Bank of America: Mobile Banking
April 29, 2014
AMBA 650 section 9040
TABLE OF CONTENTS
I. CASE SUMMARY 3
II. KEY ISSUES 4
III. ANALYSIS AND EVALUATION 4
IV. RECOMMENDATIONS 7
Appendix A: REFERENCES 13
I. CASE SUMMARY
Bank of America (BoA), established their online presence in the early 1990s. The goal was to provide their customers with the convenience of accessing account information, transferring money, and viewing transaction detail. In 2006, BoA noticed that mobile phone users were growing at an exceptional rate and identified a new platform to service their customers, mobile ...view middle of the document...
And in the short-term, what they will decide to do regarding the line of businesses' request for features on the apps.
II. KEY ISSUES
BoA is the number one bank in the United States. They are also the number one in online and mobile banking. In order to maintain this, BoA must decide in the long-term how to position themselves in the fast changing industry. BoA must also decide whether to extend the services available on the mobile app, create additional apps, or refuse the additional features requested by the credit card and mortgage lines of business. Improving and rebuilding relationships with customers became critical after the financial crisis in 2008-2009. BoA was impacted by the financial crisis when their acquired companies, Merrill Lynch and other sub-prime lenders, because reporting losses. A US Federal Government bailout of $20 billion dollars helped to sustain BoA.
III. ANALYSIS AND EVALUATION
First, BoA must identify the strengths and weaknesses of their internal environment. According the Kotler and Keller (2012), this analysis will help to identify areas that affect a company's ability to earn profits. BoA is the leading financial service provider in twenty-three major cities. They are also the number one in online & mobile banking and mortgage services. They strengths lies within building a strong brand, multiple financial service offerings, engaging customers, and customer service. However, their weakness became prevalent when the decision was to made to only offer mobile banking to customers who already had an online banking account. This left an untapped market exposed to competition and BoA risked losing customers and reducing their market share. BoA also ignored a large mobile market of non smart phone users who would use the SMS-technology for mobile banking. This left 85% of potential mobile phone customers available to be snatched by competition, such as JPMorgan Chase - who decided to roll-out their mobile banking with mobile messaging.
Identifying the external opportunities and threats are also important for a company to remain competitive. Kotler and Keller (2012) define marketing opportunity as an area of buyer need an interest that a company determines to be profitable. BoA decision to enter into the mobile banking industry was critical to their long-term success. In the case study, several forecasts were reported to show the future projections of mobile phone users and mobile banking transactions to grow 600% by 2014. Additional opportunities to service their...