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1. Case Name:
Bank Of America Mobile
Banking

2. Overview
1.Company profile
2.Brand Analysis
3.Competitor
4.Problem statement
5.Context
6.Customer
7.Available alternatives
8.SWOT Analysis

3. Type Public company
Bank of America is the largest Traded as NYSE: BAC
BMV: BAC
U.S. bank holding company; LSE: BAC
TYO: 8648
Industry Banking, Financial services
It was founded in 1904 and Predecessor(s) Bank America
NationsBank
expanded with several Headquarters Bank of America Corporate
Center
acquisitions. 100 North Tryon Street
Charlotte, North
Carolina, U.S.
By the end of 2009 BoA was the Key people Brian Moynihan
(President & CEO)
leader in the market, serving Charles Holliday
(Chairman)
[2]
82% of the US population (over Revenue US$ 115.074 billion
(2011)
[3]
53 M customers) and positioned
[3]
Net income US$ 1.446 billion (2011)
[3]
Total assets US$ 2.129 trillion (2011)
number one in online and Total equity US$ 230.101 billion
[3]
(2011)
mobile banking. Employees 282,000 (2011)
[4]
Divisions Bank of America Home
Loans,Bank of America
Merrill Lynch
Subsidiaries Merrill Lynch, U.S. Trust
Corporation
Website BankofAmerica.com

4. 4-P Analysis
Price : Free
Product :
Mobile Banking is broken into three segments; Mobile Website, Text Banking, and Mobile
Apps
Mobile website : Pay your bills whenever you want with optional online Bill Pay.
Check your balances on Checking accounts, savings accounts and credit cards
Footnote Transfer funds immediately to any other Bank of America account. Several
other facilities are also available such as ATM locator along with maps
Text banking : SMS , banking to request information about checking, savings and
credit card accounts. Getting the answers you need is simple when it's received
within seconds on your phone.
Mobile apps: Mobile Banking App, designed specifically for iPhone®, iPad®,
Windows® Phone, BlackBerry®, HP® webOS™ and Android™ devices. Wherever you
are, you'll have easy access to your Bank of America accounts with their quick and
convenient Mobile Banking App

5. 4-P Analysis
Place
Convenient access to your bank accounts anywhere, anytime. Mobile banking allows
convenience to consumers so that banking can be done anywhere.
Promotion
There are several distribution capabilities for Bank of America. Let’s look at the main forms
of digital marketing; Mobile, Online, Onsite, and Social Media.
Mobile – Launch in 2008, provides the consumer with a more intimate channel for the
promotion. Customers would eventually sign up to receive text messages (SMS) of
special offers available to them.
Online – YouTube, Twitter, Hulu, Xbox game applications were heavy players in Bank of
America’s online presence. BoA conducts test-control experiments, surveys and
graphical display ads with their top client Google.
Onsite – Bank of America has over 5800 bank branches, 18,000+ ATM’s, along with the
bank’s website to help promote the right message to the banking customers.
Social Media – Although not a strong presence on Facebook, Bank of America’s Twitter
and YouTube provide as great help tools to consumers. Interaction becomes instant
and problems can be made apparent to the bank and answers can come quickly to the
consumer that is on the move.

6. Competitor
The main competitors were: Bank of New York Mellon, JP Morgan
Chase & Co., Wells Fargo & Co., Citigroup, and PNC Financial
Services.
Competitor also used mobile banking to ensure a good service to
their customer; they used SMS, web browser and apps, depending
on the bank and the customer they served.
Citibank and Wells Fargo had different applications for their target
groups, making this a customized service.

7. Problem Statement
Mobile banking was launched in 2007 and in less than 3 years
they have 4 million customers using the service.
Bank of America is struggling to position their mobile banking
service in the continuously changing industry. The bank already
has a mobile application but is evaluating if they should add more
features to this app and how this will affect their clients.
Why: Functionality of apps to meet different needs and specific
businesses. By providing apps to the different target groups such
as: Merrill Lynch brokerage, mortgages, credit cards, consumer
payments, etc…
• Starcom, agency that supports the bank on digital matters.
Collaborator • Other agencies and consulting partners.

