Bank of America Mobile

Case Analysis Worksheet

1. Skim the case quickly to get an overview of the situation in presents. What is this case
about? (5 pts)
The case focuses on three members of Bank of America management who meet to
discuss the future possibilities of BofAs mobile strategy. In 2007 BofA launched a
mobile banking platform that has generated millions of customers. With its popularity,
management has requested that more complex features and functionality be added to this
mobile banking app and online platform. These members must identify how digital
banking has evolved, and how they can leverage this evolution to create a more
comprehensive solution for customers without sacrificing ease of use. Through alternate
apps, SMS options, and other routes, they must also identify target markets and goals in
order to positively position BofAs mobile presence to remain competitive in the future.

2. Read the case thoroughly to digest the facts and circumstances (define the issue). What
do you know about the person and/or situation? (5 pts)
The key issue in this case arises from the constantly changing technological atmosphere.
Bank of America has created a mobile/app presence, but with increased customer power
it must meet increased demands for functionality from both internal and external sources.
Early on, BofA decided to pursue mobile banking as opposed to SMS, so it is imperative
that the company continues to innovate and evolve that mobile presence to retain market
share and grow revenues. McDonald, a member of management involved in the project,
commented on the base idea of the mobile apps: While building mobile appsis
expensivebetter to start small with a richer customer experience. For BofA then,
making sure that online and mobile banking caters to ever changing needs of users.
Remaining at the forefront of mobile/app based banking is key for BofA to retain current
customers and attract new ones looking for a superior user experience.

3. Carefully review all of the information presented in the exhibits. Is there any information
presented in the exhibits that helped to inform your diagnosis of the situation? If so,
which information and why? (5 pts)
To gain an understanding of the current market and banking ecosystem, exhibits 2 and 3
paint an illustrative picture. In Exhibit 2, 44% of people said they had no need of mobile
banking, an astounding number in comparison to current banking trends. Also, the fear of
cyber security and cost of data to use mobile banning were significant factors. While
security is always a risk, the idea of limited data has become a much less significant issue
with large Wi-Fi networks and a variety of affordable data plans. At the same time period
though, Exhibit 3 clearly shows the positive effects of online banking, even in 2008. Over
multiple years, users who engaged in online banking shows a significantly larger
retention rate than those using traditional banking methods.
Exhibit 1 illustrates a different, yet important concept. Highlighting the mobile apps of
Wells Fargo, Citi, and PNC, it shows that while each has a generic banking app, they
have separately created auxiliary apps to try and capture specific market segments. Wells
Fargo has a CEO app for corporate users, Citi provides an app to view global currency
exchanges, and PNC has a virtual wallet to appeal to a younger, more tech-savvy market.
These different market strategies show the potential to attract new customers based on
unique services provided by different financial institutions.

4. Decide what the strategic issues are. Explore the issues, situation, and ramifications of
actions: Are any assumptions being made? Is a bias shown by any of the characters?
Are there any fallacies or faulty thinking displayed in the case? (5 pts)
One of the biggest strategies that must be addressed is how to best serve current
consumer needs and try to anticipate future trends. Previous assumptions would have
shown no need for mobile banking, and a severe reduction in overall online banking as
well. It is important then for Bank of America to make sure that in its move to revamp its
mobile presence, solutions for the future, and not just remedying current needs are
addressed. As Henry Ford is attributed to: if I asked the people what they wanted, they
would have said faster horses. Biases that narrow viewpoints to current problems or
tasks can be helpful in providing a standard for mobile banking, but can blind the

management team from seeing future possibilities. BofA is attempting to expand their
mobile banking applications, but thinking in the past (SMS, etc) could be holding them
back. At the same time, issues of cost cannot be forgotten. While providing large changes,
new apps and banking segments may be a significant step forward, their benefit may not
outweigh the massive costs that can be seen in app development.

5. Check out conflicting opinions and make judgments about the validity of all of the data
and information provided. What are the possible solutions to the case? Is any
information missing that prevents you from offering a solution? (5 pts)
The information provided in the case is perfectly valid and provides a fair amount of
information describing the mobile market. A large segment is missing though, and that is
in regard to the meteoric rise of smartphone use in the past 5 years. The exhibits and
discussion is based on technologically that while only a few years old, ahs already
become obsolete in some ways. The idea of apps not taking off because limited number
of people have smartphones or sufficient internet access is almost a non-issue at this point
in time. Given that however, there are multiple courses of action that can be considered.
First, redesigning the current mobile to incorporate other bank branches and features.
This would allow for more market penetration by simply adding to a product that many
BofA users already rely on. Alternatively, BofA could consider moving those new
features into separate apps, for corporations, P2P payments, etc. This would give
consumers more choice in what features they need without cluttering a single banking
system. There was also discussion of SMS routes. While this is a possibility, the prices of
carrier services must be carefully weighed against the costs of app development and
maintenance. It does however provide banking services to customers who may not have
sufficient data access to the typical mobile platforms.

6. What recommendations or plan of action would you make to the person or organization
being discussed in the case? Why would you make that recommendation? (5 pts)
The best recommendation at this point is a two-pronged approach to the mobile sector.
First, BofA should offer more services within their existing apps and frameworks. Not
cluttering an app, but rather providers more essential functions like loan balances, credit

card information, etc., in addition to basic balance and transfer features will ensure that
BofA remains competitive with other firms by offering an inclusive app experience. On
the other hand, BofA should also develop a secondary app. At the beginning of the case,
the management talks about providing a better user experience, even if it may incur
greater initial costs. P2P has become a large banking driver, with consumers willing to
wirelessly transfer funds and make purchases with NFC and other technology. By
creating a proprietary app, BofA can ensure that transactions remain controlled and
secure through their primary systems. This new app being optional also allows the main
banking experience of BofA to remain whole, while giving those consumers who want
extra features the ability to supplement their mobile banking experience.