Bank Of America Essay

Submitted By sara_alinazari
Words: 874
Pages: 4
Open Document
Discuss the future of the bank’s mobile strategy
Mobile banking was launched in May 2007 access from mobile applications or web browsers on mobile
SMS were planned to go live in a few months
Brown was hesitant for getting mobile app complex/ unclear whether users were ready to sign up for mortgages or credit cards on their mobiles./
Competitors like Citi have added credit card feature to their mobile app.
Building apps for different target groups(Citi and Wells did it), but building apps means reprioritizing critical bank technology resources from others
Transaction
BOA
Citi
Chase
Wells fargo
PNC
Check balances
√
√
√(sms)
√
√
Make transfers
√
√
√
√
√
Wire transfers

√

Pay bills
√
√
√

√
Locate ATMs and branches
√

√

√
Check credit card balances

√

Pay credit card bills

√

Track credit card awards

√

Credit card due dates

√(sms)

Transaction history

√(sms)

√

More than 40 currency rates can be seen

Monitor balances for corporate bank accounts(outgoing payments..)
Virtual Wallet including calendar to view paychecks and money needed to pay bills
Saving engine and overdraft warning Financial Services Industry:
In 2009 bankruptcies10 largest banks held about half of deposits(BOA, JP Morgan, Citigroup, Wells, PNC) Clients reined in their spending and hurt BOA because of the size of retail banking.
Opportunity by focusing on convenience, fees and customers service.-> customers chose their bank based on traditional criteria such as low account min, rates, locations.
BOA
Founded in 1904, By Dc 2009 its market covered 82% of the US, served over 53M clients.
Leadership position in 23/30metropolitan areas
Number one mortgage originator.
In 2008, revenues increased but NI was down by 73%.
In 2009, They got 20$Billion in capital to stabilize the financial markets. Mistake  Fear of linking to Citigroup.
US mobile banking Markets
It a way to differentiate themselves
Projected one of the least costly banking channels cost per transaction: $0.10 in 2009, will drop $0.03-$0.04 $0.13 in interactive voice response(IVR) $0.16 ATM $1.34 branch
Technology:
Mobile banking:
Mobile messaging:
Works through sms
Check balances or set up alert
It works with all wireless operators/ no installation
Text based/ 140 to 160 chars
Mobile Internet:
Effectively connects mobile users to web site
Users need data plan, slow browsers, small screen size
Mobile apps:
Smart phones can search the closets branches
It is more customized
Smartphones’ growth will be from 10 to 46%
Many combinations of devices has costs for developing from 40000-50000 for small and thousands for complicated ones

Market Size:
In 2009 10m is getting 37M in 2014(30% online banking users)
Annual transactions for mobile banking in 2008: 180M to 2.4B in 2014
Increasing user awareness/ better features
60% of not mobile banking users are willing to use
Users should register for online banking to use mobile banking in most cases except for Well
1% prefer mobile / 25% online banking/ 21% branches/ 17% ATM because of security/limited value/ cost of data access
Mobile payments:
In 2009, US market showed rapid growth signs
Local payment
Contactless/ substitute for cards/save time /
NFC/RFID/bluetooth
Mobile commerce
When the merchant is not at the place
Adding costs to their bills/ retain customer transaction value
Us arket for virtual goods 677M$ in 2009 increase to 2B in 2014 / expect of micro-payment to larger purchases

Person to person payment
Send money to others
Like paypal/ it is not regulated as a bank/ in 2007 60B$ transactions by rate of 27% increase/ 9% of global and 15% of Us are done by
Global remittance as an opportunity/ 300B$ flowing money globally
Population of nonbanking population/ 1.5B unbanked and 3B
Show More

Related Documents: Bank Of America Essay

Bank of America Essay

Internation Business Case Study Bank of Amerian and The Chinese Credit Card Market 1. How important is China to Bank of America? Did BOA do the right thing by taking a minority position in CCB? We considered that Bank of America’s taking minority position in CCB (9 percent, as stated from the case) is an adequate decision. Looking at the situation from the perspective of a firm in search for successful overseas expansion, we considered that CCB - one of the largest commercial banks in China - could serve…

