BofA Mobile Banking case Essay

Introduction bevel of America (BofA) is the amplest till memory comp either in the United States, by assets, and the second largest blaspheme by market capitalization. As a global Finance Service Institution, BofA serves clients in more(prenominal) than 150 countries and has a relationship with 99% of the U.S. The entrusts 2008 acquisition of Merrill Lynch made lingo of America the worlds largest wealth manager and a major player in the enthronisation bounding industry. BofA launched supple banking in May 2007. nimble cambering lets nodes easily and securely devil counterbalance nurture, pay bills with optional Bill Pay answer, transfer money, and engender nearby ATMs and banking centers through and through a planetary application on their smartphones, and through roving web on their phone browser. Douglas, SVP of meandering(a) Product maturement was quoted, In less than 3 years we have four one thousand million liquid banking customers. Thats an adoption ra te al almost five to viii times that of our online banking several years ago. Line-of- line of merchandise managers ar looking for leveraged brisk platforms with conkalities that advise meet opposite needs and the different target groups such as Merrill Lynch brokerage, mortgages, credit cards, consumer payments, etcThe capabilities of wandering banking through the use of smartphones or mobile web have become popular with todays bank customers. There ar increasing overall growth in mobile banking in the financial attends industry. In addition, the movement apostrophize1 of mobile banking and network banking is much lower than the traditionalistic channel (e.g. Branch, crab Center, ATMS and IVR). Due to the stinting downturn, banks atomic number 18 looking for extend the dish up channels and aim to annex the profit via tradition core banking answer, such as transaction fees.The carcass automation rout out reduce the operation cost join on the transaction turnarou nd time and accuracy. With the popularity of smartphones and mobile data returns, mobile banking croupe be the booming tools for banking industry profit engine. However, investing in the enhancement of the mobile banking is costly and will presently affecting the banks revenue enhancement and brand images. The worse scenarios, may encounter customer complain and restrictive comments and punishments. Therefore, the management of BofA have to decide how merchantman they effectively enforce this technology as a new media to make banking services easier, faster and more convenient for customer, at the same time, how can the app can helper for BofA market the banks new products, service and increase the customer loyalty. In the laconic run, what do BofA tell the line-of-business managers should the app increase functionality, build new app or refuses to add complexity to the current app? In the recollective run, how do BofA position the bank in this fast changing industry?A nalysis Mobile banking (app) is not a mandatory product (or say channel) for banks customer. Its salutary an optional channel, based on the product itself, lets abbreviation base on Porters 5 forces analysis. 1. New entrants ar HIGH. There will not be any new large mass-market players or niche players bursting on the scene, but there will be new independent players like PayPal that will provide some interchangeable functions app in the market. 2. Power of suppliers are from MEDIUM to LOW. The majority of the suppliers of mobile banking should be those technologies partners, technology consultants, outsource packet house and merchandise partners as fusion in some promotion campaigns.Bank has stronger power than those outsource software house in most situations. 3. Bargaining power of buyers is HIGH. prone the mobile banking is only an optional channel for customer. Customers solace have other options to free their transaction thru the bank and able to say NO to mobile ban king. The slip cost of changing the channel is low but the switching cost of BANK may from LOW to MEDIUM. 4. Threat of substitution is HIGH. Currently customers still can utilize other channels to fulfill their needs via Branches, Call Center, ATMS, Internet banking and IVR. 5. Intensity of rivalry is HIGH. Many banks like Well Fargo, Citibank, JP Morgan are working on the mobile banking and each of these app have the same majority functions and include some differentiate functions.BofA Mobile Banking App functionalities To install the app and apply the mobile banking is free. As the mobile banking include 3 major segments of core function Mobile Website, Text Banking and Mobile App2 . The BofAs new app include at a lower place functionsCheck account balances for accounts and facilities lines held with BofA. Pay bills. Transfer funds between BofA accounts. visible horizon transaction details for all BofA accounts or facilities lines, including posted, pending and scheduled transa ctions. BofA Mobile Banking App include the majority functions that customer requires and lets talk round the Brand of BofA in the following section. The Brand of BofA & CompetitorsBank of America ($30.6B) is the most valuable banking brand in the USA. Its brand value has increased by 18% and it has a brand rating of AAA-. Despite concerns of further mortgage-related write-downs, Bank of America was too the 1 most valuable banking brand in the world at 2011. The