In this context some of the technological challenges

Info icon This preview shows pages 5–6. Sign up to view the full content.

invest in the maintenance of the Corporation’s technological infrastructure. In this context, some of the technological challenges that the Bank of America has been facing for decades include digitalization and automation of its technology system, need for technological skills for rapid innovations, and lack of customer flexibility towards the technological changes. However, the bank is currently focusing on redefining its retailing banking and improving customer experience, both in the financial centers and through the digital platforms ( Kolodinsky, Hogarth, & Hilgert 2014). The corporation recently adopted the “high-touch, high-tech” initiatives to describe how it monitors customer behaviors and combine with the improvement strategies in all the 4500 financial centers across the country. the corporation’s top management believes that a new era of digital capabilities would improve customer experience. The noticeable impact of the company’s investment in the digitally supported mobile apps and ATMs is the improved total sales by 30 percent. Considering the fact that debit cards are also changing at a faster rate, the Bank of America is currently implementing the use of chips designed for users to insert their cards into the debit machines, rather than swiping. Legal Factors The Bank of America operates under government, labor laws, and privacy regulations. Several laws have been introduced in the U.S to control to control banking industry. For example, the introduction the "Federal Reserve Act of 1913," followed by the "Glass Steagall Act" and the "Dodd-Frank laws" that were meant to control and oversee compliance of the banking players have presented variable challenges to the Bank of America. The Bank of America is a large employer of many American citizens. However, it is adversely affected by the labor laws and minimum wage regulations, which differ from one state to another. The bank of America is also obliged to adhere to strict laws regarding privacy, consumer laws, and trade arrangements to confirm the legal framework governing the American banking industry and ensure the security of public savings. Environmental Factors Different states in the U.S. have different markets and environmental standards and laws that impact the profitability of the Bank of America. For example, Florida and Texas have different liability clauses and environmental laws that respond to environmental mishaps. In a bid to comply with the environmental regulations, the bank of America has invested heavily in the paperless banking. This is an initiative of utilizing the evolving technology, especially the mobile apps and debit cards with the aim of reducing the use of papers in the corporation’s financial holdings ( Püschel, Mazzon, & Hernandez 2010). The newly adopted mobile apps have also helped the corporation to reduce individual environmental footprint ( Püschel, Mazzon, & Hernandez 2010). The mobile apps and online banking services have solved the traditional challenges in which customers were forced to directly drive to the bank’s branches to solve their problems.
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 6
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '16
  • Bank of America Corporation

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern