ATMs are needed.  It makes sense that they would reduce the number of ATMs.

They are also reducing the convenience factor. Which is something customers want.

People are free to bank wherever they choose.  I don't see it as something to get real concerned about.  Just switch banks.

[peestandingup]

Lots of bad feelings toward Bank of America, I can see.

We do almost all of our banking (and paying) electronically.  The less people use cash, the fewer ATMs are needed.  It makes sense that they would reduce the number of ATMs.

They are also reducing the convenience factor. Which is something customers want.

People are free to bank wherever they choose.  I don't see it as something to get real concerned about.  Just switch banks.

Right. From one scum bag corporate mega bank to another. Choices, right??

Thank god for credit unions though. The rest of the global banking cartel can burn to the ground.

[BackinJax05]

I left banking behind back in 1994 I'm a Credit Union Partner and have never looked back. Thank God!

Same here.    God bless the credit unions.
But whether you use a bank or credit union, the internet has made branch offices obsolete. My CU is in Tampa. I havent set foot in one of their branches in almost 10 years.

By banking online I save gas, dont pollute the air, AND dont endanger pedestrians.