Douglas Brown – SVP, Mobile Product Development, Starcom
David Carrel – SVP, Strategy and Analysis, Starcom
Kenneth Lewis – CEO, BoA, 2001 – 2010
Brian Moynihan – CEO, BoA, 2010 – present
Mark Hendrix – VP, Digital Marketing, Mobile
Jamie LaRose – VP, Digital Marketing, Email and Mobile
Matt Burgener – SVP, Digital Marketing, Onsite and ATM
Kathryn Condon – SVP, Digital Marketing
Christopher Smith – SVP, Digital Marketing, SEO and Social
Current: Mobile App on Smartphones, Mobile Web
3 months: SMS
4mn customers in 3 yrs. Adoption rate ~ 5-8 times of online banking LoB Managers: specialized apps (responsible for own business profitability.
Add features: Cons - slow down, complexity, affect user experience (already examples of failures) HUGE RISK, are people ready to fix mortgages and credit cards on mobile devices? Trust, human touch (behavior thru habit) DIFFERENTIATOR – Citi has already merged credit info.
Different apps: Citi and Wells Fargo, CUSTOMIZED SOLUTION
Cons: reprioritizing resources, OPPORTUNITY COST?
OVERALL GROWTH OF BOA AND THE ENTIRE FINANCIAL SERVICES INDUSTRY.
FSI: fragmented, thousands of banks, #banks on the decline, oligopolized, 10 top players have 46.4% deposits HHI? BoA #1
Subprime crisis: credit frozen, consumers and banks reduced spending, PAIN to BoA due to size of biz Crisis: Boon or Bain?
Offer freebies to earn customer loyalty?(cross sell) Or go traditional way?
Bank of America: so far acquisitions all the way
82% US markets covered (population), 53mn customers
#1 in 23/30 metro areas, 6000 banking centers, 18000 ATMs
#1 mobile, online, mortgage, GWM: $1.8tn assets, IB: #2 debt and equity raised (2008) 2008 rev up 9% net income down 73%
2009 rev 119bn, NI 6.2bn
2008 250k emp
IMAGE: strong and infallible, tarnished by federal inputs
Lowest stock price
Lewis: lack of transparency
BM: prev head of consumer and small business, would know LoB managers needs and dilemmas.
US Mobile Banking Market:
 extended online, ADD: access on the move.
Differentiate banks, ENGAGE customers -> income + retention? Costs: Initial Capital, OpEx
CPT $0.10 in 2009 -> $0.03-$0.04 when??
Online $0.03 - $0.04, IVR $0.13, CC $0.39, ATM $0.16, Branch Execs: $1.34
m-banking: messaging, internet, apps
check balances, text alerts regarding a\c activity, deposits, transfers Add: across all wireless operators, no software
Cons: limited, 140-160 chars
WAP, effectively connected users to online website
Pros: easiest (already site)
Cons: data plan, slow browser speed, small screens (optimizing display for mobile device) m.boa.com
Pros: richer experience, optimized user interface (ENGAGE), locate bank branches and ATMs (GPS – feel to see location on map, but customers still GO TO THE BRANCHES!) Cons: development costs (combo of devices, OS, networks, 40k to 500k) Smartphones: 10% to 46% of total US m phone market 2008 – 2012.
MS and CA
2009 – 10mn
2014E – 37mn (30% of total expected online bankers – 123.33mn)
Annual TX (mb)
2008 – 180mn to 2014E – 2.4bn
Reason: improve in m devices, networks, better features, incr awareness
2009 survey (online registration)
300 interested in mb w/o signup ( at least one service)
Limited value, security, cost of data access.
Mobile Payments (expanding in US)
Local m payments: Bluetooth (RFID) Infrared, NFC
Pros: Substitute debit/credit cards, save receipt signing, punching pins [2009 – early stages of dev]
no physical proximity, thru sms also, providers putting links of shopping services, use mobile phone no instead of credit card. Costs added to mobile bill.
MSPs retained 30-40% of txn amt.
Emergence of new players, strat agr with MSPs and merchants
US market (virtual goods) 2009 – 677mn to 2014 – 2bn...