| By Jim Bruene on August 17, 2009 6:24 PM | Comments (7) |
When I logged in to Bank of America's online banking Saturday, I was greeted with a pitch encouraging me to use the bank's new online wire and electronic funds transfer (ACH) capabilities. Consumer online banking can now be used to move money electronically to most anyone in the country. Previously the bank allowed consumers to transfer funds only to their own accounts (funds transfer FAQs), either within Bank of America or at other U.S. financial institutions.
This is a capability offered by many major banks including Citibank, ING Direct and others, often powered by CashEdge. What I almost missed was the more interesting news in the last paragraph:
Beginning this summer, wire transfers will no longer be available in your local banking center... (emphasis added)
I haven't been able to confirm whether this is a nationwide change or something that impacts only certain markets or customers (note 1). On the FatWallet forum a member reported seeing the same message Aug 1 on his account. Another member tested the service and reported that the fees were $3 for a 3-day ACH, $10 for next-day ACH, and "varied" for same-day wires.
The bank's online wire transfer FAQs (for California) still point customers to online banking or their local branch.
What it means: When the nation's largest online bank starts talking about reducing branches and takes steps to eliminate a traditional (and labor-intensive) branch-based service, you have solid evidence that branch banking growth has stalled (note 2).
Bank of America login message (15 Aug 2009, 1:30 PM Pacific time)
Note:
1. I was served this message when logging in to my business credit card account. When I logged in to my Washington-based checking account (which runs on a different, and much less feature-rich system, than the rest of BofA), I saw no such message.
2. But not everyone agrees. Rob Cox and Antony Currie argue in today's New York Times that the bank branch still has legs, in part because capital market financing has become more expensive, therefore elevating the importance of retail deposit gathering, a branch strength.
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This is absolutely brilliant.
Not too suprising. We knew eventually everything will go totally web based.
Thats just silly. No personal attention.
This is great news and will no doubt make our lives alot easier. One must however consider the potential secruity issues that may arise in such transactions and furthermore the cost involved, I should iamgine it will put many people off.
How is the transfer done? Did they give tutorials??? And is there any form of verification for security purpose?
Online transfer is just a joke. If you send a large amount, they will put it on hold. When you call, they will ask tons of security questions and will deny the transfer if any of questions answered wrong. I was pissed.
Bank of america is a joke with this new wire transfer update.
I been on hold for 2 to 3 hours. The staff isnt trained on it and the website is faulty.
They suspended my account due to the wrong steps one of their employees walked me through
I always wished i could do transfers online since my business is online but this has been a nightmare. Its been 3 or 4 days now and im currently suspended.
Im ready to close my account because this is rediculous for a simple wire.