Bank of America Puts AI at the Center of Its Credit Card Growth Plan
The bank is using AI to reshape rewards and branch operations as it targets $20 billion in consumer profit
Bank of America is restructuring its credit card business and expanding its use of artificial intelligence as part of a plan to increase profits from consumer banking. Executives told Bloomberg the bank aims to lift annual profit from the consumer unit to $20 billion by the end of the decade, a level reached only twice in U.S. banking history. Credit cards are a core component of that plan because of their scale, frequency of use, and ability to generate recurring revenue.
The bank said it is investing millions of dollars in technology, including AI systems, to grow its customer base, increase card usage, and improve efficiency. Executives described AI as a tool to improve decision-making across marketing, underwriting, and operations rather than as a standalone product.
AI-driven Targeting and Rewards Redesign
Bank of America is using AI to analyze customer data and determine when individuals are most likely to respond to credit card offers. Executives said these systems help identify life events such as home purchases or marriage, allowing the bank to time outreach more precisely than traditional marketing methods.
The AI-supported targeting strategy is tied directly to changes in the bank’s credit card rewards. Bank of America plans to introduce new incentives for customers who maintain higher deposit balances, linking card rewards more closely to broader banking relationships rather than standalone card spending.
To support customer acquisition, the bank recently increased promotional incentives. It doubled its introductory cash-back offer to 6% for the first year on a spending category selected by new cardholders. Executives acknowledged that incentives and marketing typically take three to five years to break even, increasing the importance of efficient targeting and retention.
Bank of America currently serves about 69 million consumer clients and plans to expand that figure to 75 million by 2030. Executives said AI helps sift through larger datasets to prioritize prospects who are more likely to adopt multiple products, including credit cards, deposits, and loans.
The bank’s credit card business has historically focused on no-fee, cash-back cards, in contrast to rivals such as JPMorgan Chase and American Express, which have spent heavily on premium rewards and co-branded cards. Bank of America is now seeking to make its existing products more attractive without fully shifting into the premium segment.
The bank is also emphasizing existing co-brand relationships, including partnerships with Alaska Airlines and Royal Caribbean. Executives said the strategy is to extract more value from current partners rather than expand aggressively into new co-brand categories.
AI in Underwriting, Branches, and Operations
Bank of America is applying AI to credit underwriting to evaluate potential borrowers using additional data beyond traditional credit histories. Executives said this allows the bank to approve more customers with limited credit histories while maintaining its risk standards.
AI is also being used in mortgage lending. The bank said it is reworking loan processing and underwriting systems to increase capacity and flexibility, allowing it to handle higher volumes if borrowing costs decline and demand for home loans rises.
In physical branches, Bank of America is rolling out its AI assistant, Erica, to employee desktops. Executives described the tool as an aid for staff, providing faster access to information and helping employees handle a wider range of customer requests.
The bank operates roughly 3,650 financial centers across 39 states and continues to adjust its footprint. It added 50 locations last year, closed nearly the same number, and renovated 150 centers. It plans to open up to 100 additional locations by the end of next year in areas identified as higher growth.
Branch staffing is expected to change as AI and digital tools become more widely used. About 55,000 employees currently work in Bank of America’s financial centers, and executives said that number will decline over time as efficiency improves and customer adoption of digital services increases. No specific targets or timelines were disclosed.
Bank of America has increased spending on technology and data infrastructure over recent years. Executives position the credit card business as a key area where AI can be deployed at scale, with measurable effects on acquisition, risk management, and operating costs.