Case Analysis: Bank of America: Mobile Banking Essays

These advantages led the smaller businesses to concentrate on convenience locations, better customer service, reduction of banking fees, waiving of ATM fees and the ability to cross-sell extra products and services. According to the research, in 2009 the consumers chose their banks based on traditional criteria, such as low account minimums, competitive rates, and convenient locations. (Case, pg. 2)

Most new entrants are technology firms of all sizes that are looking revolutionize the banking industry as they revolutionized almost all major industries in the past 15 years. These firms apply concepts such as artificial intelligence and 24/7 connectivity to create innovative ways of performing tailored banking operations at lower cost and with greater convenience for the consumer. Retail banks however have an opportunity to maintain relevancy over the upcoming decade, but in order to do so they must harness technology either through in house innovation or partnerships to accentuate they’re current competitive advantages such as personalized

In the world of banking and finance nothing stands still. The biggest change of all is in the, scope of the business of banking. Banking in its traditional from is concerned with the acceptance of deposits from the customers, the lending of surplus of deposited money to suitable customers who wish to borrow and transmission of funds. Apart from traditional business, banks now a days provide a wide range of services to satisfy the financial and non financial needs of all types of customers from the smallest account holder to the largest company and in some cases of non customers. The range of services offered differs from bank to bank depending mainly on the type and size of the bank.

At Bank of America we are looking to deliver what the customer wants. We believe that there are five pillars. They are easy to use, clear, and straight forward banking, friendly and knowledgeable associates in the community, reliable products and services, security and accessibility. These tools will help our customers feel in control of their financial decisions. To make sure that this commitment is communicated we will market through mass media, associates, print ads, and radio. We have also switched the way we will target the customers. The customer will fall into three segments. They are Mass Market, Mass Affluent, and Small business. This will assure that we are delivering the

The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.

Bank of America was founded in 1904 by Amadeo Peter Giannini when he opened the bank of Italy in San Francisco, it later developed to what we now know as Bank of America. In1958 Bank of America issued its first bank credit card(Bank AmeriCard). Bank America's most substantial purchases was in 1983 the purchase of Washington State Bank. Bank of America became the first bank to offer Coast to Coast operations in the United States and expanded to New England with the acquisition of Fleet Boston Financial Corporation in 2004, by the early twenty-first Century BOA was operating more than 5,500 Bank branches 20 US states in which they conduct corporate and Investment Banking in numerous countries worldwide. Its merger with MBNA Corporation in 2006

The industry that I have chosen to analyze for this paper in the banking industry. The companies which I have selected to analyze are Bank of America & Southeastern Bank. Bank of America will represent as the example for the company who has acquired and merged with other banks, and Fresno Southeastern Bank will act as the example for the bank who has never merged with a larger bank in any form or has been acquired. Both these banks offer similar products to their customers, for checking and savings accounts to home and car loans. They both offer investment products as well. Bank of America has a lot more products on a larger scale due to the size of their company, and the mergers they have made over their history. They operate worldwide

Bank of America trusts that it has set up the prevalent saving money establishment accessible to serve consumers and business customers in the United States. Bank of America has developed its retail dispersion system throughout the years for the most part through acquisitions, and the bank now has 5,800 branches and 18,000 ATMs for its clients to utilize. After the buy of Merrill Lynch and Countrywide Financial, the bank has 5,300 home loan officers and almost 16,000 budgetary counselors serving 1.5 million customers with $90 billion in resources. Bank of America arrangements to utilize this establishment to serve three diverse groups: customers, organizations and institutional financial specialists. The organization trusts that this client

An obvious threat to the online banking services. Additionally, a cost of living increase is predicted for 2018 of 2.15 percent, this translates into higher costs for basic needs such as groceries, clothes, rent, and power. If consumers have less disposable income they will likely spend less money, for the banks that may threaten the current usage of online banking services. Also, as increases in women entering the workforce continues, the demand for time saving services like online banking will likely continue to increase. This is an opportunity for the banks to reap the financial benefits from this trend. Most recently, privacy breaches such as the recent Facebook controversy may cause technology users to question the security of online banking. The banks make every effort to ensure their online security measures are substantial: however, mobile apps that customers download to their phones can be vulnerable to hacking. If hacking incidents continue to make the news where individuals information has been accessed this could result in a trend away from online services where financial information is vulnerable.

But with acquisitions and mergers it soon grew to a noticeable established bank called Banknorth. The growth of Banknorth did not go unnoticed, in the early 2000s it caught the attention of TD Bank. Then in 2007, it was fully purchased and became incorporated in the framework of the company. With the determination to further grow their company into the United States, TD bank acquired local New Jersey Bank, Commerce Bank. With Commerce Bank, it came with their excellent customer service and Easy going nature that made it such a successful bank. But This in turn caused a rebranding of TD Bank, and soon it was called, TD Bank, America’s Most Convenient Bank, to preserve the customer service that commerce bank provided.

. Mobile services not only offer a new, convenient channel for existing customers of banks, the technology will also provide access to 3 Bnstrong global unbanked population

Aijaz ,Shaikh & Karjaluoto (2014) carried out a literature review on mobile banking adoption. In their research report journal they acknowledged that e-commerce continues to play a significant role in the international business environment. They further stated that technologies and applications now focus more on mobile commerce, mobile computing among others. Consequently, mobile banking has been considered an instrumental channel of distribution and therefore research focus on its adoption. By the year 2017 there is a prediction that over 1 Billion people will be using mobile banking globally which is a representation of 15% of the overall number of mobile users. Statistics also indicate that around half of the overall number of mobile subscribers is unbanked. This therefore indicates growth opportunities for the banks and a current slow trend in adoption of the mobile banking application.

Century National Bank has offices in several cities in the Midwest and the southeastern part of the United States. Mr. Dan Selig, president and CEO, would like to know the characteristics of his checking account customer. To better understand the customers, Mr. Selig asked Ms. Wendy Lamberg, director of planning, to select a sample of customers and prepare a report. To begin, she has appointed a team from her staff and the team has selected a random sample of 60 customers. All the information gathered is tabulated in the table below:

In many developing countries it's common for a person to have a mobile phone but not a bank account. In fact, more than 1 billion people fit this description, and the number is only likely to increase. To that end, many companies are considering how to give residents access to banking services via their handsets. The GSM Association predicts that by 2012, nearly 300 million of the previously "unbanked" will be using some form of mobile banking.

Mobile banking is well utilized in countries of Europe and even Japan, yet it is slow to catch up in America. A study by Forrester Research found that only 10% of Americans like the idea of m banking while 35% already bank online