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Bank Of: Mobile Banking

Bank of America is one of the largest banks in the US, founded in 1904. It expanded significantly through acquisitions in the late 1990s and 2000s, coming to serve over 53 million customers across the US by 2009. However, it struggled with losses related to subprime exposures in 2008. It introduced mobile banking in 2007 to differentiate itself and saw increased adoption over time, processing over $10 billion annually by 2009 through its mobile services. It offered various mobile banking options including messaging, internet, and apps to provide customers account access and payments capabilities on their mobile devices.

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kenprakash
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Topics covered

  • Location-based Marketing,
  • Development Costs,
  • Debit Card Holders,
  • Mobile Banking,
  • YouTube Marketing,
  • Mobile Internet,
  • Mobile Payments,
  • LinkedIn Marketing,
  • Facebook Marketing,
  • Annual Money Movement
87 views10 pages

Bank Of: Mobile Banking

Bank of America is one of the largest banks in the US, founded in 1904. It expanded significantly through acquisitions in the late 1990s and 2000s, coming to serve over 53 million customers across the US by 2009. However, it struggled with losses related to subprime exposures in 2008. It introduced mobile banking in 2007 to differentiate itself and saw increased adoption over time, processing over $10 billion annually by 2009 through its mobile services. It offered various mobile banking options including messaging, internet, and apps to provide customers account access and payments capabilities on their mobile devices.

Uploaded by

kenprakash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Topics covered

  • Location-based Marketing,
  • Development Costs,
  • Debit Card Holders,
  • Mobile Banking,
  • YouTube Marketing,
  • Mobile Internet,
  • Mobile Payments,
  • LinkedIn Marketing,
  • Facebook Marketing,
  • Annual Money Movement

Bank of America:

Mobile Banking

Group 06
Overview

Founded in 1904 as Bank of Italy


Merged with National bank in 1998

With Kenneth Lewis as CEO, BofA expanded with several acquisitions

By 2009, business included Retail Banking, Global wealth management


among others

Market covered 82% of U.S. population, serving 53 million customers

Held leadership position in 23 metropolitan areas with number-one


mortgage and servicer in U.S.

2
Turmoil at Bank of America

2008 fourth quarter losses


• Subprime, Exposures, Equities

Tactical mistake of 20bn bailout


• Threats of BofA being nationalized
• Stock traded at its lowest in 20 years

3
U.S. Mobile Banking Market

Introduced in 2007, Banks saw Mobile Banking as a channel to differentiae


themselves

Lead to higher income and increased customer retention

Projected as one of the least costly banking channels

Consisted of three options


Mobile Messaging
Mobile Internet
Mobile Apps

4
Mobile Payments
Refers to payment services operated under financial regulation and performed from or via a mobile device.

MOBILE PAYMENTS
Local Mobile Payments Mobile Commerce P2P Payments

o Uses mobile device equipped o Payment of goods and o Allows an individual to send
with Bluetooth, RFID, infrared services when a merchant is money to another person
or NFC. not located in physical through mobile channel eg-
o Payment can be made proximity. Paypal
contactless to a merchant via o Initially used for ringtones , o Global Remittance market-
his/her mobile phone. vitual goods and games. large opportunity.
o Substitute of debit or credit o Mobile operators add the cost
cards of the goods to the mobile
phone bill and retained 30-
50% of the end-user
transaction value.

5
The Mobile Initiative

• Service was rolled out in May 2007


• Mobile app was launched – better to start small but with a
Initiation
richer customer experience
• First to offer iPhone banking app

• Market adoption increased


• Debit card holders were the most active users
• Almost 99% viewed an account balance and 90% viewed
Results transaction level details
• Over 15 million location searches annually
• Annualized money movement of 10 billion through bill pay
and e-bills fund transfers

6
Technology

Mobile Messaging Mobile Internet Mobile Apps

(+) Works across all wireless operators (+) Connecting through WAP (+) Can locate banks, ATM through GPS
(+) Require no software installation / (+) Banks well-established presence (+) Smartphone Growth 10% to 46%
smartphone (+) no development cost
(-) Development Cost
(-) Only text-based (less user (-) Need data plan Basic : $40,000 - $50,000
experience) (-) Browser speed and Complex: Several thousand dollars
(-) 140-160 characters per message (-)screen size - less richer experience (-) caters to niche customers
7
(-) only basic transaction
Digital Marketing

Mobile • Balance between customer service and promotions


• Location based marketing, interactive campaigns, display ads

Online • Search and display ads


• In game applications, email marketing

• Effective use without over saturating customers with messages


Onsite • Bank’s website and ATM
• Message for brand awareness, or introduction to new services, cross selling

Social Media • Creating a balance against conservative culture


• Presence on Facebook, YouTube, Twitter and LinkedIn

8
Implications

• Launch 2 types of apps Benefits


Consumers Reduction in total transaction cost
Business This will help in targeted mobile
marketing campaign, thus reducing CPC.
• Features the app should include: Increased customer engagement and
cross- selling
Previous App features
Gain access to large mobile E-commerce
E-commerce payment gateway payments market
P2P payments option Remove Middle-men (Paypal), thus
Option to check credit card information increasing own revenues

9
THANK YOU

10

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