Bank of America: Mobile Banking

Precision Research & Design

Ashlee BlairDaniel Carey

Stephanie FortnaBrandi Stricklin

Main Challenge

WHO: Bank of America (Digital Marketing Group)

WHAT: Increasing overall growth in mobile banking

WHERE: BoA Headquarters; Charlotte, NC

WHEN: January 2010

WHY: Functionality of apps to meet different needs and specific businesses.

HOW: Should there be an increase in functionality of current apps, build new apps or refuse altogether to add complexity to current apps?

Industry Trends What industry does the brand

compete?

• Financial Banking Industry

Identify at least three important trends that affects this industry:

• Economic Downturn• Bank Insolvencies

• Government Regulation Changes• Dodd-Frank Consumer

Protection Act

• Web 2.0• Social media

Industry Rankings

Market Share

• Price• Free

• Product

Mobile Banking• Mobile website • Text banking • Mobile apps

• Place• Convenient access to your bank accounts

anywhere, anytime

Marketing Mix

Promotion

SWOT Analysis

Strengths: • Banking Supermarket• Internationally Known• Great Twitter & YouTube

Presence• Partners of MLB

Weaknesses:• Brand image• Fees • Limited functionality

Opportunities:• Social Networking• Mergers & Acquisitions• Globalization

Threats:• Downturn Economic Cycle• Interest Rates• Consumer Payment• Government Regulation

What’s the brand competitive advantage?

• Strong commitment to diversity• One of the largest U.S. Banks

What’s the brand unique selling proposition?

• Unmatched Convenience• Customer driven company

What attributes and benefits the brand offer to their customers?

• Another channel to differentiate from competitors

• Customer accessibility

Brand Analysis

Business ModelThree Business Segments

• Global Consumer and Small Business Banking

• Global Corporate and Investment Banking

• Global Wealth and Investment Management

Strategy• Serve three groups of customers – individuals, companies

and institutional investors

• Deliver all our capabilities in the U.S. globally• Deliver capabilities on an integrated basis to meet the

needs of customers and clients• Create long-term relationships and a value exchange for

what we provide• Produce consistent long-term shareholder value, serve

customers and clients, and create opportunity for our employees

Revenue

• Previous 5 years

Revenue

• Projected 5 year earning– Bank of America is in a tough position thanks to

the fall of the real estate market– We estimate only a 2% growth rate in total

revenue and that is being very optimistic– With such a growth rate Bank of America can

expect revenues of 74 billion in 2015

Competitive Landscape

Competitor: Wells Fargo

Competitor: J.P. Morgan Chase

Competitor: CitiGroup

DigitalMarketing

Social Media:

Twitter

Facebook

YouTube

Digital MarketingMobile Applications iPhone®, iPad®, Windows® Phone, BlackBerry®, HP®

webOS™, Android™

Search Engine Optimization

Sponsored Searches

Website

eCommerce

Commercial for mobile bankinghttp://www.youtube.com/watch?v=Ea_lKe9HvO4

In-Class Activity

Time to put the thinking caps on!!

1. Examine the next 8 screen shots2. Identify each of the popular phone applications

http://youtu.be/u2mqqCMu-LM

So how did you do?

Suggested Solution

Bank of America has already done a good job of leading the way when it comes to mobile banking. Their competitors, however, are beginning to surpass them in functionality and BoA must improve their app to keep up.

We feel that they should continue to operate the single app but add more flexibility and customization to it. For example, in the settings allow your customers to turn on and off different aspects of the application depending on their specific needs.

A mom using the app can have a very simple home screen with her different account balances displayed and online bill pay functionality, while an investor can use the same app but include a stock market ticker, list of their investments, a virtual wallet, etc. By making the app customizable they can reach all the different needs of their customers while offering adaptability should that customers needs change.

The application should continue to be offered for free, with occasional promotions to continue to improve on their customers adoption of the technology.

Banking Applications