Bank of America Wants You to Walk Inside Their Branch... For A Video Call?!
Convenience.
Have you ever been to Texas? If you have lived there even for a little bit, you know that you HAVE to know how to cook and eat Tex-Mex in your own home (at least a little bit).
If you have never heard about it: Tex-Mex cuisine (from Texan and Mexican) is an American regional cuisine that comes from the food creations of the Tejano people of Texas. And it just happens to be my favorite type of food every time I visited my host family from years ago when I was an exchange student in Rowlett, Texas.
Lake Ray Hubbard in Rowlett, Texas.
Source: Simon Beuse, Texas, 2022
Visiting them a few weeks ago, we were missing essential items for throwing together our Tex-Mex style tacos at home for that night (with the most important item being, of course, cheese). So I was tasked with the mission to rescue some of the best cheese I could find from the next Albertsons supermarket a few roads down the street to bring it home - quickly (everything else was almost ready).
Almost sprinting to the big, blue-edged entrance of the Albertsons supermarket, I suddenly had to stop. I found something hanging on a glass entrance door about twenty steps away from the entrance that looked like a weird curiosity (see below).
The ad made me stop my sprint to the Albertsons supermarket nearby.
Source: Simon Beuse, Texas, 2022
Taking a video call inside a store? Why would you do that? Doesn't everyone have a P.C. at home these days? Or at least a smartphone? And wasn't there a Starbucks here before (I favor it each time I am in the U.S.)?
I want to share what I found out about why Bank of America (BoA) why BoA thinks this is an excellent addition to its overall goals and strategy.
Continue to read to see why BoA wants you to walk into their store in 2022 - for a video call.
A Tech-Savvy Bank
BoA seems to be an overall rather "techy" bank. According to their own numbers, digital-only customers of the entity recently reached over 50 Million in 2022. Moreover, by developing many new features for its own mobile app and desktop applications, BoA seems to better consolidate its products into one single app for convenience and simplicity than other banks.
So why, with every single phone these days having video chat capabilities, would BoA want you to walk into a store for a video call when you can do it at your fingertips from anywhere? How does this remotely make any sense?
Options, anyone?
To answer this question, think of fast food chains around you. Why are we going to a Mcdonald's or a TacoBell when we know that the quality is not the best? And maybe not even the price?
There are several factors to consider, but one that is for sure is a magic word named "convenience." We are ordering food on UberEats because it is convenient. We request things we can buy in the store on Amazon because it is convenient (among other factors). We book a hotel online instead of calling a hotel in Indonesia because it is convenient (and often more secure and easy when it comes to language barriers).
Just as the convenience in the fast-food industry is a key factor, being near a local BoA branch and having the option to make a quick video call with a representative is the key here. It is another choice that can be convenient for someone that just happens to walk by.
Overall Strategy
BoA does not necessarily want you to come to their branch to talk to you via a video screen. You have the option to do this from home (another option). They do, however, want to give you the opportunity - just if you happen to pass by, you say. Easy access. Quick. It's all set up. No waiting (I am assuming here, I have never done a call inside their branches, so don't take my word for it).
If you boil it down, what is the general direction of BoA? What do you think?
If you want to believe strategy legend Michael M. Porter, BoA is pursuing a cost leadership strategy (click on the link for a detailed view of their strategy, it's a great source). According to strengths- weaknesses analysis of rancord.org from 2019, BoA's strategic factors look as follows:
Strengths:
1. High value of Bank of America brand
2. Considerable international presence
3. Large organizational size and scale, including multinational business operations
4. Wide scope of financial services
Weaknesses:
1. Dependence on current I.T. trends, equipment manufacturers, and software developers
2. Vulnerabilities based on dependence on the U.S. financial services market
3. Low degree of business diversification
Read up on the opportunities and threats of BoA if you are interested here and other digital efforts here.
Conclusion
With banking branches in America dropping by more than 38% in 2021 alone, what will come to your mind when you see a BoA branch next time? A forthcoming company? A well-positioned player? That you need cash for your next shopping trip to the outback of Nevada or Arizona?
If you ask me, I will likely smile a bit if I see a branch with a paper ad to come in and have a chat via a video call. Especially because branches seem to disappear quickly. But I feel that it will remind me that it is part and secondary goal of their overall strategy that has served so many companies well: Convenience.
Disclaimer: Please note that I am not a customer and do not receive any contributions or affiliation with BoA.
