Bank of America is not doing well. After nearly $45 billion in bailout money was dropped into the failing institution, BoA recently announced that they would be closing the doors on nearly 10% of their 6100 branches in the near future. Although, they did post a strong second-quarter, the bank continues to feel the impact of their default loans.
For many consumers, this is the time to get back to basics. Saving money. What should BoA and others like them do?
It's simple. Focus on helping people save their money, and don't look for ways that you can suck it out of them. Access vehicles by which consumers can continue to use their money effectively and simply must be made available to the mass market.
It would be nice to see some much needed funding dropped into marketing and advertising for mobile banking. BoA started down the right path with their Blackberry Storm/Verizon product launch product placement ads, but nothing since. And let me say, I think they have a great product there.
It's no secret that banks around the world have taken a much more calculated approach to their businesses, but this must be tempered with innovation and change. Mobile banking technologies continue to collect dust on the shelves because the corporations that hold them don't know how to make money on them. Old banking mentalities of money making on everything are what hold back progress.
By cutting back on obsolete branches and consequently saving millions on human resourcing, the bank should now focus their attention and money on growing these new and next generation vehicles.
Make no mistake, Bank of America has blazed a trail for mobile banking in North America; HOWEVER, the history books will only write about what they did accomplish... not what they tried to do in vain.
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