...Case Analysis of Bank of America: Mobile Banking Marcus J. Durr Professor Trittipo AMBA 650 Section 9047 January 31, 2012 Abstract During the tough time for the banking industry when many banks have gone into bankruptcy or have began add numerous fees to their service in order to stay afloat; Bank of American (BoA) has also experienced some of the effects of the financial crisis. In an effort to weather the storm BoA began to incorporate mobile banking. While its competitors were implementing their own mobile banking through mobile apps, mobile web, and short message system (SMS), BoA focused on the mobile app and mobile web only. This case analysis takes a look at some of the major strategic issues and problems, such as BoA leaving out a portion of their target market by opting out of using SMS, which left a portion of their market base outside in the cold. However there are some positives, that BoA realized and took swift action to capitalize on the fast emerging market of mobile banking. In the conclusion, recommendations are given on what BoA can do to keep a stable position in the future, as mobile banking will have a huge impact on the banking industry. Case Analysis of Bank of America: Mobile Banking In the banking industry Bank of America has grown to become a household name and evidence of their marketing efforts through all channels can be seen just about everywhere you go. Over the past few years the banking industry has surly gone through some turbulent...
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...n: Business and Management Case Analysis: Bank of America: Mobile Banking Introduction Bank of America is one of the largest U.S. bank holding companies; it was founded in 1904 and expanded with several acquisitions. Mobile banking was launched in 2007 and within three years Bank of America had 4 million active customers using this service. Mobile banking may be the single biggest innovation the global banking industry has seen. From smart phones to tablets and laptops, banking customers are pushing their institutions to develop more mobile services. This success prompted line-of-business managers to request more functionality in the bank's mobile application that was specific to their businesses such as credit cards and mortgages and to determine how this change would affect their clients. Bank of America offers applications for over 800 devices, which include smart phones and BlackBerry devices. Bank of America was struggling to position their mobile banking service in the continuously changing industry. “The banking industry was fragmented, with thousands of banks offering retail and wholesale banking services.” (Gupta & Herman, 2010, p.2) Recognizing the potential impact mobile technology could have on the entire banking industry, Bank of America must decide on how to position itself within the mobile banking industry. This paper will identify the strategic issues, the benefits of mobile banking to customers and attempt to explain why some consumers...
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...Introduction Bank of America is one of the largest U.S. bank holding companies; it was founded in 1904 and expanded with several acquisitions. Mobile banking was launched in 2007 and within three years Bank of America had 4 million active customers using this service. Mobile banking may be the single biggest innovation the global banking industry has seen. From smart phones to tablets and laptops, banking customers are pushing their institutions to develop more mobile services. This success prompted line-of-business managers to request more functionality in the bank's mobile application that was specific to their businesses such as credit cards and mortgages and to determine how this change would affect their clients. Bank of America offers applications for over 800 devices, which include smart phones and BlackBerry devices. Bank of America was struggling to position their mobile banking service in the continuously changing industry. “The banking industry was fragmented, with thousands of banks offering retail and wholesale banking services.” (Gupta & Herman, 2010, p.2) Recognizing the potential impact mobile technology could have on the entire banking industry, Bank of America must decide on how to position itself within the mobile banking industry. This paper will identify the strategic issues, the benefits of mobile banking to customers and attempt to explain why some consumers have not adopted mobile banking. I will then analyze and evaluate Bank of America’s...
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...International Management II (Core Competencies) Case Study Bank of America (A) by Alexander Beil Christoph Hillgärtner Florian Schlegelmilch Harvard Case Study: Bank of America List of Contents 1. Introduction / Definitions 2. Overview “Bank of America” 3. Product development processes 4. Strength and weaknesses of the systems 5. Learning through experimentation 6. Conclusion / Learnings 7. Summary 8. Questions for group discussion 9. References 1 Harvard Case Study: Bank of America 1. Introduction / Definitions Description of the case study “Bank of America (A)” * The case study describes how Bank of America is creating a system for product and service innovation in its retail banking business. Emphasis is placed on the role of experimentation in some two-dozen real-life "laboratories" that serve as fully operating banking branches and as sites for testing new ideas and concepts. Focuses on: 1) how learning from experimentation can be maximized; 2) incentive and reward systems that motivate employees to experiment in "life" environments; 3) the challenges of managing innovation in an industry that eschews risks, failure, and change. *Reference: http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=603022 Harvard Case Study: Bank of America 1. Introduction / Definitions Process: which activities are to be taken, in which order* Organization:...
