Digital banking

The online lender wants to provide instant payments and securitizations alongside instant loans, according to CEO Anthony Noto.

JPMorgan Chase and Wells Fargo are following Silicon Valley's lead by offering new fee-free accounts. While there are risks involved, the cost of doing nothing would be significant, analysts said.

SigFig was among an early crop of digital advice firms that shifted their focus to serving wealth managers and banks. It has raised more than $100 million from a variety of investors.

Competition for deposits is heating up as summer approaches, and banks are responding in all sorts of ways — from launching digital-only platforms to raising CD rates to reviving debit rewards. But rising interest rates could weaken demand for loans, especially mortgages.

The bank’s AI-driven virtual assistant, which lets people quickly search transactions and cancel subscriptions and other recurring charges, was an instant hit. But BofA will have to take a number of steps to sustain erica's early momentum.