DesignsThe Bank and the Mobile Banking App LogoGiven the word-painting of BofA can be shown in the Bank and the mobile banking logo, it can help the customers to connect the mobile banking app to BofA. The show use of the Bank is Red and naughty and the Mobile banking is single using Red only. Red color is a powerful color, symbolizing energy, passion or even danger. It works crush for action-oriented products or brands, products associated with speed or power, or dominant or iconic brands. The mobile banking icon didn t use the Red and Blue color which only using Red to show the passion and commitment of the bank to customer via mobile banking. Bank of America and Mobile Banking SlogansBank Bank of America. Higher Standards Embracing ingenuity Think what we can do for you Mobile Banking Life is mobile, so is your bank The Slogan of Mobile Banking can directly identify the availability and accessibility of the apps that can provide the mobility banking services everywhere. However, it cant strongly connect to the Banks core Slogans.Recommendations Given the increment of additional functions will slow down the performance of the mobile banking app it does not recommend incorporating the additional business functions to the current app. From technologies risk and regulatory prospective, it will be too risky if pulling all business applications in one single platform. If on module down, it will in all affect the bank normal day to day operations. In short run, suggest developing new apps for extendi ng the advance mortgages, credit cards service or investments service for different business functions.To leverage different stigmatisation to differentiate the different category of services that offered. Apart from leverage different brands3 own by the group, BofA can also cooperate with Smartphone and telecom operate Providers to ingredient branding to provide the end to end mobile service. Bank customer can encounter discount on purchase modish smartphones, discount on data service plan and possible to issue mobile credit cards by offering promotions. BofA can witness consolidating all apps in one single platform when there are needs in future. In long run, BofA can cooperate with the Telecom Services Providers and sizeable Merchants, to provide addition information for customer when customer arriving the merchants and let them know what kinds of promotions or discounts are offer.This can uplift the service from singling banking service to mobile living yellow pages. This ca n help to increase the customer loyalty and build strong connections with bank customers. It can also attract more alliance (other merchants) to share the promotion and marketing cost to developing a new banking and living experience. Of cause, it is necessary to maintain the balance of utilizing the mobile banking app, customers segments for marketing promotion events, if over sell which may nurse opposite result.To differentiate BofA from other competitors, it is necessary to ensure the Bank can position the Bank with Stronger Branding and Images extend the services from Banking only to metamorphose the service to other related informational services in daily bread and butter and provide incredible services and experience for customers. This can help the bank to reposition the bank as a full around bank which can fulfill customer day to day activities that require of any payment or transactions.This can help to identify stronger alliance for the long term development. In conclu sion, BofA must keep on investing in mobile banking apps, as it is a trend that smartphone or more progressive device (e.g. Google device) will become more popular, bank must utilize these new technologies by re-design the current channels to increase the bank traditional income (e.g. Transaction fees) and other new incomes (e.g. investments service, financial consultation service, etc.) and extend the service with alliance to promoting the daily service tools. This can help the bank to puff out the customer groups, define new customer groups segments or sub-segments for better marketing and promotion campaigns and maintain the brand in the leading positions. portray 1 Costs per Transaction by different channelsThe Pricing, when the apps developed to more advance, and able to customize and fully integrate full around service for customer, at that time, BofA can consider of charging customer for service charges after trial. If customers are satisfying with the full around services after the trial, the bank can also extend the income by promotion the comprehensive mobile banking and service apps. Exhibit 2Mobile website Customers can pay bills whenever they want with optional online Bill Pay. Check balances on checking accounts, savings accounts and credit cards. Transfer funds immediately to any other Bank of America account. Locate banking centers or ATMs, along with maps and directions. Text bankingUse text message banking to request information about self-own checking, savings and credit card accounts. Getting the answers you need is wide-eyed when its received within seconds on your phone. Mobile appMobile Banking App, intentional specifically for iPhone, iPad, Windows Phone, BlackBerry, HP webOS and Android devices. Wherever you are, youll have flabby access to your Bank of America accounts with their quick and convenient Mobile Banking App Exhibit 3 BofAs branding