| NEW YORK
NEW YORK Nov 29 It may be more than a decade
before banks see substantial benefits from investments they are
now making in new payments technologies, Bank of America Corp
Chief Executive Brian Moynihan said on Tuesday.
The industry has been investing heavily in digital methods
of exchanging money, including a U.S. payments network called
Zelle. But the cost of processing paper checks and carting
around dollars and cents still weighs heavily on big banks, and
it may take 10 to 15 years before that problem goes away,
Moynihan said at a conference organized by The Clearinghouse, a
trade group focused on payments.
"Even though mobile wallets, credit cards and debit cards
all grow, you still have a lot of cash and a lot of other
things, so it will take time for customers to change," he said
in an interview with Reuters following a panel discussion.
Roughly 10 percent of Bank of America's costs come from
moving coins, currency and checks throughout the banking system,
Moynihan said during the panel discussion.
The Charlotte, North Carolina-based bank reported $32.9
billion in operating costs for the first nine months of this
Credit cards worked as a profitable payment system for the
banking industry for a long time. However, a 2010 financial
reform law placed limits on fees banks can charge to process
transactions, making the business less lucrative.
"We had this great system called Visa and Mastercard, which
we built for years," said Moynihan, "but it gets attacked on
(Reporting by Dan Freed; Editing by Lauren Tara LaCapra and