Case analysis for Bank of America
TO: Jen 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”.
I would like to divide strategy into two parts, short term and long term. The short term strategy is to solve the problem that how we define our market, and define population to be targeted with mobile strategy. Retain existing functionality. Enhance current app by adding basic credit card and mortgage features (increase passive customer engagement and minimize complexity). Increased customer engagement and cross-selling to make sure increasing transactions and save money. The long term strategy has three steps to executive. (1 Integrate Credit Card and Mortgage business into current Bank of America Mobile App. (2 Introduce Bank of America e-commerce app which includes local mobile payment and person to person capabilities. (3 Expand to international markets using existing mobile apps to create “virtual banking” regardless of physical branch presence. For local mobile payment, Bank of America should reduce transaction cost to Bank of America and merchants. Merchants reduce costs associated with current point of sale credit card services. Instant access via Bank of America e-commerce to business accounts and transaction history. Eliminating more expensive consumer and merchant transactions could save cost to Bank of America. For person-to-person, it should cut out the middleman which means reduced transactional costs. Secure payment system that is regulated and insured like a bank,
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”.
I would like to divide strategy into two parts, short term and long term. The short term strategy is to solve the problem that how we define our market, and define population to be targeted with mobile strategy. Retain existing functionality. Enhance current app by adding basic credit card and mortgage features (increase passive customer engagement and minimize complexity). Increased customer engagement and cross-selling to make sure increasing transactions and save money. The long term strategy has three steps to executive. (1 Integrate Credit Card and Mortgage business into current Bank of America Mobile App. (2 Introduce Bank of America e-commerce app which includes local mobile payment and person to person capabilities. (3 Expand to international markets using existing mobile apps to create “virtual banking” regardless of physical branch presence. For local mobile payment, Bank of America should reduce transaction cost to Bank of America and merchants. Merchants reduce costs associated with current point of sale credit card services. Instant access via Bank of America e-commerce to business accounts and transaction history. Eliminating more expensive consumer and merchant transactions could save cost to Bank of America. For person-to-person, it should cut out the middleman which means reduced transactional costs. Secure payment system that is regulated and insured like a bank,