Essay on Bank of America Mobile Banking
On a cold morning in January 2010, Jen McDonald, head of Bank of America Corporation's (B of A) Digital
Marketing group, walked briskly to the conference room to discuss the future of the bank's mobile strategy with
Douglas Brown, senior vice president, Mobile Product Development, and David Carrel, senior vice president,
Strategy and Analysis at Starcom, the company which the bank worked with for internet.
Bof A launched mobile banking in May 2007, which allowed customers to access the bank through a mobile application (or app) on their smartphones, and through mobile web on their phone's browser. Brown, who was responsible for the development and launch of mobile banking, reported on the current status, "In less …show more content…
Market Size and Consumer Adoption
In 2009, an estimated 10 million consumers used mobile banking in the U.S.; by 2014 this number was expected to grow to 37 million, representing 30% of the total expected online banking users in the U.S. Total annual transactions for mobile banking services were expected to increase from about 180 million in 2008 to 2.4 billion in 2014. Improvement in mobile devices and networks, better features from banks, and increasing awareness among users were the main drivers of growth.
Most banks required customers to be registered online banking users before they could sign up for mobile banking. However, 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. In early 2010, Wells Fargo allowed customers to sign up for its mobile banking service, regardless of their online usage.
In spite of increasing interest, mobile banking was still relatively small compared to other banking channels. According to an American Bankers Association survey, only
1% of respondents considered mobile as their preferred banking method, compared to 25% for online