Bank of america mobile banking swot analysis

SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. Many banks offer a mobile app to witness accounts, transfer funds, and pay bills on smart phones.

It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.

Bank of america mobile banking swot analysis

The balance sheet continues to improve over time as is shown in the analysis presented in Appendix A. Bank of America continues to be plagued with a very low level of customer satisfaction that were in part driven by their decision to concentrate more on internal efficiency and less on customers getting their transactions and banking done more efficiently McKenney, Mason, Copeland, Gonzalez, Mueller, Mack, MIS Quarterly, 21 3 , Today it is a significant drain in the company's resources, as can be seen from an analysis of the financial statements and SEC filings the company has provided in the investor relations area of their website. The costs of compliance and reporting will continue to increase however, creating an even greater strain on the bank's profitability over time. The Bank of America has been able to successfully navigate very difficult economic conditions globally and stay solvent, while also completing two major acquisitions during the same time. Another significant opportunity is the rapid adoption of mobile e-commerce and banking within global communities, many of which Bank of America already have established operations in Valentine, These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets.

Orr, Bill. A third core strength of the company is its continuing balance sheet strength and the support it has received from the federal government.

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With the strengths and weakness being clearly identified, the external environment of opportunities and threats must be analyzed. Government showing that the bank willingly allowed fraud to continue despite internal audits knowing that the action from the acquired company were unethical and illegal Gonzalez, Mueller, Mack, This SWOT analysis of Bank of America Corporation considers this internal strategic factor a weakness because it equates to high exposure to risks in the financial services market, particularly in the United States.

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These regulatory requirements are costly to comply with, requiring millions of dollars' in IT investments over time McKenney, Mason, Copeland, In the SWOT framework, this business strength leads to economies of scale that make the enterprise competitive, especially against smaller banks. Vulnerabilities based on dependence on the U. Customers that use mobile banking are not the …show more content… iii Transactions will still be done through ATMs, Call centers and IVR, which are 4 to 11 times more costly. Download this SWOT in word format. The takeover of Countrywide brings a very high debt load and liability to the bank, with a very high dependence on the domestic U. Therefore it varies from government to government. Analysis of Strengths, Weaknesses, Opportunities and Threats Strengths Bank of America is recognized as one of the leading brands in financial services globally, with a market value of their brand in the hundreds of billions of dollars Schultz, In the SWOT analysis framework, this internal factor is a weakness because it makes Bank of America especially exposed to risks and strategic issues in the American financial services market. Thus, this technological weakness included in the SWOT analysis is not unsolvable, but requires that Bank of America maintain innovative strategies to maximize the value and contribution of its IT assets to competitive advantages.

Download this SWOT in word format. The matrix is only a starting point for a discussion on how proposed strategies could be implemented.

It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.

Swot analysis for banks

The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. Judging from the mobile banking user forecast, the mobile banking market is believe to continue to grow over the next few years, to over 35 million users. Opening up of new markets because of government agreement — the adoption of new technology standard and government free trade agreement has provided Bank of America an opportunity to enter a new emerging market. Bank of America has since moved beyond these challenges and has been able to get the U. This diversity of revenue sources is also one of the catalysts of economic stability shown in Appendix A, Growth Profitability and Financial Ratios for Bank of America Corporation -- This lack of choice can give a new competitor a foothold in the market. Growth through product development 3. Intense competition — Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales. Digitization of technology- Technology is changing how consumers handle their funds.

New trends in the consumer behavior can open up new market for the Bank of America. Large organizational size and scale, including multinational business operations 4.

Given the rapid ascent of Google's Android operating system and the dominance of the Apple iOS operating systems, this area will continue to fl9urish as the majority of banking today is actually done online.

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In this SWOT analysis, such business strength relates to how the company builds its brand despite the hindering effects of competition in the financial services market. In an effort to weather the storm BoA began to incorporate mobile banking. Business growth and risk reduction through diversification Threats: 1. The many bank failures during the and timeframe have raised the costs of premiums for the banks that are still solvent. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance. Telecommunicating through virtual meetings which saves time and money is being embraced. Senate investigations of Countrywide completed.

New environmental policies — The new opportunities will create a level playing field for all the players in the industry.

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Bank of America SWOT Analysis Matrix [step by step] Weighted SWOT