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...11/28/12 Case Analysis Bank of America Mobile Banking - College Essays - Yibin2000 Log In | Essays Book Notes Citation Generator More Sign Up Search 850 000 Essays Henkel Business Challenge Create a new product or technology for a sustainable world with Henkel www.henkelchallenge.com/studentgame Savings Account Experience Great Savings with Standard Chartered Savings Account standardchartered.co.in/Savings Equity Market Read Financial News Anytime Online On Economic Times™ Official Site! EconomicTimes.Indiatimes.com Essays » Computers & Internet Case Analysis: Bank of America: Mobile Banking By yibin2000, May 2012 | 5 Pages (1,202 Words) | 677 Views| Report | Sign Up to access full essay This is a Premium essay 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...
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...with their banking, investing, asset management and other financial products and services 1. The company is headquartered in Charlotte, North Carolina. The company has huge presence in America spanning across 40 states. It serves approximately 54 million consumers in US and its foot print covers 80 % of the population. The bank is being led by Brian Moynihan who succeeded Ken Lewis as the President and CEO effective January 1, 2010. Some of the key highlights of Bank of America are: As of 2010, it is the second largest bank holding company behind JP Morgan Chase in United States by assets which stood over US$ 2 trillion As of 2010, the company is the fifth largest company in United States by revenue which is over 111.4 billion2 The company was also the 3rd largest non-oil company in the US after Wal-Mart and General Electric In 2010, Forbes listed Bank of America as the third largest company in the world 3 The bank has over 5500 branches along with approximately 16300 ATMs and an online banking with 30 million active users 4 The major competitors of Bank of America are JP Morgan Chase, Citi Group and Wells Fargo Bank. 1 http://www.forbes.com/companies/bank-of-america/ 2010 Bank of America Annual Report 3 http://www.forbes.com/companies/bank-of-america/ 4 http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol -homeprofile#fbid=W6HlSIbzfcd 2 4 Bank of America: Mobile Banking Case Report Financial Snapshot 5 Company History The company was founded originally as Bank of Italy...
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...benefit of mobile banking service regardless of being online user. Instead of concentrating on binding people to use both mobile and online banking they should concentrate more on customer satisfaction. Mobile banking is a very convenient channel to interact with clients as compared to other channels, as it is fast and can be accessed at any time from any place around the globe. BOA might have an adverse effect on its market share as compared to its peers/ competitors who are dominating the mobile banking market by providing more features/ functionality to the mobile applications. BOA can reduce operational and transaction costs in long run by providing more functionality in its mobile application and promoting its unique features. Moreover the cost of development of the application is very expensive. Second, it should classify its market segments based on Exhibit 3b (Global Consumer and Small Business Banking, Global Corporate and Investment Banking, Global Wealth and Investment Management) then designs a specialized application based on the needs of the target market. The advantage is that it would step ahead of its competitors in providing customized solution for each market listed above. In turn, it will increase customer satisfaction and that would lead to expand its current market in each segment. This will result in increasing mobile banking by integrating BOA’s business line spreading its platform to increase more market coverage.... 2. Case Analysis of Bank of America:...
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...Case Analysis: Bank of America: Mobile Banking Introduction Bank of America is one of the largest U.S. bank holding companies; it was founded in 1904 and expanded with several acquisitions. Mobile banking was launched in 2007 and within three years Bank of America had 4 million active customers using this service. Mobile banking may be the single biggest innovation the global banking industry has seen. From smart phones to tablets and laptops, banking customers are pushing their institutions to develop more mobile services. This success prompted line-of-business managers to request more functionality in the bank's mobile application that was specific to their businesses such as credit cards and mortgages and to determine how this change would affect their clients. Bank of America offers applications for over 800 devices, which include smart phones and BlackBerry devices. Bank of America was struggling to position their mobile banking service in the continuously changing industry. “The banking industry was fragmented, with thousands of banks offering retail and wholesale banking services.” (Gupta & Herman, 2010, p.2) Recognizing the potential impact mobile technology could have on the entire banking industry, Bank of America must decide on how to position itself within the mobile banking industry. This paper will identify the strategic issues, the benefits of mobile banking to customers and attempt to explain why some consumers have not adopted mobile...