Words 2151 - Pages 9

Bank Of America Business Analysis

Bank of America Business Analysis Part III MGT/521 November 7, 2012 Bank of America Business Analysis Part III The purpose of this paper is to finalize my examination of Bank of America’s position within a marketplace in which is should dominate and come to a consensus of whether investing in this company will provide reasonable returns and be an asset to my investment portfolio. I’ve conducted two previous analyses that included a SWOT analysis to examine how Bank of America is positioned…

Words 2315 - Pages 10

Organizational Structure Paper: Bank Of America

Organizational Structure Paper: Bank of America June 9, 2014 MGMT 230 Instructor: Yvette Mack Emerging of Bank of America Bank of America is one of the largest financial institutions around the world. The institution actually began and existed solely to service those that were turned away from other banks; mostly farmers who had come from Italy. Its humble beginnings, a small bank called Bank of Italy that was established by Amadeo Peter Giannini and his son in San Francisco…

Words 936 - Pages 4

Essay on Bank of America Five Force Analysis

Bank of America Five Forces Analysis Threat of new entrance The sector offers a considerable barrier to new entrants due to the high capital required to establish a new bank. As banking is professional services type required high creditability, strong brand presence is the key obstacle for newcomers. However, in line of Global consumer & small business banking especially payment service the entrepreneur or new company could compete in this segments e.g. internet bill payment. Additionally…

Words 885 - Pages 4

Student: Bank of America and Cash Earnings Essay

‘manipulate’ cash earnings Bank’s ‘manipulate’ cash earnings PUBLISHED: 20 Sep 2012 PRINT EDITION: 20 Sep 2012 John Kehoe Banks are under pressure over remuneration policies which allow bankers to boost their pay artificially and potentially fork out unsustainable dividends, investors and analysts argued. Frustrated senior fund managers said on Wednesday they had lobbied bank boards to overhaul the use of “cash” or “underlying” earnings when determining senior banker remuneration. The financial measurement…

Words 1034 - Pages 5

Essay about Swot Analysis for Bank of America

In the SWOT analysis for Bank of America one I performed a SWOT analysis for the Bank of America. I assumed the role of a mutual fund manager work for First Investment Inc Investment Inc. With the information I gathered in part one of my paper I made the decision to invest in Bank of America. In part two of these papers I will further explain why I chose to invest in Bank of America. This paper will address the financial health of Bank of America by reviewing the banks income statement, balance…

Words 1563 - Pages 7

Bank Of America, Goldman And Sachs, And J. P. Morgan

Jamar Averyhart Managerial Finance MWF 11:00 Final Project Analysis over Project With the last project over the three companies Bank of America, Goldman & Sachs, and J.P. Morgan it has made a little weary of doing any investing in banks in the stock markets. They are way too volatile for most people that want a safe return on their investment. These investments look bad because of the economy we are currently in. Because of each company’s beta they rely heavily upon the economy…

Words 603 - Pages 3

Finance: Bank of America and Tom Ryan Ken Essay

CEO Exchange Video Ken Lewis and Tom Ryan Ken Lewis Chief executive officer of Bank of America confirms that the company has a terrific reputation for diversity. Although Ken did not obtain an MBA, he did realize very early in life that he wanted a career where he would not have to struggle and he wanted to enjoy it. Ken was asked the question “have you ever called out sick, just because?” Ken answered he would not if he didn’t have to because he truly enjoys his job of the past 37 years. In the…

Words 383 - Pages 2

Case Analysis: Bank of America: Mobile Banking Essay

Case Analysis: Bank of America: Mobile Banking Company Overview: 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…

Words 1215 - Pages 5

Financial Statement Analysis for Bank of America Merrill Lynch Essay

Objective This objective of this report is to analyse and evaluate the financial data of Merrill Lynch through 2006, 2007 and 2008. It also looks at the developments in the financial markets during these years and its impact on Merrill Lynch, a what-if analysis of the possible financial performance that might have existed had the economic downturn not occurred and in the end summary and conclusions based on the findings. Introduction to Merrill Lynch Merrill Lynch is one of the world’s premier…

Words 4151 - Pages 17