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Bank of America Case Study

Bank of America Case Study. Patricia DeFosse Nick Imprescia Felix Siloniz. NAICS: 522110 Commercial Banking. Engaged in accepting demand and other deposits and making commercial, industrial, and consumer loans.

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Bank of America Case Study

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  1. Bank of America Case Study Patricia DeFosse Nick Imprescia Felix Siloniz

  2. NAICS: 522110 Commercial Banking. • Engaged in accepting demand and other deposits and making commercial, industrial, and consumer loans. • Products: Depository Services, Real estate loans, Loans to individuals, Commercial loans. • Activities: Receiving deposits from customers and issuing consumer, commercial, and industrial loans. Industry:

  3. Commercial banks= 80% of industry revenue. • Savings banks= 15% • Credit unions= 5% • $3.75 trillion annually. • Serve individual consumers, small businesses and large corporations. • Ranges from banking, investing, asset management and other financial products and services. • Drives of demand: Business loans. The Market:

  4. Industry Growth Rate in U.S.2009-2010

  5. Citigroup Inc. • JPMorgan Chase & Company. • Wells Fargo Competitors:

  6. Experienced several ups and downs up to 2011 but will recover over the next 5 years. • Banks endured massive loan losses as a result of the • credit crisis. • Customers’ wealth has been increasing and there has been a trend in the direction of investment. • Increasing trend towards internet banking in this industry. Industry Trends:

  7. Founded in 1904 by Amadeo Peter Giannini and his son in San Francisco, California. • Originally called “Bank of Italy” • Renamed in 1998 when BankAmerica bought it • Leading commercial bank. • Listed as the third largest corporation in the globe • Bank to almost 59 million people in the United States • 19,000 ATMs • 6,100 retail banking offices. Company History:

  8. Company Overview:

  9. Strengths: • Leading market position in the US. • Online and mobile banking capabilities. • Serves one in two households in the U.S. and operate in more than 40 countries. • Weaknesses: • Only 10% of sales generated internationally. • Criticized by customers for raising interest rates. • Mismanagement of Federal Bailout and management dilemmas. • Threats: • Growth depends on the economic vitality of communities worldwide. • Competitors in the industry such as JP Morgan Chase, Citigroup, and Wells Fargo. • Regulations and policies. • Opportunities: • Increase market share through product development • Increase clients base. • Additional consolidation. SWOT Analysis:

  10. Needed new revenue source. • $5 a month for debit card usage. • Customers became unhappy. • “For a lot of consumers, this was the last straw, banks have been making a lot of changes to accounts, adding fees and raising the minimum balance needed, and consumers were clear that they objected to one more fee.” (Jean Ann Fox) • Got rid of the $5 a month charge for debit cards. • Build its relationship back up with its customers. Key Issue:

  11. Bank of America Case Study

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