Bank Of America Essay

2133 words - 9 pages

Bank of America

3/12/12

History of the company:
The bank of America has become one the most well known banks in the world. In fact this success is due to it several historical merges, especially with the bank of Italy, founded by Amadeo Giannini in San Francisco in 1904. The founder and president of Bank of America agreed to the merging on 1929. It operated under the name Bank of America, and in 1958 the bank harnessed the technology that lets credit cars to be linked directly to bank accounts by introducing bankamericard, and this was the progenitor of VISA. Bank of America first expanded to the borders of California with its acquisition of Seattle-based Seafirst Corporation in ...view middle of the document...

She closed her Bank of America account, cutting up her debit card on camera, and moved her money to a community bank. Plus, the Progressive Change Campaign Committee said it got more than 51,000 people to pledge to take their money out of major financial institutions, with 21,500 consumers planning to remove their money from Bank of America specifically. Americans flooded her with support. One month and 306,000 signatures later, she won Bank of America removed the charge on November 1, 2011.
Comentario [RN4]: An excellent example of how customer pressure can cause major image issues, as well as impact on profitability.

Bank of America Internal Issues
We all know that it is difficult for a bank to make money through debit cards, the only way they have is to charge their clients a fee for having one or the fee charged to a shop for making a transaction with a debit card. With the new Dodd-Frank financial reform, that will lower “interchange fees” (which is the amount banks can charge retailers for debit transactions), banks need a new way to make money with debit cards. So far the only solution Bank of America found was to increase by 5$ the monthly fee for debit cards holders. This is not a common thing in the USA, before that decision less than 2% of debit cards holders were paying such fees. Many mistakes have been made during the decision process and we are going to explain the ones that were made internally.
Comentario [RN5]: Good description of the issue

If proper research would have being conducted with their clients (which are the first ones to be affected by this decision), Bank of America would have seen that it was a bad idea and that many clients would change to another bank with no such fees. Instead they made it mandatory

and said that if you do not want to be affected by this then upgrade to premium (which need higher income)
Comentario [RN6]: Poor research and understanding of their client base.

Bad customer relationship, during a financial crisis a bank is often blamed for what ever is going on. It is really important in such times to maintain a good customer relationship. But Bank of America has always been seen has a bank that thinks about profits before its customers and it is really hard for them to change image with such crisis. Banks need to change their customer relationship; they should offer help to both their weaker customer and their best and not only their best customers. When a customer is in trouble they should offer then several solutions before getting their valuables.
Comentario [RN8]: I don't understand Comentario [RN7]: Good point

Bad strategy, bank of America strategy wanted to become the dominant bank in nearly every category of American finance, from mortgages and home-equity loans to commercial lending and wealth management. Bank of America was actually everywhere and nowhere at the same time. Their operations and divisions were so broad that they could not manage it well anymore.
...

Other Papers Like Bank Of America

Case Study: Bank of America

834 words - 4 pages Case Study: Bank Of America  How it learned that what customers really want is to Keep the Change  THE PROBLEM  Innovation in services is rare. In financial services, the last big breakthrough was online banking, nearly a decade ago. In October, 2005, Bank of America (BAC ) brought out a radically different product that broke the paradigm. It's called Keep the Change.The cocept solves a critical banking problem -- how to get consumers to

Case Analysis Of Bank Of America: Mobile Banking

1193 words - 5 pages International Management II (Core Competencies) Case Study Bank of America (A) by Alexander Beil Christoph Hillgärtner Florian Schlegelmilch Harvard Case Study: Bank of America List of Contents 1. Introduction / Definitions 2. Overview “Bank of America” 3. Product development processes 4. Strength and weaknesses of the systems 5. Learning through experimentation 6. Conclusion / Learnings 7

Bank of America

1319 words - 6 pages 1) *** w08 15/7 pág. 27 Puntos sobresalientes de las cartas a los Corintios *** 2:16. Tener “la mente de Cristo” significa conocer bien su forma de razonar, pensar como él, comprender todos los rasgos de su personalidad e imitar su ejemplo (1 Ped. 2:21; 4:1). Para lograrlo, es esencial estudiar a fondo su vida y ministerio. 2) *** w08 15/7 pág. 27 Puntos sobresalientes de las cartas a los Corintios *** 6:18. Para “[huir] de la fornicación”, no

Standard Bank Strategy in Latin America

4486 words - 18 pages   INTERNATIONAL SCHOOL OF  MANAGEMENT        Ph.D. Professional Assessment  Evaluation I    Standard Bank´s expansion strategy  in Latin America          Andrea Valenzuela Rivas    Abstract  After the 2008 crisis, Standard Bank needed a strategy to continue  with  its  grow  being  truthful  to  their  emerging  market  presence  vision.  This  paper  analyzes  the  opportunity  for  the  bank  in  a  developing region, Latin America

