Tomahawk, WI 8/21/2013 (Basicsmedia) – Bank of America Corporation (NYSE: BAC) plays both the roles of a banking and financial holding company. As a financial institution it serves a wide range of clients, from individuals to corporations and governments all over the world, and not just the U.S only. The bank recently reported that its small business mobile usage has gone over and beyond the 1 million mark. It is instructive that the bank has reported this development during a time when all indications seem to suggest it is struggling. Is this development likely to change how investors view BAC?

BAC Must Invest More in Pleasing its Customers and Investors

Every product which a financial and banking institution such as BAC comes up with should ideally be geared towards seeing an increase in revenue. Many banks went through a torrid time during the financial crisis which affected the whole globe from around 2008, and whose effects are still being felt to date. As a result, revenues dried up and profits were not at the level which most of these banks had been accustomed to. If more than 1 million small businesses prefer to use mobile devices to conduct their banking transactions, this shows that all is not lost.

This is a new development which the bank can use to ensure that its revenue doesn’t suffer in any way. At least, it’s the first of many steps aimed at seeing that the bank is on its way back up to where it used to be prior to 2008, when the whole banking industry suffered a great loss of confidence both by investors and the public in general. Mortgages, credit cards and loans, which were considered mass market products aimed at increasing revenue, are not as attractive as they once were. It is on this premise that introduction of mobile services banks is better appreciated.

BAC Must Use Information on Clients to Make Money

There is a truckload of information which BAC, and other banks as well, hold about their clients. Often, we see a case where banks fail to see the economic advantage they can derive from such information, as long as they are used legally and properly. The information which these banks have on their customers can be used to come up with products which meet their needs. Each customer is an individual with needs as different from the next one. BAC will have a better understanding of its customers, if it uses the individual data it has on each of them commercially.

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This is the new segment which BAC has to cater for, and ensure that they are served well at all times. This strategy offers BAC the chance to redeem its image which has taken a serious beating. It shows that the bank is at least embarking on new strategies which it hopes will change the way it has been known in the past. Some of the mobile devices through which these BAC banking services are available include iPhone, Android phone, iPod touch, Blackberry, Windows Phone, Kindle Fire, Android tablet and the iPad.

I believe that the bank is on the right track with this strategy, and give it a thumbs-up for the effort. If harnessed well, this is one of many ideas which will return investor and customer confidence.

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