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Bank of America: Mobile Banking

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Bank of America: Mobile Banking

Bank of America has been successful in the US in proving mobile banking though the use of a basic smartphone application (app). The bank’s customers enjoy the convenience of, for example, checking their account balances or locating branches/ATMs using their phones. With the success of their basic banking app, Bank of America is considering expanding the functions of their app to other lines of business such as credit cards or mortgages. The problem is to decide whether to invest in increasing the functionality of the app, as it would mean “reprioritizing critical bank technology resources from other important business areas”.

Bank of America could add additional functionalities to their current smartphone application. As an alternative they could make no changes, focus more on online (website) banking, or even mobile banking through SMS as Chase Bank has done. Bank of America could also create different, new, applications for each of their target groups such as brokerage, mortgage, credit card or small business.

Adding functionality to their current app “could slow down the application and negatively affect the user experience”. Mobile app development is expensive, and can cost from $40,000 to several hundred thousand dollars. Making as much of their customer interaction as possible through mobile banking would reduce costs as it is one of the “least costly banking channels”.
Making no changes to their app could possibly be a lost opportunity to gain more business as mobile banking increases in popularity. However, some customers do not see the value of mobile banking, and they are also concerned about the security of mobile banking, as shown in exhibit 2. Not making any changes to the mobile app would save development costs, important to consider in the context of the financial crisis during the late 2000s.
SMS

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