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...CASE STUDY: BANK OF AMERICA George Koduah October 30, 2012 CASE STUDY: BANK OF AMERICA Introduction Modern marketing practices have assumed a global perspective such that organizations must continually innovate their product and service offering to stay competitive and profitable. This situation has been exacerbated by increase consumer access to information, consumer quest for individuality, better product/service and better pricing. In the case of Bank of America (BoFA), such issues become very important during the global recession of 2007 and thereafter with its decision to embark on mobile banking. Strategic issues and problems The introduction of mobile banking by Bank of America was necessitated by the global recession which dwindled its retail section as customers increased the use of their money at the bank, with and the banks losses in other areas of the bank’s operations due to miscalculated acquisitions and bad lending practices (Gupta & Herman, 2010, p. 3). Mobile banking was one of management’s strategic approaches to rejuvenate the bank’s financial fortunes, maintain or increase its customer base and remain profitable. Management must make a decision on how to package the mobile banking program to the market considering cost and coverage to differentiate itself among competitors, and benefit from the various profit opportunities offered by mobile banking. The strategic issues facing BofA are the consideration of the extent mobile banking coverage, type...
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...economic condition that faced the nation in 2008-2009, Bank of America (BoA), and other financial institutions within the country, faced the problem of how to differentiate themselves, keep their existing customers, and, at the same time, attract new customers. The leadership of the organization identified mobile banking as a new field within the financial services industry to help provide faster, easier, and more convenient services to its customers. Mobile banking offers an opportunity for BoA to increase its operational efficiency and customer retention. The key challenge facing management is both tactical and strategic in nature. From a tactical perspective, management is faced with the problem of deciding which functionality of mobile application the Mobile Product Development Unit of the organization should firstly implement and which other business unit the organization should focus on. From a strategic viewpoint, management is faced with the problem of positioning itself within the industry. The financial services industry is fast-paced with tight competition. As such there is increased pressure on management to position itself in the long-run in order to be able to compete with other major players within the industry. Analysis and Evaluation The financial services industry serves as a vital component of the United States economy. The industry caters to commercial, private, and governmental needs. Historically, Bank of America has always differentiated itself as an industry...
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...Bank of America Case Analysis Bank of America has always sought to be the leader in perceiving the technological changes of the market and react to it in the fastest way possible. Though it has developed a mobile application for its customers to utilize for their daily banking transactions, it is faced with the challenge of integrating the demands of its LOBs to enhance the existing application to put in the functionalities pertaining to their business. The Bank of America executives have to make a decision as to what would be more feasible for them to do in this situation-make a new application for their LOBs, integrate the functionalities in the existing application or not to make any changes to the existing framework and let it function as it is. The Bank of America mobile application has helped the bank increase its retention rates and the overall customer satisfaction. While the mobile application is currently being used by its customers for basic account level transactions, it still has a lot of room to expand in the domains of Credit Cards and mortgage payments. The LOBs demands of cashing in on this technology seems to be legitimate and something that can be achieved at a lesser cost. But the customer’s apprehension to put their trust in the usage of this channel is something to be looked at before the bank starts utilizing its resources in developing or integrating the applications with the appropriate functionalities. Bank of America has a well-developed and mapped...
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...organize valuable ideas and findings, to identify other research that may be in progress, to generate research ideas, to develop a critical perspective. The literature review has been developed to discuss the fundamental concepts and key authors associated with the subject matter. It includes “mobile banking” and “opportunities and challenges of mobile baking” as these are directly representative of the academic discussion on the subject of investigation. As a literature review needs to be sufficiently critical in a balanced way, the literature review for this study aims to do in the discussion of the opportunities and challenges of the subject matter through impartial assessment of the relevant concepts. 1.1. Opportunity & Challenges of Mobile Banking: 1.1.1. Mobile Banking: Today is the era of fast forward life style. Everything we need or want, we want it in a minimum time. Like all other things we also need a fast forward banking. The result of it is mobile banking. Mobile banking means the ability of making deposits, withdrawal and to send and receive funds from a mobile account. According to the Journal of Information Engineering and Applications (Vol. 1, No.6, 2011), Mobile Banking is a financial transaction conducted by logging on to a bank's website using a cell phone, such as viewing account balances, making transfers between accounts, or paying bills and this can be...
