Bank of America: Broadening Internet Frontiers
Introduction
With the advent of various digital technologies, the banking industry experienced serious changes (Andal-Ancion, Cartwright & Yip, 2003). Thus, the biggest portion of communicational and significant part of transactional activities shifted from real to the web area. However, together with advantages, the development of web-technologies pose a number of serious challenges, which should be always accentuated by the managers of Bank of America.
The purpose of this research is to examine web-technology aspects relatable to the development of this institution. In particular, this paper evaluates current areas of using web-technology by Bank of America, and analyses the potential of increasing its web-presence, thus creating additional economic value, making its services more innovative and increasing intellectual capital.
Current use of web-solutions by Bank of America
Nowadays, Bank of America uses web-solutions in three primary dimensions. In particular, this institution focuses on using web-technologies for communicating with its existing clients and attracting the new ones, conducting promotional and advertising campaigns, and increasing the value of its offers.
Firstly, the Bank of America provides various online opportunities for communication between the clients and the staff. Thus, on-line chats are available for resolving daily matters between the clients and the company officers, although the most important inquiries can be settled via personal visits only. At the same time, web-technology allows the clients to identity the most closely located divisions of the bank of America. In addition, when personal presence of a client is required to validate some transaction, a client can inform the bank about the particularities of his inquiry, so that the banking agents are prepared for his arrival, and less time is spent for formalities and explanations.
Secondly, the Bank of America is using web-resources for marketing its services to the potential customers. Nowadays, the banking market is one of the saturated in the country. Not only the rise of alternative currencies, such as Bitcoin, endanger the very existence of a financial industry in its today state, but also alternative payment methods such as PayPal and Payoneer are dramatically rising. The research shows that more and more international transactions are processed by one of these solutions, instead of relying on conventional wire transfer methods. Therefore, in order to retain its existing clients and attract new ones, it is imperative for the company to explore the methods of advertising, which are effective for the economically active generations.
Today, the Millennial generation is gradually becoming a dominant workforce and the largest group of customers. The marketing commentators argue that the most effective forms of advertising banking services for this group is pop-up and affiliate internet advertising and mobile in-app promotion are the most effective. The bank of America is actively exploring all these options, specifically relying on advertising in the financial applications stored in Apple Store or Google Play. The services of Bank of America are also advertised through targeted advertising and use of social networking.
Finally, prosperity in banking heavily depends on hiring the best talents. Web-research provides advanced opportunities for identifying and negotiating with the best talents both domestically and overseas (Capgemini Consulting, 2014). Nowadays, each fifth senior employee of the Bank of America is of foreign background, and either submitted his application, or was invited for interview by the company human resources professionals while he was overseas.
Perspectives of Using Web More effectively
Continual development of the company web-capacities is a critical aspect of corporate success. In order to stay in line with the perpetually changing markets and customers preferences, the company has to consider making further investments in the following segments:
The potential of incorporating alternative currencies into the web systems of Bank of America
Although the boom of crypto currencies unexpectedly ended at the second half of 2015, the majority of analysts agree on the idea that this segment of financial markets is very promising. The idea of uncontrolled, independently issued currency, for which there is no central authority appears very attractive to the customers. State monopoly over issuance of currencies and, specifically, instability on the foreign exchange markets is a cause of intense societal criticism (Capgemini Consulting, 2014).
Because web-space is the platform of crypto-currencies circulation, the Bank of America should definitely include the possibility of buying and selling the most popular crypto-currencies in its online banking cabinets. Not only can this step secure the company from the repercussions of a potential overhaul of the global system, but also it can open a new channel of revenue for the company. For example, not a single bank offers the possibility of depositing crypto currencies. Many people like the idea of such currencies, but do not trust new financial platforms. By making the fusion of their approaches and Bank of America reputation and financial resources, the company can produce a new marketing model.
Reaching global audiences
The number of international companies operating in the United States is rising dramatically (Frame & White, 2009). Therefore, a justified marketing strategy is to start advertising on the foreign markets, especially in China, Japan and Middle Eastern countries. Web-promotion is the best way to deliver the offers of Bank of America to the potential customers in those countries.
Conclusions
References
Andal-Ancion, A., Cartwright, P.A., Yip, G.S. (2003). The Digital Transformation of Traditional Businesses. MIT Sloan Management Review, 44 (4), 34-41
Capgemini Consulting. (2014). Trends in Retail Banking Channels: Improving Client Service and Operating Costs. Web. Retrieved from https://www.capgemini.com/resource-file-access/resource/pdf/Trends_in_Retail_Banking_Channels__Improving_Client_Service_and_Operating_Costs.pdf
Frame, S.W. & White, L.J. (2009). Technological Change, Financial Innovation, and Diffusion in Banking. Web. Retrieved from http://w4.stern.nyu.edu/research/technological_change_and_fin_innovation_in_banking.pdf
