Bank of America Harvard Case Solution & Analysis

Bank of America Case Solution 

Introduction:

The Bank of America is one of the major financial institutions in the world. It provides various types of financial services as well as it offers innovative products to its customers. In 2007, the BOA introduced mobile services due to the growth in the use of smartphones and changing needs and preferences of customers.

The mobile banking allowed the clients to effectively and safely provide access to the balance information, pay bills with optional Bill Pay benefit, exchange funds, and find adjacent ATMs as well as managing an account through a mobile application on their cell phones, and through mobile web on their phones’browser.

The mobile banking in BOA exceeded expectations by enrolling nearly 4 million customers in 2010.The. bank was facing the challenge of forming the mobile banking into a necessary part of the clients’ experience and in the meantime, it guaranteed that investment in mobile banking was made carefully with optimum returns.

The main key players are: Jen McDonald, the SVP of digital marketing group; Douglas Brown, the SVP of Mobile product development and David carrel, the SVP of strategy and analysis.

It is observed that mobile banking also provided a decent chance to the bank to recapture some of its lost market share during the financial crisis. Moreover, the issue of providing complex quality versus usability was another issue to be handled.

Identification of the Main Issues/ Problems:

Major problems that BOA is facing include; in the short run, how the BOA can improve its mobile banking services and possible profitable alternatives, which will increase the exposure for mobile apps. Moreover, to control the mobile services that will lead to long term profitability and increase the customer base. Along with this, the major problems are the cost associated with package delivery, competition and dissatisfaction related to customers’ reactions.

Analysis of the Issues;

The banking industry is emerging in a very fast pace, which requires improving the internet accessibility and development in the mobile banking platform.

The BOA’s operating managers require leveraging the mobile banking services in order to meet the needs of the business. For this purpose, the management has to develop the marketing strategy for packaging the mobile banking program that will create differentiation in products as compared to competitors as well as it will provide benefits from this platform. Along with this, the BOA has to fulfill the needs of internal branch demands for mobile banking facilities that will affect the banking industry economically in the long term.

Comments on effective solutions/strategies:

The management is facing the strategic issues for extending the mobile banking coverage, the system that should be used for mobile banking platform, the use of mobile banking with other channel mix and lastly,promoting the program which would have balanced efforts such as increase in the number of customers by providing high quality services and increase the revenue stream as well. This case provides alternatives to overcome this problem such as; increasing the functionality of mobile apps to build new apps or to refuse to add the complexity to current mobile app.Bank Of America Case Solution

Alternative 1: to increase the functionality of mobile apps:

It includes combining more portals and features into the existing apps from one login page. It provides the advantage of cost savings as the bank would have to charge or bargain for a single price reduction. It would increase the channel depth, which would allow the mobile banking services tobe seen through in the single page.(Basloe, 2016).In this way, by adding more features into the mobile apps, it would allow the bank to fulfill the customers’ needs. On the other hand, in order to add the functionality, it may lose the high profile customers asit may be very slow to operate.........................

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