1. Alternatives: First, it should build apps for other platforms also not only for iPhones and they should plan to add more functionality to these apps like credit card balance check or payment of credit card bills. It should also allow users to take 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 ...view middle of the document...
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 times and they are not out of the woods yet. However, there is some light at the end of the tunnel, and through the use of today’s technology Bank of America and other major banks are utilizing the highly competitive mobile market through the use of mobile banking. As of 2012 mobile banking is widely accepted as part of the marketing process for large and small banks and even credit unions. However, with the success of mobile banking there were some issues that Bank of America encountered when planning this new form of digital marketing and there are some issues that lay ahead in the future for the company.
Identification of the strategic issues and problems
With all the government imposed laws and guidelines, and with other major banks disappearing, Bank of America has the issue of trying to figure out what the future holds for the company and their growth as well as the issue of deciding on the best use of their mobile banking app for their customers. While other banks decided on using multiple setups for their mobile banking, Bank of America had to decide what was best for the company to keep costs low and what would encourage the customer to use this new form of technology.
Analysis and evaluation
The banking industry was caught in a bad spot due to bad mortgages, so the mobile banking market was a way that banks can gain the loyalty from current customers but also, gain new consumers. This was very important for Bank of America (BoA), since all the other major banks were doing the same thing, BoA had to focus on the mobile market and do something to make their product stand out.
One thing that BoA had to keep in mind is their internal environment or their strengths and weaknesses. Due to BoA being at the industry forefront they had the luxury of being the leader in many of the top cities and having their market cover majority of the U.S. population...