SWOT Analysis Of Bank Of America analyzes, Bank of America is the world’s leading financial institution that not only serves individual customers but small, middle-market businesses and larger corporations providing a whole range of banking facilities and other management products and services. It basically provides its assistance in the United States by helping 66 million buyers and businesses. They have almost 4,300 finance centers and approximately 16,500 ATM machines installed. Its digital banking system is superb with 29 million mobile users.
Did you know?
Bank of America is one of the top mortgage producers in the United States. In fact, the bank holds the No. 2 market share for retail mortgage origination volume, and it’s the No. 1 home equity lender in the country.
The history of Bank of America can be traced back to 1904, when it was known as Bank of Italy. At that time, the feature which distinguished the Bank of Italy from other American banks was that it offered financial services to immigrants arriving in the United States, not only the wealthiest American citizens. Today, the bank is a national giant, one of the most valuable banking brands and one of the leading banks in terms of assets or market capitalization globally. As of 2020, Bank of America was the fourth largest employer in the banking sector in the United States, with employment figure exceeding 140,000 people.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Bank Of America.
Bank Of America At A Glance – Bank Of America SWOT Analysis
Company: Bank of America Corporation
Founders: Amadeo Peter Giannini
Year of establishment: 1998
CEO: Brian Moynihan
Headquarters: Charlotte, North Carolina, United States
Employees (Dec 2020): 2,00,000
Ticker Symbol: BAC
Type: Public
Annual Revenue (Dec 2020): US$88.5 Billion
Profit net income (Dec 2020): US$7.7 Billion
Products & Services: Loans | Credit, savings accounts | Checking accounts | Savings | Credit Cards | Home Loans | Auto Loans | Small Business | Student Banking |
Company Website: www.bankofamerica.com
Top Bank Of America Competitors
Competitors: JPMorgan Chase | BBVA | Rabobank | Wells Fargo | Citigroup | American Express | Banco Santander | Wells Fargo | Citi | Morgan Stanley | Goldman Sachs | BNP Paribas | UBS | Visa | First Foundation
Bank Of America SWOT Analysis – SWOT Analysis Of Bank Of America
SWOT Analysis Of Bank Of America analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Bank Of America SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Bank Of America SWOT Analysis. Below Is The Detailed SWOT Analysis Of Bank Of America.
Bank Of America Strengths – Bank Of America SWOT Analysis
- A strong distribution network – Through the years, Bank of America has built an effective distribution system which can cover the vast the majority of its potential customers.
- Automation of processes made it possible to maintain consistency of quality in Bank of America products and allowed the company to grow and reduce its size based on the demands of the market.
- High Returns on Capital Investment Good Returns on Capital Expenditure Bank of America is relatively adept at executing new initiatives and has generated excellent returns on capital expenditure through developing additional revenue sources.
- Reliable suppliers It has a solid base of reliable suppliers of raw materials, allowing the company to get around any bottlenecks in the supply chain.
- Highly skilled workforce, thanks to effective educational and learning programmes. Bank of America is investing enormous resources into the developing and training its employees, resulting in employees who are not only skilled but also driven to do more.
- A strong free cash flow Bank of America has strong free cash flows , which provide funds to the company to invest in new ventures.
- Very successful in the Go to Market methods in its merchandise.
- Proven track record of creating innovative products and services.
Bank Of America Weaknesses – Bank Of America SWOT Analysis
- The company is not capable of tackling the issues that are being faced by new competitors in the market and has also lost a small market share in small-scale categories. Bank of America has to create an internal feedback system that receives direct input from sales staff on the ground to overcome these obstacles.
- Days inventory is very high compared to other companies – requiring the business need to raise capital to invest into the channel. This can affect the long-term growth of Bank of America
- There are some gaps in the range of products that the company offers. The lack of variety could provide a competitor with a position on the market.
- The financial planning process isn’t executed properly and effectively. The current ratio of assets and ratio of liquid assets suggest that the company could use the cash more effectively than it does in the present.
- The company has had limited success outside its the core business. Bank of America is one of the top companies in its field, it has encountered challenges transitioning to different product segments within its current business model.
- The ratio of profitability and Net Contribution percentage for Bank of America are below the industry standard.
- More investment is needed in new technologies. With the size of the expansion and the various geographies that the company plans for expansion into Bank of America needs to invest more money into technology that will allow for the integration of processes across all departments. At present, the investment in technology is not on level with the goals of the company.
Bank Of America Opportunities – Bank Of America SWOT Analysis
- The growth in the market will result in the dilution of the advantage of competitors and allow Bank of America to increase its competitiveness in comparison to other competitors.
- A steady flow of cash provides the possibility of investing in related product segments. With more cash in the bank, the company is able to invest in the latest technologies, as well as new product categories. This will open a door of potential in the future for Bank of America in other product segments.
- Recent trends in consumer’s behavior could open up a an entirely new market for Bank of America . It is a wonderful chance for the bank to create new revenue streams , and broaden its product offerings, too.
- New markets are opening up through government agreements – the introduction of new technology standards and a government-sponsored free trade agreements has given Bank of America an opportunity to be a part of a new market.
- New customers are coming from the online channels – In the last few years, the bank has invested a huge amount of money in the online platform. This investment has led to the opening of a new sales channels that is available to Bank of America. In the coming years Bank of America can capitalize on this opportunity by understanding the customer better and addressing their needs through massive data-driven analytics.
- Environmental policies that are new – These opportunities will result in an equal play field that is open to all players in the field. This presents a huge possibility to Bank of America to drive forward its advantages in the field of the latest technology and increase shares in the latest product segment.
- Organization’s core competencies could be an advantage in other product areas. An example of this could be the case of GE health research assisted it in the development of better oil drilling equipment.
- Lowering the cost of transportation as a result of lower shipping prices could lower the cost that Bank of America’s products , giving the company to increase its profits or to pass the savings to its customers to gain market share.
Bank Of America Threats – Bank Of America SWOT Analysis
- The latest technologies developed by the company’s competitor, or disruptor to the market could pose a major risk to the industry in the near to medium-term future.
- The shortage of skilled workers in certain global markets is an obstacle to the an increase in profits that is steady at Bank of America in those markets.
- The company could be sued in a variety of markets, due to the different laws and constant fluctuations about the standards for products in these markets.
- Stable profit has led to an increase in the number of companies in the industry over the these two years. This has put pressure on profitability, not just but also overall sales.
- Impersonation of counterfeit products and inferior product poses a risk to the Bank of American product particularly in the emerging markets and the low income markets.
- The rising pay rate, particularly movements like $15 an hour, and rising prices in China could put severe impact on the performance for Bank of America
- Because the company is operating in a variety of countries, it is subject to fluctuations in currency, especially due to the uncertain political climate of a many markets around the globe.
- The rising cost of raw materials could pose an issue for Bank of America profitability.
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Bank Of America SWOT Analysis Overview Template
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