Bank Of America Customers Most-Willing To Pay $3 For Mobile App
Investments in software development by BoFa paying off as SNL Financial mobile banking survey showing BofA’s customers find mobile high value for money.
Bank of America Corp’s (NYSE:BAC) customers find the financial company’s mobile banking application as most highly valued for money, with many of them willing to pay $3 for its usage. That is according to the results from a survey conducted by SNL Financial regarding the findings about consumer insights of mobile banking apps, in terms of their service and, most importantly, the ability to pay for the service.
Around 33% customers of Bank of America say that the bank’s mobile banking app is definitely worth its value. More precisely, customers are ready to pay $3 for using the service. However, the bank does charge a fee for its usage, but indicates that customers are mostly satisfied with the BofA’s mobile banking app operations, as they are willing to pay a premium for it. At this stage, the bank has not indicated any intention to charge any fees, at least for now, unless they view this survey with utter delight to bring it to the attention of the top management board. Meanwhile, Capital One, recorded the lowest percentage of customers who are willing to pay a hypothetical fees, at just 18%, against the industry average of 24%.
Other features from the survey revealed that, these customers, who are more willing to pay for the hypothetical charges, originate from the Mid-Atlantic States and West Coast. In addition, along demographic lines, older millennials and Generation-Xers with an income of over $75000 were more likely to pay the hypothetical fees. When asked about the missing features from the mobile app, less than half could not find anything missing from the apps, though 15% differ by saying that it should have a feature of person-person payment while comparing the savings and loan rates. The low fees compelled them to switch from other banks in the past 12 months.
The result may not be entirely surprising given that BofA has been investing and restructuring its I.T. infrastructure. The bank has been considering developing its own software-based information technology infrastructure to reduce the compatibility issues faced by its traditional vendors. It is a process known as ‘virtualization’, in which the bank will replace expensive piece of hardware with cost effective software. This is done to connect this infrastructure readily with the different business segments of the bank, while serving to both the corporate and retail customers, as they seek to have access to other bank related work outside business banking hours.