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Bank of America Case

In: Business and Management

Submitted By ozblade
Words 1286
Pages 6
Problem Statement
Bank of America is struggling to position their mobile banking service in the continuously changing industry. The bank already has a mobile application but is evaluating if they should add more features to this app and how this will affect their clients.
Situation Analysis
Company
• Bank of America is the largest U.S. bank holding company; it was founded in 1904 and expanded with several acquisitions.
• By the end of 2009 BoA was the leader in the market, serving 82% of the US population (over 53 M customers) and positioned number one in online and mobile banking.
• Very strong and best-managed banks before the crisis which brought losses and a very strong drop in stock price.
• Mobile banking was launched in 2007 and in less than 3 years they have 4 million customers using the service.
Customers
• Chose their bank based on low account minimums, competitive rates and convenient locations.
• In 2009 10 million consumers used mobile banking and this was expected to grow to 37 million by 2014.
• Customers willing to use mobile banking are not the same as online users.
• Security issues, low value and cost of data access were the primary reasons why customers would not use mobile banking.
• Debit card holders were the most active users because of the convenience of checking their account balances at any time.
• They are reluctant to try a new banking service if it represented an extra cost and were also afraid of losing control of their finances.
• Customers switch their usual bank channels and the retention is higher for online services.
Competition
• The main competitors were: Bank of New York Mellon, JP Morgan Chase & Co., Wells Fargo & Co., Citigroup, and PNC Financial Services.
• Competition also used mobile banking to ensure a good service to their customer; they used SMS, web browser and apps, depending on the bank…...

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