The head of the Digital Marketing Group, Jen McDonald and the Senior Vice President of Mobile Product Development, Douglas Brown of Bank of America are in serious consideration for the future prospects of the mobile banking strategy of the bank. The mobile app has proven to be a success within the first three years with users exceeding 4 million. However, the major question that they have to address is regarding linking the other services of the bank with mobile app effectively. The major issue they have to address in this regard is to avoid confusion in the customers and how to position this trend in the industry in the long run.
Founded in the year 1904, Bank of America is currently the largest bank in the United States that has emerged on top leveraging multiple acquisitions. The bank has grown significantly in the last century and currently occupy the market in the United Sates and resides there as the market leader. The current market share of the bank is around 82% that allows the bank to cater around 53 million customers. Currently the bank is positioned as the most renowned and number one bank as far as the mobile and online banking services are concerned.
Launched in the year 2007 the bank has attracted more than 4 million users to its mobile banking services. However, the bank suffered a serious drop in its stock price and the revenues declined significantly during the financial crisis. The reason for this outrageous drop is the acquisition that the bank made during the years. On the contrary the bank is the leading financial institution in the country with a great adoption of technology that is helping in its growth (James L. McKenney, 1997).
This portion will analyze the major strengths and weakness of the bank and will also analyze the opportunities and threats present for it. Furthermore, this section will also analyze the financial service industry to examine the five forces that are critical in shaping the strategy.
The first and the major strength of the bank is the brand name which is widely recognized all across the United States as well as globally. The bank has expanded a great deal since its inception band with its wide array of services offered to their customers, established a globally recognized brand name and gained brand equity as well. Adding more to the strengths of the bank is the convenience that it offers to its customers through various channels.
The company offers conventional retail banking services and with the passage of time started offering online and mobile banking as well. Thus the bank provided a variety of options which eventually increased the convenience of the customers. The bank is a constant advocate of product, service innovation that has played a vital role in attracting new customers and also in retaining the new and the current customers. However, another major strength of the company is the increase in customer satisfaction that has inclined rapidly.
With the emergence of mobile and online banking the bank has generated some weaknesses in its account that are of significant importance as well.
The major weaknesses of the bank include the decline in the operational services and the increase in focus on mobile banking. Conventional banking is based on human interaction and with the emergence of mobile banking the operational service has declined significantly that has also brought a serious decline in face to face interaction with the customers. The banking centers and automated teller machines are becoming obsolete and the focus towards these services of is grown down, which is the major weakness of the company.
Furthermore the dependency on the third party suppliers is a major weakness as the company will have to rely on the technology of the suppliers to promote mobile banking and further advancements. Furthermore, the bank is facing hard time tracking customers, which is a difficult task, especially to track users leveraging the mobile and banking services. Lack of focus towards online advertising is also a major weakness for the company.
The company has a major opportunity to widespread its mobile banking and online channel and offer variety of facilities through this channel. This opportunity is of significant value as it will allow the bank to cater a mass market not only in US but also globally as well. Furthermore the company’s advertising and promotion is one of its weaknesses for which the company can use online channels like YouTube to promote its offerings and services.
This opportunity will provide the bank some major advantages like cost benefit as advertising online is convenient and less expensive. Furthermore, the bank can also increase its retail network globally as well by catering Asian markets which are one of the most attractive markets for the banking sector………………………
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