Middle Range Theory Essay

cashbox of the States is the largest US affirm founded in 1904, it has expanded through several acquisitions. By the end of 2009, intrust of the States was the commercialise leader serving 82% of the US universe of discourse and over 53 million customers. They be positi unrivaledd as number unriv altogethered in online and spry bounding. Their unsettled banking utilitys were launched in 2007 and have gained 4 million customers in less than three years. Acquisitions make by banking comp both of the States prior to the financial crisis ca utilise a very strong put down in their stock price. nodes In 2009, 10 million customers consumptiond lively banking and this is expected to grow to 37 million by 2014. Customers that rehearse supple banking atomic number 18 not the same(p) as online customers. Customers that use mobile banking flirt a unlike segment of the market that other banking customers. Security issues, a perceived low value and expense, were the primary rea sons that customers did not switch to mobile banking. Podecadetial customers were reluctant to try a new banking service that are represented an unembellished equal and they were also afraid of losing control of their finances. debit entry cardholders were the most active users. It was convenient for them because they could check their account at every time. Customers that used this service changed their usual banking channels and as a resolvent -the bank had a higher retention for these users of online services. Competition/Competitors Bank of the Statess main competitors were Bank of New York Mellon, JP Morgan Chase Co. , Wells Fargo Co. , Citigroup, and PNC m nonpareiltary Services. These competitors also used mobile banking to ensure good service for their customers.They used SMS, customized web browsers and apps, depending on the bank and the customers they served. Citibank and Wells Fargo had varied application programs customized for their target groups. frequent Con text Considering that the banking industry is fragmented, with thousands of banks brooking retail and wholesale banking services ten of the largest banks hold 46. 4% of total deposits, Bank of America being the largest one. The mortgage crisis of 2009 led to a deep recession and spilled over into a financial crisis that affected the retail banking business.Banks started waving fees and offering additional benefits in mark to capture and retain customers. supple banking was introduced in the US in 2007 which added cost to each transaction. However, these costs were demoralise than call centers and interactive voice resolution costs. Bank of America had three options mobile messaging (mobile stream limiting without any software installation), mobile Internet (wireless application protocol), and mobile applications. Mobile applications in particular were more sophisticated and costly. Smartphone use was estimated to grow to 46% by 2014. Development DilemmaBank of America has two options to grasp the future of mobile banking 1) Build new and various applications to target various customers a) Pros i) Customers want customization in the products this get out increase retention and satisfaction. ii) Marketing strategies abide be segmented into different types of clients. This increases efficiency and reduces costs. iii) Superior brand and transmutation perception. a) Cons i) Cost of application creation will increase due to the different areas and type of customers at Bank of America ii) Any changes in the bank services will have to be applied to all apps. whatever customers will have to download and use various apps at the same time 2) Refuse to add complexity to the flowing application a) Pros i) No extra costs on building a new application ii) Customers that don? t like engineering science or doubt round security issues wont be affected b) Cons i) Other banks offer better mobile apps and this will increase their competitive advantage ii) Customer sa tisfaction will suffer if the app is not updated and does not fulfill their needs. iii) legal proceeding will still be done through ATMs, Call centers and IVR, which are 4 to 11 times more costly.Opportunities Since Bank of America is one of the largest financial institutions in United States that has millions of customers online banking is an important feature that offers to ease transactions and provides access to billing statements. However, because of the multitude of services banks offer it is overly-complicated to provide all items in one bundle. Because of this complexity (to add all the banking features in one app for mobile banking) Bank of America should target t adaptedt-users to provide all the banking features with different applications.For example Bank of America can provide tools like market reports for savvy investors or savings programs for households (where it is easier to keep track of expenses. ) Tablets are comparatively easier to use than mobile phones. Targ eting such a market at an untimely stage can broaden the spectrum in which Bank of America operates its mobile banking. This opportunity which targets future markets as computers are being replaced by tablets should not be forgone.Ease of access and use for customers with multiple Bank of America services, easier tracking of frauds or errors. ) Bank of America customers will be able to access a large array of services online. c) For round high-end apps a nominal fee may be charged to cover some of the technology budget. 2) Cons a) Customer information may be at chance as it is insecure to access sensitive information online for which Bank of America will have to maintain high privacy, increasing cost. b) Some of the features may still be complex and require customer support hotline. c) Customers may act on unintended transactions involving significant funds.Recommendations Bank of America needs to improve the complexity to the current application. After analyzing the options a nd the opportunity, we think that Bank of America has to describe themselves from their competitors while offering a great service to their clients, we would recommend to increase the functionality of the mobile app. This change will bring extra benefits to the different type of clients in a single download. The company will also cut costs in the type of transactions made by the clients.The continuous growth of the mobile market especially the Smartphone use is another aspect of the recommendation. Having a mobile has become a commodity for the population. The new generation will get so accustomed to this technology that they will be able to deal with any app complexity without any problem. Bank of America has to think of its future customers, not only the current mobile technology adaptors. 1) Pros a) Having a better application will differentiate the bank compared to their competitors b) Customers will have overall services in a single application.Mobile payment services would b e added to the app and will thread and benefit many customers. d) Transaction costs will become lower as the % of Smartphone users grows (46% for year 2014). 2) Cons a) Added complexity will discourage some customers to use the application b) Speed of the application may suffer if the customer has a bad connection or has too many applications downloaded in their mobile. c) The cost of developing a more complex application is larger and may require more expertise and training for employees and customers as well.