Bank of America is the largest US bank founded in 1904, it has expanded through several acquisitions. By the end of 2009, Bank of America was the market leader serving 82% of the US population and over 53 million customers. They are positioned as number one in online and mobile banking. Their mobile banking services were launched in 2007 and have gained 4 million customers in less than three years. Acquisitions made by Bank of America prior to the financial crisis caused a very strong drop in their stock price.
In 2009, 10 million customers used mobile banking and this is expected to grow to 37 million by 2014. Customers that use mobile banking are not the …show more content…
iii) Transactions will still be done through ATMs, Call centers and IVR, which are 4 to 11 times more costly.
Since Bank of America is one of the largest financial institutions in United States that has millions of customers; online banking is an important feature that offers to ease transactions and provides access to billing statements. However, because of the multitude of services banks offer it is overly-complicated to provide all items in one bundle. Because of this complexity (to add all the banking features in one app for mobile banking) Bank of America should target tablet-users to provide all the banking features with different applications. For example Bank of America can provide tools like market reports for savvy investors or savings programs for households (where it is easier to keep track of expenses.) Tablets are relatively easier to use than mobile phones. Targeting such a market at an early stage can broaden the spectrum in which Bank of America operates its mobile banking. This opportunity which targets future markets as computers are being replaced by tablets should not be forgone.
1) Pros: a)