top-rated free essay

Pan Boricua

By abhishekhalder Mar 13, 2011 1197 Words
Jen McDonald – Head, Digital Marketing Group, BoA
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?


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:
[2007] 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)

Thru smartphones
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
Customers (mb):
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)
Sample 500
300 interested in mb w/o signup ( at least one service)

Mobile 1%
Online 25%
Branches 21%
ATM 17%
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]

m commerce
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
Expected: m commerce grow to larger bill amounts (would you include that in your bill, how safe is this, anyone could have mobile nos, are there pins?)

P2P payments:
Paypal, send to another person
78mn active accounts in 190 markets, 19 currencies [2009]
Pros: no regulations, but till WHEN? PP allow m connectivity (check, shop, bid, send) 2008 rev 2.4bn [25% inc] TXV 60mn [27% yoy]
9% of global e comm. And 15% US e comm. thru pp
Emergence of new players
Global remittance market (fund transfer nationally and internationally, commission) 300mn flow from devd to devl countr
0% to 1% by 2014. (growth rate of mkt?)
2008 voda-WUMT

Poor population around the word: (no bank accounts)
Customers: access to BFI
Operators: cut, new revenue streams
BFIs: new market 1.5bn unbanked, 3bn underbanked

32mobiles/sec: rapid adoption
Unprecedented experience, ENGAGE, build brand, increase customer satisfaction, retention? (really?) Potential to reduce costs by reducing #call centres?
Start with small and richer customers [2-2.5 yrs] experienced, #1, time to go for all??

Exogenous factor: iPhone launch in 2007 helped adoption.
1yr: 1mn; I banking app in 2008
FQ 2009: 2mn; TQ 2009: 3mn; Jan 2010: 4mn [859 handsets]

a/c bal: 99%
txn lev: 90%
15mn loc searches, $10bn movement (cut?)
35% mkt share
Debit cardholders, low balance check, but how useful was this check? No revenue from this? What amt of txn with debit card? Cut?

X-treme: 24%
Somewhat: 33%
Incr in satis: 76% (due to mb)
Likelihood of referring etc favorable


Lessons from ob:
Cut costs by migrating cust from br to site.
Burden: signing up, entering all payment info
Confusion regarding CONTROL (behavorial change required)
Increase awareness, level of consumer comfort
30mn online users by 2009
Retainer: once details entered, less likely to switch (REALLY?)

Online helped in channel switch (change triggered, need to cash, highest incremental benefit to bank)

Smartphones: 15% of mobile users of BoA
SMS: increase reach and costs (pay operator for each sms)
ADD one more channel, Challenge: Integration with other channels, track txn, security, customer trust

Mobile Marketing:
Balance between customer service and promotion (intimate channel) EXPERIENCE m-mark [2008]
ad: sms (spcl offers, loc based mktg, interactive campaigns, display ads) mobile used as part of INTEGRATED MULTIPLE CHANNEL CAMPAIGNS very effective, much higher click thru rate than email ( 5 to 6 times higher than channel avg) NOVELTY, cust expect msgs

M mark budget doubled in 2010, still <5% of digi mktg

Online marketing
Heavy user, search and disp ad, videos, in game app, email
Top 20 advertisers in ind, top client of google
Past: budget mostly to lead generation and customer acquisition Now: more on graphical display ads for integrated programs
RETAIN TRUST (current mkt situation)

Mobile 10-12
Online 5-15
Video 20-25
Effectiveness (different measures)

Onsite marketing
Educate customers, low variable cost, challenge: effective/optimum channel usage (not more not less)

Social Media
Balance with conservative culture of large bank
Experiments with fb, yt, li, tw
Risk averse culture: is not going here a risk?
Discovery [2009] estd fb and tw platforms
Customer service: limits, grievance handling, closer interaction with associate (attend more customers than at branches) Security and regulations


Cite This Document

Related Documents

  • Peter Pan

    ...well-being? Peter Pan was one of those kids that never truly felt loved and never wanted to grow-up. He is known as “The lost boy”. On December 7, 1941, one of our former Presidents; President Franklin D. Roosevelt said; “A day which will live in infamy”. It was a day that the United States joined the war after Pearl Harbor was attacke...

    Read More
  • Pan Africanism

    ...Pan-Africanism and the Organization of African Unity    Pan Africanism Definition Pan-Africanism is a sociopolitical worldview, and philosophy, as well as a movement, which seeks to unify both native Africans and those of the African Diaspora, as part of a "global African community".             Pan Africanism repr...

    Read More
  • Peter Pan

    ...Peter Pan is no doubt one of the most appealing subjects for "deep" psychological analysis. Interpretations of this character run from the pop-psychology term the "Peter Pan Syndrome" coined by Dr. Dan Kiley (1983) to refer to adult males who refuse to grow up and face their responsibilities, through Kenneth Kidd's (2004) sociocultural study of ...

    Read More
  • Pan-Africanism

    ...Who are the Pan-Africanists? No one can say with authority who was the first person to express ideas synonymous with pan-Africanism, but resistance to foreign domination has been a constant element of African history on and off the continent. It is generally accepted, however, that true pan-African thinking first appeared among Black people in ...

    Read More
  • Pan-Africanism

    ...Pan-Africanism Essay Pan-Africanism was the idea that all Africans should be united in a common cause. Its aim was to liberate Africans from colonialism and racism. It promoted a growing sense in black identity and achievement. The Pan-Africanist movement had two main characters, namely W.E.B Du Bois and Marcus Garvey. Movements of Pan-Afric...

    Read More
  • Pan-Africanism

    ...“self-reflecting” journey, meeting and discussing the current civil rights situation in America with foreign leaders. Carmichael would return to America to resign as the chairman of SNCC and join the radical Black Panthers as its Prime Minister, touring around the country for two years speaking and spreading his literature on black nationali...

    Read More
  • The Character of Peter Pan

    ...Peter Pan will bring you to that world. Peter Pan is a character created by Scottish novelist and playwright J. M. Barrie. It is about a mischievous boy Peter Pan who can fly and never grows up to live with his Lost Boys and fairies in the island of Neverland. And he likes to meet the children from the world outside. One day, he meets Wendy, a b...

    Read More
  • Victorian Period--Peter Pan

    ... Victorian Influences on Literature In 1904 J.M. Barrie published the book Peter Pan. The novel first started as a play, and since then been reproduced into many different version. It published a few short years after Queen Elizabeth passed away and the Victorian Era had come to an end. The characters have specific characteristics th...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.