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Bank of America’s E-Business Challenges


E-business is a key trend in the current system of management. This system has taken roots in the management inducing processes like Enterprise resource planning and client-server architecture (Chen, 2005:18). However, the adoption of electronic businesses in many companies faces criticism as it poses a risk to customers who use it. Despite the many cons attached to e-business, there are still a number of challenges that accrue. The paper discusses on e-business challenges that the Bank of America faces.

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The promoters of the Bank of America have not conceded on the matter of going e-business. This problem has direct relation to the size and the financial ability. The bank requires sufficient funding to facilitate the process and eliminate the digital divide. Financial security issues associated with e-banking have made it hard for the bank to decide on the matter. The cost of installing and maintenance of the electronic servers is an immense challenge to the banks.


The effect of the electronics management is more adverse on human resource of any company. The issue of technology affects job analysis, planning, design, and orientation. It has brought more confusion to the human resource management on whether to adopt e-business or maintain the olden brick mortar method. Therefore, most companies including Bank of America are reluctant to adopt the system because of the challenges associated (Chaffey, 2007:112). The cost of assimilating the technology to the personnel is also remarkably unbearable. The company has to train its personnel or acquire trained personnel.


Although the introduction if the e-business aims at introducing security to the business, there are many risks associated with it. Software hacking has been a serious problem to the banks where individuals use viruses to the bank’s software in order to access bank accounts. Many banks are victims of this, hence millions of dollars come to the wrong hands. E-business has facilitated fraud in the banks (Turban, et al, and 2008:78).

Strategic alliances

Bank of America is striving to manage alliances despite the challenges associated with it. The bank has been facing a challenge in identifying the suitable partners to enter in a strategic alliance. The bank has many affiliate partners, but the problem comes in identifying the most suitable partner (Turban & Volonino, 2010:38). The compatibility modes of the reliable partner in size, skills, and objective take a different stake leaving the bank in a quagmire.

Customer orientation

Bank of America faces challenges in the maintenance of rapport with its customers. The adoption of e-business eliminates the direct interaction between the bank and its customer. The bank cannot get first hand information from its customers hence the art of customer orientation derails. Bureaucracy in the bank administration widens the gap between the bank and its customer (Bocij, Greasley & Hickie, 2008:123).

Globalization and technology

The emergence and spread of globalization has forced many banks to undergo various challenges associated with it. The bank has no option but to assume the modern technology in order to meet the various cultural demands. Globalization has brought in competition to the banks forcing them to acclimatize to avoid lagging behind in terms of technology (Chaffey, 2007:145). The adoption of the SME’s has been a formidable challenge to the bank. The bank has to update its personnel to keep them abreast of the technological changes.

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Bocij, A., Greasley, A., & Hickie, S. 2008, Business Information Systems:- Technology, Development and Management for the E-business, Harlow, FT/Prentice Hall.

Chaffey, D. 2007, E-business and E-commerce Management, Upper Saddle River, NJ, Prentice Inc.

Chen, S. 2005, Strategic Management of e-Business, John Wiley & Sons, Chichester Ltd.

Turban, E. et al 2008, A Managerial Perspective, Upper Saddle River, Pearson Education.

Turban, E & Volonino, L. 2010, Information Technology for Management, New Jersey: John Wiley & Sons Inc.

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StudyCorgi. 2020. "Bank of America's E-Business Challenges." December 18, 2020.


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