8. Context
10 of the largest banks held 46.4% of total deposits, BoA being the largest
one.
The banking industry was fragmented, with thousands of banks offering
retail and wholesale banking services.
The crisis of 2009 led to deep recession and a financial crisis that affected
the retail banking business.
Banks started waving fees and offering additional benefits in order to
capture and retain customers.
Mobile banking was introduced in the US in 2007 which added costs to
each transaction but these were lower than call centers and IVR costs.
Mobile banking had three options: mobile messaging (MSM and no
software installation), mobile Internet (WAP), and mobile apps (more
sophisticated and costly, Smartphone use was estimated to grow to 46% of
user in 2014).

9. Customers
Chose their bank based on low account minimums, competitive
rates and convenient locations.
In 2009 10 million consumers used mobile banking and this was
expected to grow to 37 million by 2014.
Customers willing to use mobile banking are not the same as online
users.
Security issues, low value and cost of data access were the primary
reasons why customers would not use mobile banking.
Debit card holders were the most active users because of the
convenience of checking their account balances at any time.
They are reluctant to try a new
banking service if it represented an extra cost and were also afraid
of losing control of their finances.
Customers switch their usual bank channels and the retention is
higher for online services.

10. Available alternatives
1. By increase the functionality. increasing the functionality could come with risks of losing
high-profiles in the marketplace because of a slowdown in the app. The complexity of the
app could deter the user away to a more simplistic app from one of the competitors.
Advantages
 No extra costs on building a new application
 Customers want customization in the products; this will increase retention and
satisfaction.
 Customers that don´t like technology or doubt about security issues won't be affected.
 Other banks offer better mobile apps and this will increase their competitive advantage.
Disadvantages
 This would be a very unwise decision because the technology they use is already dated
and will be irrelevant in the coming years
 Cost of application creation will increase due to the different areas and type of customers
at BoA
 Customer satisfaction will suffer if the app is not updated and does not fulfill their needs.
 Transactions will still be done through ATMs, Call centers and IVR, which are 4 to 11 times
more costly.

11. Available alternatives
2. BY building new apps.
• Building new apps would mean the opportunity cost is much higher if they were to take
necessary resources away from other important business segments. At the same time
this could add to the customization that customers are looking for from their financial
institution.
Advantage
 They could start from scratch and develop a brand new app to pair with their current
app that focuses more on the business mans needs.
 This could be a very good option as there is certainly a market for a more professional
business banking app where one could check their balance and their stocks all in one
place.
Disadvantage
 building a brand new application needs requires huge investment.
 Degree of success of new application requires great marketing effort and plan. Also it
requires understanding the need of the customer.

12. SWOT Analysis
S W O T
TRENGTHS EAKNESSES PPORTUNITIES HREATS
• Huge Customer Base • Weak wholesale banking
• Diversified range of operations • Expansion in • Subprime
banking and non-banking • Not as nimble as smaller, international markets exposure.
financial services & regional operators • Further consolidation • Consolidation in
products • The company has lost the in the banking industry financial service
• Innovations in products ability to compete head- • Merrill Lynch industry.
and services give it a to-head in an environment acquisition • Increased
major strength in where it lacks a size • Countrywide Home regulatory
attracting customers advantage Loans acquisition pressure on
• Convenience (online interchange
banking, mobile banking, rates.
large retail branch • Volatibility in
availability) financial markets
• Brand recognition
• Strong internet banking
presence

13. http://www.youtube.com/watch?v=2z5--CcSDOQ
http://www.youtube.com/watch?v=Bu0rtQGhMN0
http://www.youtube.com/watch?v=I8DDVqZQuvY
http://tumkuruniversity.in/blog/?p=186
http://www.youtube.com/watch?v=7NmxWVyLsjY
http://www.youtube.com/watch?v=GnIkNV6Tczs
http://www.youtube.com/watch?v=7S5JQQSxAmg
http://www.youtube.com/watch?v=E69ml4OaPKs

14. Thank You