Bank Of America Strengths And Weaknesses
Martin Velemir
BSAD 495
Bank of America
SWOT Analysis
9/20/11
THE BANK OF AMERICA’S STRENGTHS
* The Bank of America is one of the world’s largest bank holding corporation in the U.S. by assets, and the second largest bank company by market capitalization. * The Bank of America is the second largest non-oil company in the United States. * The Bank of America is the leading market position in the United States. * The Bank of America has a strong global presence; and possesses a great brand image, superior customer service and high customer satisfaction. * Because of various actions (mergers, joint ventures and acquisitions), the Bank of America has a strong position and presence in the domestic market. * The Bank of America provides …show more content…
a very strong growth in core banking. * Capital management and dividend policy. * The Bank of America provides a diversified range of banking and non-banking financial services and products. * Innovations in products and services give it a major strength in attracting customers.
* The Bank of America provides good services of convenience: online banking, mobile banking, and large retail branch availability. * The Bank of America serves clients in more than 150 countries and has a relationship with 99% of the U.S. Fortune 500 companies and 83% of the Fortune Global 500.
THE BANK OF AMERICA’S WEAKNESSES
* While the Bank of America does have clients in over 150 countries, but only 90% of its national market make their revenue in sales and just 10% internationally. * The Bank of America has weak wholesale banking operations. * The Bank of America has lost the ability to compete head-to-head in an environment where it lacks a size advantage. * The Bank of America has been criticized by its customers for raising their interest rates. * The Bank of America has been experiencing deterioration asset quality, weak geographic asset allocation, and declining net interest margins.
THE BANK OF AMERICA’S OPPORTUNITIES
* The Bank of America has opportunity to increase market share by product development and markets penetration in the domestic markets by
acquisitions. * The Bank of America can increase the amount of clients by expanding globally through joint ventures, acquisitions and mergers. * The Bank of America has the opportunities to offer innovative products and services to its customers. * Due to increasing trend towards internet banking, The Bank of America can introduce online banking to its customers all around the world. * Hispanic banking. * Acquisition opportunity of the Countrywide Financial Corporation. * Additional consolidation in the banking sector. * Increasing customers’ wealth and trend in the direction of the investment after the financial crises from 2007-2010. * Diversification towards the non-banking services. * Additional consolidation in the banking sector.
THE BANK OF AMERICA’S THREATS
* The Bank of America has strong competitors in the banking industry. (JP Morgan Chase, Citigroup, Wells Fargo) * Bad publicity. * Strong competition to sustain its market share due to other competing financial institutes improving their own strategies/policies. * The Bank of America is facing strong political instability and regulation and tariffs in various countries of the world. * New regulations and policies may hinder financial firms’ business forms and could hurt the housing market. * The recent financial economic turmoil and increasing unemployment are threats for the Bank of America. * There are restrictions in capital markets due to security issues and black money issues around the world and are growing in number. * The call for constant hard work to improve risk oversight and governance, particularly at the board level. * The integration of the Bank of America’s competitor: Merrill Lynch.
BSAD 495
Bank of America
SWOT Analysis
9/20/11
THE BANK OF AMERICA’S STRENGTHS
* The Bank of America is one of the world’s largest bank holding corporation in the U.S. by assets, and the second largest bank company by market capitalization. * The Bank of America is the second largest non-oil company in the United States. * The Bank of America is the leading market position in the United States. * The Bank of America has a strong global presence; and possesses a great brand image, superior customer service and high customer satisfaction. * Because of various actions (mergers, joint ventures and acquisitions), the Bank of America has a strong position and presence in the domestic market. * The Bank of America provides …show more content…
a very strong growth in core banking. * Capital management and dividend policy. * The Bank of America provides a diversified range of banking and non-banking financial services and products. * Innovations in products and services give it a major strength in attracting customers.
* The Bank of America provides good services of convenience: online banking, mobile banking, and large retail branch availability. * The Bank of America serves clients in more than 150 countries and has a relationship with 99% of the U.S. Fortune 500 companies and 83% of the Fortune Global 500.
THE BANK OF AMERICA’S WEAKNESSES
* While the Bank of America does have clients in over 150 countries, but only 90% of its national market make their revenue in sales and just 10% internationally. * The Bank of America has weak wholesale banking operations. * The Bank of America has lost the ability to compete head-to-head in an environment where it lacks a size advantage. * The Bank of America has been criticized by its customers for raising their interest rates. * The Bank of America has been experiencing deterioration asset quality, weak geographic asset allocation, and declining net interest margins.
THE BANK OF AMERICA’S OPPORTUNITIES
* The Bank of America has opportunity to increase market share by product development and markets penetration in the domestic markets by
acquisitions. * The Bank of America can increase the amount of clients by expanding globally through joint ventures, acquisitions and mergers. * The Bank of America has the opportunities to offer innovative products and services to its customers. * Due to increasing trend towards internet banking, The Bank of America can introduce online banking to its customers all around the world. * Hispanic banking. * Acquisition opportunity of the Countrywide Financial Corporation. * Additional consolidation in the banking sector. * Increasing customers’ wealth and trend in the direction of the investment after the financial crises from 2007-2010. * Diversification towards the non-banking services. * Additional consolidation in the banking sector.
THE BANK OF AMERICA’S THREATS
* The Bank of America has strong competitors in the banking industry. (JP Morgan Chase, Citigroup, Wells Fargo) * Bad publicity. * Strong competition to sustain its market share due to other competing financial institutes improving their own strategies/policies. * The Bank of America is facing strong political instability and regulation and tariffs in various countries of the world. * New regulations and policies may hinder financial firms’ business forms and could hurt the housing market. * The recent financial economic turmoil and increasing unemployment are threats for the Bank of America. * There are restrictions in capital markets due to security issues and black money issues around the world and are growing in number. * The call for constant hard work to improve risk oversight and governance, particularly at the board level. * The integration of the Bank of America’s competitor: Merrill Lynch.