¶ … Bank of America:
As part of its digital efforts and strategy, Bank of America introduced its mobile banking strategy in May 2007 to enable its customers to access services through their mobile phones. Through the initiative, the bank's customers can access services via applications on their smartphones, mobile web browser, and short message service (SMS) that was launched few months later. The mobile banking strategy proved to be a huge success since the bank had four million mobile banking customers three years after the launch. The company has continued to receive requests from line-of-business managers to leverage the mobile platform through the development of mobile application functionalities for their respective businesses. However, the financial firm has been hesitant to add complex features to its mobile applications on the basis that it could negatively affect users through slowing down the application.
Strategic Issues and Problems:
Bank of America's mobile banking strategy has been a huge success within three years of its launch as compared to the online banking initiative several years ago because of an adoption rate of approximately eight times. This success is attributed to the increase or growth of the bank's customer base since most of its services are now accessible through various mobile applications. In order to improve the efficiency of its mobile banking systems, Bank of America has continued to implement new mobile capabilities that enable it to widen its reach to additional mobile devices.
The main strategic issue for this financial firm in its banking systems is whether to add complex features to its mobile applications. This has largely been brought by requests by the line-of-business managers who have noticed the success of Bank of America banking system. As the responsible entities for the profitability of their specific businesses, these managers want to leverage the bank's mobile platform through the developing into the mobile application functionalities for their respective businesses.
One of the executives of Bank of America's Mobile Product Development department is hesitant and skeptical regarding such a move arguing that it could make the firm's mobile application complex through addition of more features. According to him, leveraging the mobile platform could not only make the system complex but it can also affect the user experience negatively and slow down the application. The reason for many high-profile failures of mobile applications of various companies in the marketplace is partly attributed to application complexity, which is a huge risk. The other underlying issue in Bank of America's mobile banking system is the uncertainty on whether users are willing and ready to sign up for credit cards or mortgages on their mobile phones. The company needs to be careful in its mobile banking system because its competitors use mobile phone applications as a platform to distinguish themselves.
The vice president of one of the various agencies that were involved in supporting the bank's digital efforts suggested that the bank could develop different applications for various target groups like small businesses customers and Merrill Lynch brokerage. He argued that some financial firms like Wells Fargo and Citi Group have implemented this system in order to provide users with an increasingly customized solution. However, such an initiative is regarded as a costly project because developing applications may require reprioritizing integral bank technology resources from other critical business sectors. Notably, the decision should be made in considerations of its overall impact on growth and the whole financial services industry.
Some of the available options for Bank of America in developing mobile applications include the adopting Citibank's and Chase Group's models. Citibank's mobile banking system enable customers to check their balances, pay bills, and transfer funds as well as to check the balances of the credit cards, pay credit card bills, and track their credit card rewards. In contrast Chase's model provides three services in mobile banking i.e. through the web browser, SMS, and application basic services.
Analysis and Evaluation:
The mobile banking industry and market was launched in America in 2007 as it expanded the features of online banking since its enable customers to access their bank accounts while on the move. Since the inception of this business area, banks have taken mobile banking as a system with which they can distinguish themselves from their rivals and engage their customers. Though it requires new capital investment and cost of operations, mobile banking contributes to higher level of customer engagement that result in increased customer retention and income.
The three major options in the mobile banking industry are mobile Internet, mobile apps, and mobile messaging. While mobile messaging works through SMS's to facilitate checking of account balances and other account...
Bank America Case Study From Goldsmith & Carter textbook, select Bank America (Chapter 2) case study assignment - uploaded Write a (5-7) page paper: 1.Outline talent management program led success company. Bank of America case study The modern day working environment is a highly complex and intricate field, in which employees and employers have to continually meet new demands, standards and challenges. Employees, for instance, have to perform new tasks at superior
Bank of America's Strategic Initiatives: The traditional ways in which banks operate have been broken down by the recent political, socio-economic and technological changes that have occurred around the world. The recent changes have also influenced the economic trends, which have had a significant impact on the banking industry. Banks have largely been involved in product and geographical expansion in foreign and emerging markets because of globalization and deregulation. Notably, this
Bank of America is one of the largest financial services company in the U.S. It is the largest bank by assets, largest commercial bank by deposits and is the second largest by market capitalization in the United States. In the Porter's Five Forces Model, Bank of America's main competitors include JPMorgan Chase, and Wells Fargo. Bank of America does have a lot of key factors working in its favor. The
Bank of America: Life's Better When We're Connected Strategic Audit & Analysis Current Situation Bank of America, as of 2010 was the 5th largest company in the United States by total revenue and the second largest non-oil company in the United States following Wal-Mart. Bank of America was listed by Forbes as the third largest company in the world. In 2008, Bank of American acquired Merrill Lynch making Bank of America the world's
Bank of America Leadership Overview of Corporation Bank of America Corporation, a multinational banking and financial services organization that is the second largest holding company in the entire United States by assets, and the fourth largest bank by capitalization. Headquartered in Charlotte, North Carolina, the banks serves clients in more than 150 countries and has a business relationship with over 99% of U.S. Fortune 500 companies and 83% of the Fortune Global
Bank of America built its success by leveraging different elements of bank deregulation to grow the company into a national bank in the U.S., one of the country's largest. The driving force behind this success was visionary leadership at the top of the company and the ability to integrate a high growth platform with multiple acquisitions at the more functional managerial levels of the company. Thus, the company's leadership development
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now