The Customer Effect

Inside Bank of America’s mobile-financing strategy for small businesses

  • No matter how easy or even pleasant technology makes everyday tasks, people will always want at least the option to call on human help, at least according to Bank of America view
  • B of A just enabled small business loans over the mobile banking app, but small business head Sharon Miller said the announcement is really about its overall vision to combine technology and customer service
close

Email a Friend

Inside Bank of America’s mobile-financing strategy for small businesses
No matter how easy or even pleasant technology makes everyday tasks, people will always want at least the option to call on human help. That's the Bank of America perspective. “They’re complementary, one doesn't exclude the other,” said Sharon Miller, head of small business banking. “I go online and I’ll research and look at the information, but when it comes to getting the advice, looking for a loan, getting someone to tell me what I need to think about -- I want to talk to someone… That’s what the basis of our company is built on. Our people make the difference.” That’s coming from perhaps one of the most progressive of the major U.S. banks when it comes to digital strategy. It's been one of the most aggressive in reducing its branch presence, it was among the first to upgrade its ATM fleet with new technology to giving customers greater choice of transaction type (like check cashing, making credit card payments, choosing their preferred denominations when withdrawing cash) and last year it was the first to deploy cardless ATM capability. On mobile it was ahead of the digital game with Touch ID, debit card toggling and fraud alerts to the app. In another move on Wednesday, it upgraded the app to allow small business customers to apply for a loan or credit line directly from the app, making it a front runner in a market where most banks have yet to perfect their most basic mobile banking strategies for consumers, let alone those for corporate or small business customers, or even make in-branch or online banking functions just as easy to execute on mobile. As part of the app upgrade it’s also giving small business customers a loan product tool that helps them find the right loan for their needs, monthly loan payment calculator and the ability to connect with the bank’s small business specialists through online chat, phone or by scheduling an in-person appointment with a small business banker through their phone. It’s really just another step toward the bank’s overall vision of making every banking experience the same across channels, according to Miller, by combining technology and customer service. With 23 million active mobile users, B of A reported a 38 percent increase in sales over mobile over the last year. More than 1.3 million of them are small business clients and the bank says the number of small business customers using the mobile banking app has increased 14 percent in the last year. “Our technology is there to help us keep up with everything happening in the world and the things consumers are demanding, but no matter how you slice it, there’s a reason we have 4,600 financial centers across the country and 2,000 people dedicated to small business across the country,” Miller said. “Thats the differentiator of us versus fintech or a community bank: we have size and scale to make it relevant, but we also operate in 87 different local markets with people that make local decisions and operate in those local counties.” Listening to what takes place in those conversations, as well as feedback from online channels and customer surveys, has been “the key" to B of A’s digital success, Miller said when asked about how the bank came to identify the new feature as a need among its small business customers. “We aren't based on one product or one service, we start with the client and the difference between us and a fintech is our ability to have that local conversation,” she said. “We want to have the conversation that cant be replaced by just a product.” She mentioned the forthcoming launch of its digital assistant erica later this year, which will provide a voice simulation to help clients with their banking. Still, not even erica can replace the value of a human banker for B of A. Banking is, after all, about people -- and people are all different in their needs, preferences and capabilities. Sometimes consumers need things individually that a small business owner doesn’t, and vice versa, Miller said, but all small business owners are also consumers, and she wants to make their banking experience seamless no matter what hat they're wearing. “Small business clients have different priorities. They could be starting a business, growing it, transitioning… All of those stages require different skill sets. They're partnering with us to have that thoughtful discussion and get the right solution. Nothing just fits perfectly. Everyones different.”

0 comments on “Inside Bank of America’s mobile-financing strategy for small businesses”

The Customer Effect

‘We don’t make that much money on them’: The opportunities and gaps in banking with Gen Z

  • While Gen Z is estimated to have $360 billion in disposable income, only 33% of them are using a financial provider. 
  • David Donovan, EVP of Publicis Sapient, talks about the opportunity Gen Z represents for FIs and why they are failing at capturing the demographic's attention.
Rabab Ahsan | June 30, 2023
The Customer Effect

How are consumer habits and spending changing due to economic turbulence?

  • Economic turbulence is changing consumer spending.
  • 66% of people say that the current economic situation is making them reconsider how much they put aside for their emergency fund, while others are pushing away travel plans and dipping into their 401k.
Rabab Ahsan | April 27, 2023
The Customer Effect

22% of Americans think ‘net worth’ only applies to wealthy people

  • American consumers are more aware of celebrity net worth than their own.
  • Younger consumers, those heading towards retirement, and women are the most likely to not keep track of their net worth.
Rabab Ahsan | April 20, 2023
The Customer Effect

Trouble in paradise: How layoffs are affecting consumer relationships

  • The recent wave of layoffs is impacting consumers’ relationships.
  • 80% of those who were laid off themselves would consider leaving their spouse if they got laid off, too.
Rabab Ahsan | April 14, 2023
The Customer Effect

Quick Take: Scrutinizing the impact of inflation on consumers’ finances

  • Troubles in finance paradise continue. With passing months these anxieties have been growing and are reflected in other parts of customers’ financial habits as well.
  • With rising inflation, how are increasing rents, embedded finance, & layoffs affecting consumers' financial anxieties?
Rabab Ahsan | April 05, 2023
More Articles