Bank of America: How to Provide Service to the Multitudes
In 2011 Bank of America was one out of 6,453 banks in operation, making the banking industry highly competitive (Mason). Banking services have been around for centuries and just about everyone who needs financial services already has them. Because of this, Bank of America needs to maintain a competitive edge over their rivals, so that they may lure customers away from their adversaries. There are many ways that it can do this; one way is to offer competitive rates and a variety of services. Another way it can differentiate itself is to offer services faster and more efficiently. It can do this by investing in information technologies and information systems. Information systems are vital to the success of a banking entity, especially to Bank of America. Bank of America provides financial services for over twenty eight million households and over two million businesses. They would not be able to manage all of these customers without the use of their database systems. They also offer a variety of services to their customers so that they can be more interactive in their banking experience. Information systems and services like ATM machines, internet banking, and smartphone applications provide valuable services to customers and allow Bank of America to maintain an advantage over its competitors. History
Bank of America’s history stretches all the way back to July 5, 1784 when its earliest predecessor, the Massachusetts Bank, opened for business for the first time (Bank of America). At the time, it was one of only three commercial banks in existence and one of only two banks to receive a state charter. In 1960 after thousands of mergers and acquisitions, the bank was named North Carolina National Bank (NCNB). In 1991, NCNB acquired C&S/Sovran of Atlanta and Norfolk, taking the name NationsBank (Bank of America). In 1998 NationsBank acquired the California based BankAmerica Corporation and a new name, Bank of America. This union began a new era in banking; it allowed customers to access funds outside of their home states and coast to coast (Bank of America). This also marked the corporation’s national debut. In 2004 it acquired FleetBoston Financial Corporation and in 2009 it acquired Merrill Lynch which had international operations. Bank of America now has international presence that can be found from Beijing to London (Bank of America). Because Bank of America has served millions of customers throughout its history, it has “been quick to make use of all available technologies to create value and improve service” (Bank of America). In 1958 it launched a new credit card for consumers; credit cards had been around since the 20s, but limited to businesses or stores. In 1966 it began licensing other banks to use their credit card, becoming the country’s first nationally accepted credit card. In as early as 1949, Bank of America partnered with Stanford Research Institution in the application of computers in banking. They were also early adopters of online banking, having the largest online customer base in the world (Bank of America). Bank of America’s rich history, dating back to early American history and adoption of technological advances has made it the success that it is today. Information Systems
The first system used by the organization and the one of the key components is the NCR Teradata. This system is described as “the warehouse serves as a single repository for information on more than 28 million households and 2 million businesses” (Duvall, 2003). This is the foundation of the information system and links to the other systems to provide information needed to ensure each component works. The primary function of this system is to manage and store the vast amount of raw data needed to effectively run a banking facility of this magnitude. NCR is the actual company that owns the...