BOA Work in progress
3) What lessons can the bank learn from its online banking operations? What are the costs and benefits of having customers migrate to online banking?
When the Bank of America (BOA) launched it mobile banking platform in May 2007, it enhanced service options to its customers by creating smartphone applications (apps) which allowed customers to access account information and make transactions remotely and on the move without having to visit a BOA branch, ATM or even having to have access to a computer. Douglas Brown who had been responsible for the initial development and launch of the mobile banking platform reported in 2010 that just under three years BOA has observed an adoption rate five to eight times that of their online banking initiative which had occurred several years before (Norris, 2012). This level of success was noted as being very apparent to the line-of business managers who are directly responsible for various profit driven portfolios such as mortgages etc.
As noted by (Norris, 2012) the United States financial services industry is significantly fragmented with BOA being the largest individual market segment holder (total of 46.4% in total being held by the top ten largest banks). After the financial crisis of 2009-2010 consumer confidence in some of the larger banks including BOA was shaky. BOA determined that there were opportunities for customers to be poached away by smart firms that focused on reduced fees and providing enhanced levels of customer service. The events lead to a marketplace where competitors were waiving ATM fees and offered increased access to banking representatives.
Several lessons can be drawn from the BOA online banking operations. BOA implemented its online banking platform in the late 1990s with the intention of providing its customers with significantly increased level of convince and access to banking services. By moving more of the basic client activities to online banking BOA had created an opportunity to
When the Bank of America (BOA) launched it mobile banking platform in May 2007, it enhanced service options to its customers by creating smartphone applications (apps) which allowed customers to access account information and make transactions remotely and on the move without having to visit a BOA branch, ATM or even having to have access to a computer. Douglas Brown who had been responsible for the initial development and launch of the mobile banking platform reported in 2010 that just under three years BOA has observed an adoption rate five to eight times that of their online banking initiative which had occurred several years before (Norris, 2012). This level of success was noted as being very apparent to the line-of business managers who are directly responsible for various profit driven portfolios such as mortgages etc.
As noted by (Norris, 2012) the United States financial services industry is significantly fragmented with BOA being the largest individual market segment holder (total of 46.4% in total being held by the top ten largest banks). After the financial crisis of 2009-2010 consumer confidence in some of the larger banks including BOA was shaky. BOA determined that there were opportunities for customers to be poached away by smart firms that focused on reduced fees and providing enhanced levels of customer service. The events lead to a marketplace where competitors were waiving ATM fees and offered increased access to banking representatives.
Several lessons can be drawn from the BOA online banking operations. BOA implemented its online banking platform in the late 1990s with the intention of providing its customers with significantly increased level of convince and access to banking services. By moving more of the basic client activities to online banking BOA had created an opportunity to