Evaluation and Structure of Commercial Bank in India

2391 words - 10 pages |23 |22 |3 |0.28 | |Bank International Indonesia |1 |74 |11 |20 |1.81 |10.49 | |Bank of America |5 |1437 |1993 |3219 |257 |0.00 | |Bank of Bahrain & Kuwait |2 |67

Corporate Citizenship

4754 words - 20 pages Bank of America: Analyzing Corporate Citizenship In the words of Thomas Friedman, “If you don't visit the bad neighborhoods, the bad neighborhoods are going to visit you.” With “bad neighborhoods” symbolizing customers, this portrays a direct consequence of what can happen if a company does not take into account the impacts of its business decisions. As society progresses through the 21st century, it is clear that the people along with the

Comprehensive Case

1029 words - 5 pages Case Studies in Management MGMT 0475 10/20/12 Bank of America Corporation Cohesion Case Harris-Stowe State University Bank of America Corporation has been one of the leading banking companies in the United states with over 5,800 banking locations and another 300 abroad. One of the reasons that they are leading the front is because of the IT system that they have implemented. BoA has

Banking

574 words - 3 pages assignment. At the end of each day, be sure to save your progress. Review Lesson 4 of the Course Overview for instructions about turning in your assignments. Assignment Questions 1. Visit the website of a large national bank, regional bank, or credit union, and use the information you find there to answer the questions below. EXAMPLE: Some large banks you might consider include Bank of America®, JPMorgan Chase®, Wells Fargo®, Citibank®, and

Bitter Gourd

2289 words - 10 pages Bank of Communications (PBCom) * Standard Chartered Bank * The Bank of Tokyo-Mitsubishi UFJ, Ltd. * Philippine Veterans Bank (Veterans Bank; PVB) * Robinsons Bank * Deutsche Bank * ANZ * JPMorgan Chase * Mizuho Bank, Ltd. Manila Branch * ING Group N.V. * BDO Private Bank (subsidiary of BDO Unibank) * CTBC Bank (Chinatrust) * Bank of China Manila Branch * Bank of America, N.A. * Mega

Open Interpretation to the Constitution Leads to First National Bank

1345 words - 6 pages Open Interpretation to the Constitution Leads to First National Bank A National Bank is an essential part of this nation's economy. We know that it can further strengthen the ties between Americans and the federal government. The National Bank has allowed America to grow its economy, unit as country, and improve trade between the colonies. But when the first National Bank plan entered into Congress there was much controversy over it. Two

External And Internal Envirnments

2747 words - 11 pages Running head: BANK OF AMERICA EXTERNAL ENVIRONMENTS Bank of America – External Environments Alan Bahadori Professor Turner Strayer University April 29th 2016 Bank of America – External Environments Bank of America is an industry leader in the financial and banking marketplace. They are a multinational corporation that is the second largest bank holding company in the United States by assets. The extent of Bank of Americas

Related Essays

Bank Of America Essay

1600 words - 7 pages advantage is that it would step ahead of its competitors in providing customized solution for each market listed above. In turn, it will increase customer satisfaction and that would lead to expand its current market in each segment. This will result in increasing mobile banking by integrating BOA’s business line spreading its platform to increase more market coverage.... 2. Case Analysis of Bank of America: Mobile Banking Case Analysis of Bank of

Bank Of America Essay

534 words - 3 pages Sample Homework: Bank of America Case Assignment: 1. What are the core business processes[1] (high level; major business and financial services) performed at Bank of America as part of its product and service offerings? |Core Bank of America Business Process: |Activities within the Core Process | |people management

Bank Of America Case Essay

1302 words - 6 pages Problem Statement Bank of America is struggling to position their mobile banking service in the continuously changing industry. The bank already has a mobile application but is evaluating if they should add more features to this app and how this will affect their clients. Situation Analysis Company • Bank of America is the largest U.S. bank holding company; it was founded in 1904 and expanded with several acquisitions. • By the end of

Bank Of America Debit Fee Essay

2731 words - 11 pages OL500: Final Project Milestone # 3 Bank of America tries to charge debit card fees Introduction: The main purpose of the case study is to demonstrate organizational studies, organizational theories, and organizational behavior of Bank of America trying to charge $5 debit card fees. The case study will implant the systematic study and careful application of knowledge about how people –as individuals and as group will act upon this issue