Question

1. What is the dominant product technology used in the industry in which Bank of America is based?
2. Are technical standards important in Bank of America industry? If so, what are they?
3. What are the attributes of the majority of customers purchasing the product of Bank of America (e.g., early adopters, early majority, late majority)? What does this tell you about the strategic issues that Bank of America is likely to face in the future?
4. Did the dominant technology in Bank of America diffuse rapidly or slowly? What drove the speed of diffusion?

Answer 1

What is the dominant product technology used in the industry in which Bank of America is based?

The Bank of America is working in finance industry which is presently working mainly on digital platform. The bank of America has its own Global technology team who works in providing the leading edge technology for product and services offered by the bank. The company is leading bank in providing the latest technology based offering of products.It obtained 418 patents in year 2019 which was highest among the financial companies. It invest $10 billion every year on technology.

Are technical standards important in Bank of America industry? If so, what are they?

Technical standards required in banking industry: There is a separate law of Federal bank to govern the information technology in banking in US.All the banks providing online products or using technology should take care of aspects like two factors authentications, firewall securities etc. There are set standards made by New York State Department of Financial services which every bank to comply with.

What are the attributes of the majority of customers purchasing the product of Bank of America (e.g.., early adopters, early majority, late majority)? What does this tell you about the strategic issues that Bank of America is likely to face in the future?

The Bank of America is leading bank with best in class product and digital platform to offer its products in market.It has more than 10% of total deposit of the country. The main business areas are mobile and online banking, payments processing, technology infrastructure, cyber security, risk and capital management, and enterprise data management.The bank has a very high growth in terms of business.

More than 75 % of its deposit now comes through digital or online channel. The bank uses high level of Artificial intelligence and state of art technology for business which drives its business. They are Early Adopters of the new technology and Majority of its business as stated above is from online content.

The banks reliance on technology leads to a big control of cost and vast reach in the market. Being the Second largest bank in US, its business is growing many folds because of use of technology.

Bank of America is likely to face in the future?

The bank of America is one of the largest bank have a very challenging road ahead.The rapidly growing technology, consumer preferences, global economical changes and cost is major concern which bank has to manage. The growing risk of cyber security and risk management framework needs to be very strong and keeps on updating with latest technology is required at this time. The bank has to manage the cost and the use and optimal utilization of technology to keep its profitability p.

Did the dominant technology in Bank of America diffuse rapidly or slowly? What drove the speed of diffusion?

The diffusion of technology was very rapid in the banking industry in last decade. This was because of growing number of information technology updates and innovations, every this is now on digital platform be it any industry, so as banks also have to adopt the same and Bank of America is pioneer in bringing the technology into banking industry. The future of finance industry is technology driven which includes mobile payment networks, online product purchasing, virtual banking etc. The growing demand of technology like Smart phones, Smart Devices, Ecommerce etc also created huge demand for online and technology driven banking, This is rapidly growing and majority of business is coming through this channel.