Financial institution of America – Circumstance Analysis



Kesha S Mitchell

April 30, 2013

AMBA 650-1134

Marketing Managing and Creativity

Professor Philemon Oyewole

In 2007, Lender of America (BofA) Corporation launched the largest secure mobile phone banking service in the United States and has above four , 000, 000 mobile financial customers. BofA mobile bank service shows the customers use of their examining accounts for stability, transfers cash and to settle payments through a mobile application (app) on their cellphones and the mobile phone web on their phone's browser.

In past years, BofA have been discussing the bank's mobile phone strategies concerning mobile bank and how to incorporate mobile financial that is specific to the client's business needs including credit cards and mortgage loans, etc . The growth in mobile users was a great eye-opener to get the selling banking organization and has caused financing margins shed and fresh federal regulations to be integrated. BofA is constantly on the struggle to position their mobile banking companies in the constantly changing financial industry. The underlying complications facing the business are the pursuing: * How you can widen the bank's mobile phone applications with the addition of more features 2. How to create different programs for several target teams

* How will mobile financial affect all their clients in the long term


Bank of America (BofA) Organization is headquartered in Charlotte now, NC and was established more than a decade ago from an organized merger between BankAmerica Organization and NationsBank. BofA is an American international banking and financial services business for customers, small and mid-sized businesses, govt and corporations. with a array of banking software program as investment banking, global wealth management, asset managing, large company lending and retail banking (e. g., deposits, charge and charge cards, mortgage loans, lines of credit). Throughout the years, the enlargement BofA got made a lot of acquisitions with a bank--FleetBoston; credit-based card merchant--MBNA; purchase management company--US Trust; mortgage loan company--Countrywide; and Merrill Lynch. By investing in these firms, BofA is among the most second most significant financial institution in the usa and retains the top location in on the internet and mobile financial in the country.

In 2009, BofA covered 82% of the US population, offered over 53 million buyers and small business, purchased 6, 000 financial centers and installed 18, 000 ATMs across the country, (Case, pg. 2). Within that same 12 months, BofA's revenues were at its all period high as well as the company experienced about 250, 000 employees. BofA experienced a substantial amount of loss at Merrill Lynch and losses connected with real estate reinforced equities (e. g. Fannie Mae and Freddie Mac) during the economic crisis. The US government presented guarantees and billions of dollars in capital to BofA to sustain the financial market however the support from your federal government led the investors and buyers to give up a certain percentage of ownership to the government to avoid bankruptcy. This later on led to the stepping down from the CEO, Tobey maguire Lewis, as well as the head of consumer and small business bank, Brian Moynihan, took over as CEO in 2010.


The financial industry is composed of financial services, which usually embodies a diverse range of products and services in the banks and savings corporations, trust agencies, finance and leasing corporations. The Government Deposit Insurance Corporation (FDIC) protects a lot of activities with the financial market. The FDIC insures deposits in bank institutions; identifies, observes and addresses hazards to the pay in insurance money; reduces risk outcome on the nation; and may even assist the results on the economic climate when banking companies fail.

The economical industry went through turmoil in 2008 and 2009. The collapse in the US real-estate and mortgage loan markets brought on a remarkable fall in prosperity represented by simply mortgage securities which led to...