Employer deals earn BofA more than $10 billion in deposits, investments

By Thomson Reuters Feb 8, 2024 | 2:03 PM

By Manya Saini and Lananh Nguyen

(Reuters) – Bank of America has brought in $10.5 billion in deposits and investments in the last four years after making deals with companies to provide financial services to their employees, the lender said on Thursday.

More than 450 corporate and commercial clients have enrolled in BofA’s employee benefits and investing program since it was introduced in 2020, and 50 more companies are expected to join by mid-year, according to Aron Levine, president of preferred banking at BofA.

Of the 4 million workers who can access BofA bank accounts and rewards programs through their employers, 20% have tapped the services so far, the bank said. It has attracted $4 billion in deposits and $6.5 billion in client investment accounts via the program.

“Companies want to take care of their employees” by offering benefits and perks that improve retention, Wendy Stewart, president of global commercial banking at BofA, said in an interview.

Bank of America is the second largest U.S. lender. While it reported a decline in fourth quarter profit last month, executives expressed optimism about the U.S. economic outlook, citing consumer finances.

(Reporting by Lananh Nguyen in New York and Manya Saini in Bengaluru. Editing by Gerry Doyle)