Mounting government regulations and expected revenue loss has lead Bank of America to announce its launch of a new consumer banking strategy. The strategy is geared at bringing consumers “a better banking experience” through “focusing on a on a relationship enhancement strategy designed to incent customers to bring more business” and making “pricing more upfront and transparent.”
The strategy outlines vague innovations and measures that the banks intends to capitalize on over the next few months. eBanking in particular seems to be the first of many innovations we can expect as Bank of America begins to implement its new strategy. Bank of America hopes that the rewards and better pricing it offers through eBanking will attract more business. The bank also writes that intends on offering customers more choices on how to pay for banking services and “reward them for using certain products or bringing more balances.” The bank concludes its statement, writing that it will also look into developing new products that will target the needs of specific consumer groups.
Though the statement represents an effort to prioritize the consumer banking industry, it is clear that Bank of America really doesn’t have any monumental change or innovation in mind for how will proceed with its consumer banking operations. The statement is vague and indicative of two major problems facing the industry: innovation and differentiation. It seems as though the banks are fresh out of ideas now that lucrative late fee and interest rate policies have been ousted. Bank of America in particular certainly seems to be lacking when in comes to bringing new ideas to the table.
http://bucks.blogs.nytimes.com/2010/10/21/what-will-bank-of-america-do-to-its-checking-accounts/?scp=4&sq=%22Bank%20of%20America&st=cse
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