Bank of America: Question #3 - Brand Position

This is the first time I have heard about mobile banking app. I am interested, but concerned about the security issue very much. I have use online banking before, it requires frequent change of password and verify of the devices you are using. As a user, I think most of the functions we use are probably the same. So in my opinion, there will be not much distinguish on the features development, probably reliability and security will be the main point that I am concerned about. So I think BoA can make some invest on security!

Hi there,

My thought is that online banking is getting more and more important today. Indeed, currently, Im getting more and more information on my account online as it is faster, I can access it everywhere and it is free.

I think I wouldnt move into a bank that doesnt offer this kind of service and a lot of customers think the same way as I do. Textos are not enough today and a bank needs to provide a full range of online ressources to its users.

I would recommend BOA to invest in online banking today. I think it is essential to be a strong player in retail banking

I think they should focus on mobile banking because mobile banking is a relatively new area compared to the existed online banking and the long existed ATM. Say, most banks have already been mature on ATM, and so has BAC, so it will only gain some marginal benefits.
But for the mobile banking market, it’s different. Since BAC has gained some advantage in this market, they should try to develop more from this immature area. However, it doesn’t mean that it’s better to make the bank’s mobile app more complex by adding more features. I think they should try to focus on sth like Human and Computers’ Interaction, make the app more friendly to users and also try to integrate it with existing channels.

First things first, I'm not using mobile banking applications, as I do not really see the use of them. When I'm out and abroad, chances are slim I have to do a transaction immediately, right in that moment. If I'd just want to check my account balance, I can use the mobile website. There is also additional security concern by granting access to your bank account by another terminal and I didn't even bother to read the Terms of Service of the app to find out whether or not my login information lands at the software company who developed that application.

Also, in my opinion, desktop online banking provides much more potential by providing better usability, user experience, control over security. Subsequently it is a good target to increase functionality. Money is serious business, and I prefer doing it well thought-through and prepared in my own home. I'm not carrying around important papers and documents with me anyway.

Unless I'm withdrawing money, I'm not using ATMs either. Not having to leave the house to do your business beats everything. So I'm all for having more functionality in online banking -- after all, that's what I use. The view might, of course, differ for people who actually use mobile banking with a benefit.

Additionally, adaption rates of online banking are probably much bigger than of mobile banking. So one short- and medium-term goal should be, how to transfer customers who like to handle their business in the local branch of the bank, to online and to reduce the need of online banking users to visit the local branch. As could be read in the case, the cost of manually handling a customer request in a branch is by a multitude higher than of automated online requests. This way, the bank might be able to significantly cut costs by digitalization.

PS: The mobile wallet with NFC and stuff is a totally different story, and I'm curious how that develops.

In a mature and highly competitive industry, many banks (big and small) are differentiating themselves to provide users with a more customized solution. While some banks such as CHASE, focus on the technology of mobile messaging (SMS) to send alerts and update account balances across all wireless operators to reach a much wider audience, others are focusing on more complex app features to integrate mortgage payments. Because technology resources are scarce, how should BOA position itself to increase its market share? Focus on mobile banking (building new apps) or other business units such as online banking and ATM's (increasing functionality)?