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 America still jumped on the opportunity and expanded its mobile channel, seeing it as a opportunity to grow competitively, offer more convenience to its customer.
In 2007, BofA launched their mobile banking app, focusing on the convenience and rich user experience it would provide to customers, build brand reputation and retention rates, as well as a potential way to reduce costs. It’s decision to build an app, versus the already established SMS option, offered by competitor JP Morgan Chase, was a way to differentiate itself in the market by offering a unique experience, despite the small smartphone market at the time. Although they saw the opportunity and potential in the mobile marketing, there was still complexities and issues that they...
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...ps for each business stream, customizing the user experience for its intended user. While the initial development cost for each app may be higher, the potential long-term rewards such as reduced costs may be achieved, as well as the additional value to the customer will be realized. An app should be developed for each of its primary business streams (where value can be realized to its customer); global wealth management, middle market lending, large corporate lending, global treasury services, investment banking, etc. Extensive analysis and feedback should first be conducted before developing an app for each stream. Finally, there original or featured mobile application should contain links or shortcuts to each additional app for an intuitive experience. This way, BofA can continue to differentiate themselves, and create a unique, custom experience for its customers.
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