Bank of America
Executive Summary
Bank of America serves a large amount of the U.S. population and provides a wide array of services to meet their customers needs. The organization has faced many problems since it’s collapse in 2008-2009 and is working to rebuild healthy customer relationships through marketing efforts and free mobile banking. While mobile banking provides a convenience for consumers, it can be expensive for the organization. Thus, Bank of America must decide whether or not it would like to advance with technology or keep their progress to a minimum. It would be wise for the organization to keep up with technology and provide services to the consumer that they may be able to find elsewhere. Bank of America must prove that they are a dependable organization and worthy of the consumers business in order to remain a top organization in their industry.
Identification of the strategic issues and problems:
Bank of America has been a top financial organization for some time with services such as retail banking, investment banking, and opportunities for small businesses. With the evolution of the smartphone and consumers constantly on the go the demand for mobile banking has increased excessively. Consumers would like the convenience of checking their balance while being able to transfer funds on quick notice. The underlying issues and problems that Bank of America faces are two fold. First, the organization needs to decide whether to continue advancing with technology to provide mobile banking to their consumers. This means large added costs and dependence on consumer usage. Next, Bank of America must earn the trust of the consumers and then convert them from on-site or online bankers, to mobile bankers with the use of banks app. While many are still recovering from the financial crisis, it may not be financially intelligent for Bank of America to continually advance as technology does, since the development of an app can cost up to hundreds of thousands of dollars (Gupta & Herman, 2012, p. 4). Also, due to the financial and economical collapse in 2008, customers are reluctant to trust the organization again and thus do not participate in mobile banking. Customers are also apprehensive when it comes to entering their secure information through mobile application, constraining the bank even more. Bank of America must concentrate their efforts on market research and use their budget wisely, while building solid relationships with current and potential users.
Analysis and Evaluation
Industry
The banking industry has been able to impressively recover from their collapse in 2008 and reestablish the trust of their customers. Currently Bank of America is in competition with Wells Fargo,