Bank of America Case Study

585 Words3 Pages
Advances in technology like mobile phones have become an essential part of our everyday life and has also vastly changed the financial industry. The use of mobile phones and smart phones aside from the obvious intent as a means of communication, mobile devices have also emerged as powerful gadgets with bundles of applications and features serving multiple purposes. The strategic thinking of retailers to meet the needs of the average consumer as well as to remain competitive, ultimately led the financial institutions in adopting and developing mobile solutions that carter to the customers. Mobile banking deals with the ability of the customers to access their accounts on their cell phones and mobile devices in order to perform a series of banking activates. According to Gupta & Herman (2010) the financial services industry went through stressful period due to the collapse of the U.S. Real-Estate and as well as the subprime mortgage crisis. The net effect was that market values fell, consumers spending dropped and the country was in a deep recession. In 2007 under pressure to remain competitive, Bank of America launched mobile banking services as an extension of online banking services. This paper will examine and analyze the strategic issues and problems faced by Bank of America. It will also analyze and evaluate the benefits of mobile banking and finally offer a set of recommendations in efforts to increase revenue and position the bank to remain competitive. Strategic Issues and Problems Founded in 1904, Bank of America (BoA) within a few years through mergers and acquisitions expanded its business holdings. By 2009 the financial institution was among the leading servicers in the financial industry. Bank of America’s business services include retail banking, which includes deposits, debit, credit cards, mortgage loans and global wealth management.
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