Nearly four in 10 (38 percent) U.S. adult consumers never disconnect from their smartphones, and only 7 percent shut down entirely on vacation, according to a new report released today by Bank of America. In examining everyday use, the majority (89 percent) of adults check their smartphones at least several times a day, and more than one-third (36 percent) report they constantly check their devices. This growing dependency is also visible in managing finances: of those consumers who use a mobile banking app, nearly two-thirds (62 percent) access it at least a few times a week or more, while one in five (20 percent) check once a day or more.
These findings are part of the second annual Bank of America Corp (NYSE:BAC) Trends in Consumer Mobility Report, a study that explores mobile trends and banking behaviors among adult consumers who own a smartphone and have an existing banking relationship at any financial institution. The survey found the desire for connectivity is so great that nearly three-quarters (71 percent) of respondents are sleeping with their smartphones, and for many, it is not only their last interaction of the evening, but the first thing they reach for in the morning (35 percent) before their coffee (17 percent), toothbrush (13 percent) or significant other (10 percent).
“We recognize how essential smartphones are to everyday life, and banking is no different,” said Michelle Moore, head of digital banking at Bank of America. “Bank of America has more than 17 million active mobile banking users, and this number is growing by more than 5,000 users per day. We are increasingly focused on providing solutions to meet the expectations of our customers, allowing them to do more with their phones and bank with us when, where and how they want.”
Increasing mobile banking use and payments adoption
The report revealed that more than half (51 percent) of respondents use mobile or online banking as their preferred method of banking. Less than one-quarter (23 percent), including just 6 percent of younger millennials ages 18–24, complete the majority of their transactions at a branch.
While nearly six in 10 (57 percent) respondents have tried mobile banking apps, almost half (48 percent) of all respondents are active mobile banking app users. In further examining current users, prominent activity includes:
- Approximately four out of five (81 percent) receive mobile banking app notifications and alerts, with low balance (43 percent), deposit made (41 percent) and unusual activity (41 percent) representing the most popular alerts.
- More than six in 10 (63 percent) are using mobile check deposit. Adoption of this feature is highest among older millennials ages 25–34, as nearly three-quarters (72 percent) of the generation report using the feature. At the same time, the survey showed a notable increase in those ages 50 and older: this year, 52 percent of that group used the feature, compared to 37 percent last year.
- Nearly four in 10 (38 percent) use their mobile banking app to pay bills; about one-third (32 percent) use the app to locate a branch or ATM; and 15 percent manage investments via the app.
Mobile payments also saw significant growth this year. According to the report, more than half (56 percent) would consider paying someone using person-to-person payments via mobile banking app. More than one-third (34 percent) would consider or already have used their smartphone or wearable device to make a purchase at checkout. (Original Source)
Shares of Bank of America opened today at $17.13 and are currently trading up at $17.2. BAC has a 1-year high of $18.21 and a 1-year low of $14.84. The stock’s 50-day moving average is $16.97 and its 200-day moving average is $16.34.
On the ratings front, Bank of America has been the subject of a number of recent research reports. In a report issued on June 24, Deutsche Bank analyst Matt O’Connor maintained a Buy rating on BAC, with a price target of $18.50, which represents a potential upside of 8.0% from where the stock is currently trading. Separately, on June 17, Oppenheimer’s Chris Kotowski maintained a Buy rating on the stock and has a price target of $21.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matt O’Connor and Chris Kotowski have a total average return of 6.2% and 3.9% respectively. O’Connor has a success rate of 81.8% and is ranked #782 out of 3681 analysts, while Kotowski has a success rate of 70.3% and is ranked #657.
In total, 2 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $18.90 which is 10.3% above where the stock opened today.