Case Analysis: Bank of America: Mobile Banking

Good Essays
Topics: Bank
Case Analysis: Bank of America: Mobile Banking

Company Overview:
Bank of America is the largest US bank founded in 1904, it has expanded through several acquisitions. By the end of 2009, Bank of America was the market leader serving 82% of the US population and over 53 million customers. They are positioned as number one in online and mobile banking. Their mobile banking services were launched in 2007 and have gained 4 million customers in less than three years. Acquisitions made by Bank of America prior to the financial crisis caused a very strong drop in their stock price.
Customers:
In 2009, 10 million customers used mobile banking and this is expected to grow to 37 million by 2014. Customers that use mobile banking are not the same as online customers. Customers that use mobile banking represent a different segment of the market that other banking customers. Security issues, a perceived low value and expense, were the primary reasons that customers did not switch to mobile banking. Potential customers were reluctant to try a new banking service that are represented an extra cost and they were also afraid of losing control of their finances. Debit cardholders were the most active users. It was convenient for them because they could check their account at any time. Customers that used this service changed their usual banking channels and as a result -the bank had a higher retention for these users of online services.

Competition/Competitors:
Bank of America's main competitors were: Bank of New York Mellon, JP Morgan Chase & Co., Wells Fargo & Co., Citigroup, and PNC Financial Services. These competitors also used mobile banking to ensure good service for their customers. They used SMS, customized web browsers and apps, depending on the bank and the customers they served.Citibank and Wells Fargo had different applications customized for their target groups.

General Context Considering that the banking industry is fragmented, with thousands of banks

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Mobile Banking Case Studies October, 2010 Copyright © 2010 All Rights Reserved.. Understanding the economics of mobile banking through a series of case studies Background, purpose, methodology Ten case studies of implementations of mobile banking were researched, with a particular focus – where possible – on the economics of these implementations, enabling a better understanding of the potential for gain, the business case, and the attributes of successful implementations. The…

    • 10122 Words
    • 41 Pages
    Satisfactory Essays
  • Powerful Essays

    Mobile Banking On a cold morning in January 2010, Jen McDonald, head of Bank of America Corporation's (B of A) Digital Marketing group, walked briskly to the conference room to discuss the future of the bank's mobile strategy with Douglas Brown, senior vice president, Mobile Product Development, and David Carrel, senior vice president, Strategy and Analysis at Starcom, the company which the bank worked with for internet. Bof A launched mobile banking in May 2007, which allowed customers to…

    • 2472 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Bank of America – Case Analysis Prepared By Kesha S Mitchell April 30, 2013 AMBA 650-1134 Marketing Management and Innovation Professor Philemon Oyewole In 2007, Bank of America (BofA) Corporation launched the largest secure mobile banking service in the United States and has over four million mobile banking customers. BofA mobile banking service gives the customers access to their checking accounts for balance, transfers funds and to pay bills through a mobile application (app)…

    • 1693 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Problem statement The main problem in this case is that whether bank of America add the complicate app and add more new features or not. If they add the new complexity application, it could cost lot of money, and it could also give their users some negative effect. Like the case described “it is unclear if users were ready to sign up for mortgages or credit cards on their mobile phones.” BofA concerns about how the mobile banking affect their customers. Because behavioral factor is very important…

    • 392 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Mobile Banking

    • 2228 Words
    • 9 Pages

    Report On Mobile Banking Introduction The last time that technology had a major impact in helping banks service their customers was with the introduction of the Internet banking. Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation…

    • 2228 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    McDonald FROM: Shawn He RE: Bank of America: Mobile Banking DATE: November 18th Expand app to include other product lines Expand current app to include basic credit card and mortgage functions to increase market share of expanding mobile transaction market and shift customer activity to cost-effective channels. BOA’s entrance into local mobile payment and person-to-person P2P mobile shopping market (tap a large and growing market that currently lacks the regulation of banks and “added security”.…

    • 486 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    BofA Mobile Banking case

    • 1695 Words
    • 7 Pages

    Introduction Bank of America (BofA) is the largest bank holding company in the United States, by assets, and the second largest bank by market capitalization. As a global Finance Service Institution, BofA serves clients in more than 150 countries and has a relationship with 99% of the U.S. The bank's 2008 acquisition of Merrill Lynch made Bank of America the world's largest wealth manager and a major player in the investment banking industry. BofA launched mobile banking in May 2007. Mobile Banking lets…

    • 1695 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Mobile Banking

    • 9269 Words
    • 38 Pages

    m-banking Mobile banking and economic development: Linking adoption, impact, and use Jonathan Donner, Microsoft Research India Camilo Andres Tellez, London School of Economics and Political Science Reference Information: This is a preprint of an article whose final and definitive form has been published in the Asian Journal of Communication, © 2008 Asian Media and Communication Center; available online at informaworldTM at http://www.informaworld.com/openurl?genre=article&issn=01292986&volume=18&issue=4&spage=318…

    • 9269 Words
    • 38 Pages
    Better Essays
  • Powerful Essays

    Mobile Banking

    • 6875 Words
    • 28 Pages

    RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND MOBILE BANKING ADOPTION IN PAKISTAN Abstract With the emergent of new technology especially mobile technology as given new direction with respect to its corporate usage. Mobile banking is one of new way of banking with the emerging technology adopted by banks around the globe. The purpose of this research is to identify the key factors of mobile technology adoption which influence customer satisfaction in Pakistan. Questionnaires are used to…

    • 6875 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    Core banking Finacle provides comprehensive, integrated solution to the core banking business. It addresses all core banking needs under one roof. Multi entity capabilities to support multiple legal entities, across various geographies, currencies and time zones on a single instance of application. Mobile banking The Finacle mobile banking solution offers a rich, secure, and distinct banking and payment experience to retail and corporate customers. The solution works on a variety of mobile devices…

    • 1498 Words
    • 6 Pages
    Powerful Essays