Founded in 1904 as Bank of Italy, and after a name change and merger, it soon became known as Bank of America (BofA). After several acquisitions, the corporation had grown significantly; covering over 82% of U.S. markets, with revenues exceeding $119 billion, and over 250,000 employees.1 As the adoption of mobile and smart phones grew, Bank of America realized the potential of a mobile app and the competitive advantage and value it would bring to its firm and customers. Mobile banking was initially introduced in the U.S. in 2007, after the introduction of smartphones between 2008 and 2014, the market was expected to grow to 37 million users by 2014. Alongside the huge expansion of mobile technology, the financial markets took a plunge in 2008 – 2009, leading to an economic recession. Despite having a strong reputation, Bank of America took a hit from the subprime mortgage crisis, and received $20 billion in capital from the U.S. government. While facing turmoil, Bank of…show more content… Although the high development costs of a fully integrated mobile app were substantial, it was not preventing other big banks with the financial resources to create mobile apps. At the time of the smartphone boom, multiple banks and financial institutions had mobile apps or some form of mobile online banking, as a result there was and still remains a threat of new entrants in the mobile market.
Because BofA was one of the first to develop a mobile app, they were able to differentiate themselves from other banks as a result. Although not being the only bank in the financial market, they had other large competitors such as Citibank, who were able to offer their services in SMS, web browser as well as an app. Many industry competitors also had more than one app for each of their other business domains or markets; resolving the issue of app complexity or