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.
 Products: Depository Services, Real estate loans, Loans
to individuals, Commercial loans.
 Activities: Receiving deposits from customers and
issuing consumer, commercial, and industrial loans.
The Market:
 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.
Industry Growth Rate in U.S.
Citigroup Inc.
JPMorgan Chase &
Wells Fargo
Industry Trends:
 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
Company History:
 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 Overview:
SWOT Analysis:
 Strengths:
 Leading market position in
the US.
 Online and mobile banking
 Serves one in two
households in the U.S. and
operate in more than 40
 Opportunities:
 Increase market share
through product
 Increase clients base.
 Additional consolidation.
 Weaknesses:
 Only 10% of sales generated
 Criticized by customers for raising
interest rates.
 Mismanagement of Federal Bailout and
management dilemmas.
 Threats:
 Growth depends on the economic
vitality of communities
 Competitors in the industry such
as JP Morgan Chase, Citigroup,
and Wells Fargo.
 Regulations and policies.
Key Issue:
 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.
Bank of America Case