Bank of America announced a significant investment of hundreds of millions of dollars to aggressively expand its credit card business. Mary Hines Droesch, head of consumer and small-business products, stated the funds will bolster co-brand partnerships. The investment also covers digital enhancements, increased marketing, and card refreshes.
The bank plans to unveil updates to its rewards program later in February. The primary goal is increasing credit card penetration among existing checking clients from 71% to a medium-term target of 80%. Additionally, BofA aims for 5% annual loan growth in its $101 billion consumer credit card portfolio. This strategic push underscores the lender's confidence in growing the consumer banking division.