Bank of America Mobile Banking

2473 Words Nov 3rd, 2012 10 Pages
Mobile Banking

On a cold morning in January 2010, Jen McDonald, head of Bank of America Corporation's (B of A) Digital
Marketing group, walked briskly to the conference room to discuss the future of the bank's mobile strategy with
Douglas Brown, senior vice president, Mobile Product Development, and David Carrel, senior vice president,
Strategy and Analysis at Starcom, the company which the bank worked with for internet.
Bof A launched mobile banking in May 2007, which allowed customers to access the bank through a mobile application (or app) on their smartphones, and through mobile web on their phone's browser. Brown, who was responsible for the development and launch of mobile banking, reported on the current status, "In less
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Mobile messaging worked through SMS (short message system) and allowed customers to use their cell phones to check account balances or set up text message alerts regarding account activity, deposits, or transfers. SMS had the advantage of working across all wireless operators and required no software installation. However, it was text-based and limited to 140-160 characters per message. JP Morgan Chase started its mobile banking activity with this technology since it allowed wider reach.
Mobile Internet connected users to a bank's web site through the mobile phone browser. Since almost all banks had a well established online presence, this was the easiest option for banks.
Slow browser speed on many mobile phones coupled with small phone screens made this option less appealing to some users.
The emergence of smartphones, such as iPhone, Android, and BlackBerry, allowed banks to provide a richer experience to users through apps. By optimizing the user interface specifically for these devices, apps had the potential to engage users. Smartphones were expected to grow in use from 10% in 2008 to 46% of the total U.S. mobile phone market by 2012. App development costs could range from $40,000 to several hundred thousand dollars. Research from Global Industry Analysts shows that mobile and internet banking are becoming increasingly intertwined. This is largely due to the success of
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