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...TM Beyond branches Innovations in emerging-market banking A report from the Economist Intelligence Unit www.eiu.com Beyond branches Innovations in emerging-market banking Contents Introduction Innovative financiers A successful formula in Peru Going mobile in India The allure of transfers Profits among the poor Banks extending their reach Riverboat lenders in Brazil Small loans prove profitable in Indonesia Attijariwafa looks south in Africa Betting on savings in Colombia Partnerships with retailers A shopping trip to the branch in Latin America Retail channels in Mexico Policy initiatives Take it from their salaries in Brazil Push for Islamic finance in Malaysia 2 5 6 9 12 15 18 19 21 23 25 28 29 31 33 34 37 1 © The Economist Intelligence Unit Limited 2012 Beyond branches Innovations in emerging-market banking Introduction B anks in emerging markets are increasingly weighty in global finance and still enjoy plenty of room to grow in their home markets. But they will do so in innovative ways that set them apart from the lenders of the developed world. The continuing rise of emerging markets will boost the importance of banks in developing countries in the coming decades. These financial firms will not follow the same business models as their developed-country counterparts, however. Instead, they will rely much less on the branded branch, the traditional outlet for banking services. New technologies, innovative low-cost business models and supportive...
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...World retail Banking report 2012 Contents 3 4 7 Preface Key Findings Chapter 1: 8 12 21 Unlocking Pathways to Greater Customer Loyalty Customers Express Conflicting Sentiments toward Banks The Need for a Customer Experience Index The Growth of Mobile Banking 25 Chapter 2: At a Crossroads, Retail Banks Must Identify and Prioritize Core Strengths The Ground Beneath Banks Is Shifting Traditional Tactics Are Less Effective in the Current Environment The Way Forward: Extreme Measures for Extreme Times 26 28 32 40 41 Methodology About Us Preface Capgemini and Efma are pleased to present the 2012 World Retail Banking Report. Retail banks around the world are struggling to maintain their competitiveness in the face of severe external challenges. Massive debt loads are threatening the global economy, while stringent regulations put in place as a result of the financial crisis of 2008 are staunching traditional revenue streams. Customers, still distrustful of the industry, have become increasingly accepting of nonbank alternatives, and social media is giving them an opportunity to publicly explore them. More than ever, retail banks must strive to create stronger bonds with their customers. The 2012 World Retail Banking Report addresses this imperative by establishing a new framework for identifying and measuring success in retail banking. Specifically, our Customer Experience Index (CEI) offers a mechanism for accurately taking stock of the critical...
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...BANKING STRATEGIES Case Study: Product Innovation at Bank of America By Cindy Murray What financial institutions can learn from inventions and innovations in other industries. owhere is innovation more essential to survival than in the banking industry. In the payments domain, for example, nonbank competitors less constrained by bank regulations and therefore more agile are changing the banking industry’s grip on the public perception of banks as the only trusted brand for holding and moving money. However, innovation is challenging for banks. Many products, like payments, are a commodity. A vast number of products and a complex infrastructure require continual upgrades to keep apace with technology advancements and comply with evolving regulations and security requirements. This article describes how Bank of America fosters a culture of innovation. Pivotal to an innovative culture is the direct engagement of clients in the innovation process. We highlight some of the ways that Bank of America achieves this. But first we’ll look at the role of innovation process in building brand loyalty. N Build Brand Equity Through Progressive Transformation Change can occur by redefining a problem or redefining a solution. According to Robert Sternberg, a leading creativity expert,1 creativity is the ability to redefine a problem. Innovation can be viewed as the ability to redefine a solution. Successful innovation is a process over time—one that typically happens in increments rather...
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