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Can Bank of America re-do its image?

edited February 2013 in Off-Topic
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  • edited February 2013
    I think B of A isn't going anywhere, but I do see alternative banking services eroding things a bit and taking a possibly significant amount of smaller customers. Things like Amex's Bluebird (http://www.forbes.com/sites/arjanschutte/2012/11/25/bluebird-vs-greendot-prepaid-wins/) and the new Green Dot mobile banking card that is FDIC insured (http://www.socaltech.com/green_dot_s_mashup_of_mobile_startup_bank_powers_gobank/s-0047254.html)

    Peer-to-peer lending sites are also attracting investment, but I continue to think that Visa and Amex (and probably MC) will continue to offer more basic banking services and draw away customers from basic/traditional banking. Visa, in particular, seems particularly focused on mobile and what they call "financial inclusion" (giving banking services to the 1.7B people or so with a phone but no bank account, and probably drawing in customers who do have a bank account but aren't happy.) Technology is going to change banking in many regards, and entities like BOA with tons of locations are not going to be nimble.

    It's going to take a while before banks regain some sort of positive image, and little they've done suggests they've learned anything from 2008.

    I continue to think that Visa, Amex, MC, Gemalto, Ingenico, NCR, and Fiserv are appealing plays on the changes in payments and banking - and there are others, as well. Monitise is also a tiny, highly speculative play. There are others.

    Payment infrastructure/point of sale is also going to benefit from Visa's requirements (and other companies too) under their Technology Innovation Program (TIP)
    http://www.nfcworld.com/2011/08/09/38989/visa-moves-us-to-emv-and-nfc/

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