Case Analysis: Bank of America: Mobile Banking Essays

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

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.

Who is to blame for Romeo and Juliet's death? People say their love surpasses all boundaries. If that is true, what or who led to Romeo and Juliet's downfall? Was it that they were enemies sworn to hate each other for life, or was it that Juliet was supposed to marry someone else? Well, I say Paris is to blame for Romeo and Juliet's deaths because he pursued Juliet while she was in love with Romeo.

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

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.

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

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:

According to an article published in Forbes Magazine, Bank of America's strategy is to find better ways to serve banking customers through automation and get all of its customers to use all of its products. CEO Brian Moynihan said in a presentation to investors when the company gets its customers crossing over from investment services to banking to borrowing, it gets seven times the revenue. The bank's research shows Merrill Lynch customers have more than $500 billion of deposits in other banks and $400 billion worth of mortgages with competitors. Bank of America was among the hardest hit during the credit crisis. It received $45 billion in bailout funds from the federal government, including $20 billion for Merrill Lynch. The company faced waves of loan defaults as more customers fell behind and investments soured. Banking customers will see some changes as the bank adjusts to new regulations that have cut into fees. The bank has reduced branch numbers and cut jobs, which will continue as more automated and less expensive ways of serving customers are implemented. Automated transactions are growing at a rate of 8 to 9 percent a year while teller-based transactions are down 5 percent year after year. Additional growth opportunities come from international expansions. Bank of America hired 800 people abroad as it worked to boost investment banking services in other countries.

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.

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

Bank of America is a worldwide banking and financial institution that serves over 35 countries, most commonly located on the Anglo and Latin America clusters. Bank of America has close to 5000 banking location alone in the U.S. and locations in 7 countries of Latin America. “The bank's core services include consumer and small business banking, corporate banking, credit cards, mortgage lending, and asset management. Its online banking operation counts some 33 million active users and 20 million-plus mobile users” (Bank, 2017). The first Bank of America location within the U.S. was in 1904 in San Francisco, California and opened its first Latin America location in Mexico City in 1951. These two clusters have a very diverse culture and factors that affect the banking business in each location. In the U.S. the middle class makes up a majority of the population, while in Latin America most consumers fall below the poverty line, which is a huge factor in the banking business. According to Restuccia’s thoughts in the Latin America development problem (2013), “economic performance in Latin America has often been viewed as the outcome of macroeconomic adjustment, as many economies in the region have suffered numerous economic crises” (p 70). However, Bank of America strives to promote economic growth, helping their employees succeed and create jobs, as well as become mobile and accommodating at every location worldwide.

. 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

This matters for two reasons. We believe that adoption will happen in the same way consumers have embraced smartphones, mostly since the iPhone was launched. Consumers will eventually turn to their smartphones and tablets to conduct much of their banking activity. And banks that help consumers to do more of this, faster, will reap an advantage in sales, cost savings and revenue.

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

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.