Weaknesses -Declining Net interests margins- The Bank Of America Corp total gain welfare edge has been declining since 2003. Although its gain welfare income was estimated to be around $20,505 m in 2003, it declined to $34,433 m in 2007. – Only Good Profits in the US- While the Bank of America does have clients in over 150 countries, but only 90% of its national market make their revenue in sales and just 10% internationally. -Decentralized- Due to Bank of Americas large size, they are not as nimble as smaller, regional operators. Lack of Flexibility- Many other banks along with Bank of America now have many ways to use mobile banking, and some banks have added new features that Bank of America does not have yet. Opportunities – Person-to-Person Payments- With the new mobile market, many new ideas continue to arise. First was the ability to have P2P payments on apps and mobile marketing. Bank of America is in prime position to continue to jump on new mobile opportunities for growth. -Foreign Expansion- Bank Of America Corp can now easily expand and enter international markets.
There are constant improvement and up gradation of processes in the banking industry which is an opportunity for the company. -Mergers- Further consolidation in the banking industry and the potential Merrill Lynch acquisition. Threats -The Economy- The recent financial economic turmoil and increasing Unemployment are threats for the company. – Security Issues- There is ever increasing in Restrictions in capital markets due to security issues and black money issues around the world. Competitors- The competing banks and financial institutes are improving their strategies and policies to capture the market share and pose a threat to Bank of America Corp’s market share. -Lawsuits- The insurance giant, American International Group filed a $10 billion suit against Bank of America, accusing the bank and its Countrywide Financial and Merrill Lynch units of misrepresenting the quality of mortgages that backed the securities AIG bought. Key Issue: The Central issue facing Bank of America is regarding its mobile banking part of the organization.
The Term Paper on Reserve Bank Financial Market Funds
Financial markets play a crucial role in the operation of modern market economies. They provide a return for those who have excess funds or savings, while making loan funds available to those who need additional money. Not only is the financial service industry one of the largest industry in Australia, but its actions also influence all other industries because of its key role in the economy. For ...
Due to the financial crisis, banks are looking for new ways to expand to people, stay loyal and continue to make profit. The company’s’ mobile banking has done well over the years, but the market continues to evolve. Bank of America needs to find away to stay involved with the trending mobile banking while maintaining their financial services industry. Possible Courses Of Action – Bank of America had a possible idea of creating different apps for different target groups. For example an app for Merrill Lynch brokerage, or for a small business customer. Changing the apps features all together to make the app have all the features they want. While hoping it does not become too complex for the average user. – Rather than just having an app, Bank of America could also add mobile messaging, and mobile Internet. This would allow customers to check balances and other things via text message. – A 2009 survey of 500 mobile users showed that almost 60% of consumers not currently using online banking would be interested in using at least one mobile banking service.
The Essay on Mobile Banking Banks Wireless
The Status of Mobile Banking In July 2002, UK's online bank Egg stated that they were in the process of developing mobile applications. Chris Nelson of Egg's technology concept development group indicated that "the future of banking lies with mobile devices closely integrated with Web services" ("m-banking is there... ." ). This signaled to many of the skeptics that mobile phone banking or 'm- ...
Bank of America could allow consumers not currently using online banking to use the mobile banking service. Decision Criteria – Impact for whole organization of putting new resources to a new idea or app. – Ability of the their mobile banking to continue to provide easy helpful service to the consumer. – Costs of new ideas and how those costs affect profits in the long run. – Keeping the Mission Statement in mind, not only mobile banking, but also a well-known company in the financial services industry.
Recommended Course of Action: I think that Bank of America should create new apps to be able to have apps that target different groups. Although this would cost some money in creating the app, I believe the potential customer gain and satisfaction they will have from these apps will out way the costs. Competitors have created many new ideas in the mobile banking segment, and Bank of America needs to keep up with the trend. Adding new specific apps could give them an even larger position in the mobile banking market.
