Case Study of Bank of America-Mobile Banking

Case Study of Bank of America-Mobile Banking

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R E V:   N O VE M B E R   12,   2010



S U NI L   G U P T A
K E RRY   HERM A N

Bank of America: Mobile Banking


  On a cold morning in January 2010, Jen McDonald, head of the Bank of America Corporation’s (BoA) Digital Marketing group, walked briskly to the conference room to discuss the future of the bank’s mobile strategy with Douglas Brown, senior vice president, Mobile Product Development, and David Carrel, senior vice president, Strategy and Analysis at Starcom, one of several agencies the bank worked with to support its digital efforts.

  BoA launched mobile banking in May 2007. Customers could access the bank through a mobile application (or app) on their smartphones, and through mobile web on their phone’s browser. Short message system, or SMS, capabilities, which would broaden the bank’s reach to many more devices, were planned to go live in a few months. Brown, who was responsible for the development and launch of mobile banking, reported on the current status, “In less than three years we have four million mobile banking customers. That’s an adoption rate almost five to eight times that of our online banking   several   years   ago.”   McDonald was pleased, “Our mobile success has   not   gone unnoticed by the line-of-business managers, who are ultimately responsible for the profitability of their respective businesses such as mortgages or credit cards. We are constantly getting requests from them that they want to leverage the mobile platform by building into the mobile app functionalities for their specific businesses.”

  Brown was hesitant to make the bank’s mobile app complex by adding more features. The added complexity could slow down the app and negatively affect user experience. He explained, “App complexity has led to some high-profile failures in the marketplace. This carries a huge risk.” It was also unclear if users were ready to sign up for mortgages or credit cards on their mobile phones.
Carrel...

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