Background Information
History of the Company
Bank of America is one of the oldest and largest banks in the United States. With its home office in Charlotte, North Carolina, Bank of America is the third-largest commercial bank in terms of assets. Additionally, the bank originated under the Bank of Massachusetts which was founded in 1784. This makes the Bank of America the second oldest bank in the United States (Bank of America, 2006). Despite what appears to be a rich history for the organization, Bank of America does not have a clear and concise history of its development posted on its web site. For this reason information about the Bank's history must be gleaned from secondary sources.Critically reviewing what has been written about the Bank of America it becomes evident that while the organization can trace its roots back to the Bank of Massachusetts, the organization did not become a formidable financial institution in the United States until the early twentieth century. By 1906 Amadeo Giannini had established the Bank of Italy, which became a significant lender for individuals that had been impacted by the 1906 earthquake that had taken place in San Francisco. As a result of the business acquired by the Bank of Italy during this time period this organization became one of the leading financial institutions in San Francisco.
[...] Thomke (2003) notes that, the twenty-first century dawned, Bank of America faced a new challenge: With the opportunities for further acquisitions narrowing, it would need to find ways to grow organically, to expand its existing business by attracting more customers and fulfilling a greater share of their banking needs” (p. 70). In order to meet these needs, Bank of America has spent the last three decades it evolved into service development program modeled after the traditional product development programs utilized in manufacturing organizations. [...]
[...] Further, the current implementation of Six Sigma at Bank of America demonstrates that technological innovation can also be utilized to increase the overall profitability and efficiency of the organization. These issues are also critical for the overall success of the banking/financial services institution. Reduction of internal costs and increasing the efficiency of the organization will become even more important as competition in this industry intensifies. Customer Technology Adoption Profile Considering the specific technological implements that Bank of America has adopted in an effort to improve customer relations in the organization, researchers note that CRM or customer relations management systems have been instituted in the organization. [...]
[...] Distinctive Competencies Mogel (2002) in his analysis of bank of America notes that the organization has seven specific areas in which it operates. These include: Consumer Products Bank of America has 4,500 banking centers ATMs million online customers, and holds more than 400,000 mortgages. Asset Management The bank has almost $300 billion of assets under management and runs mutual funds with more than $100 billion in assets. Card and Payment Services The bank is a major player in the credit and debit card business. [...]
[...] Banking services are the primary function of Bank of America and Wachovia. Investment Banking Services Some banking services organizations have focused primarily on the development of investment banking at retail corporate and financial services. These organizations include Citigroup and J.P. Morgan Chase. Mortgage Services Some banking services organizations have focused specifically on the development of mortgage services for customers. Wells Fargo is one of these organizations. Industry Structure for Bank of America Critically reviewing what has been written about the industry structure for Bank of America, it becomes evident that there are a number of features that comprise the overall structure for the Bank of America. [...]
[...] In the years that followed the merger, Giannini used the significant capital of the Bank of America to expand its operations throughout the United States. Under the holding company of Transamerica, Bank of America also entered the insurance agency. However, these organizations were forced to separate in 1956 with the passage of the Bank Holding Company Act, which prevented bank owners from holding interests in non-banking subsidiaries. The Bank Holding Company Act also prohibited the practice of interstate banking which forced Bank of America to liquidate the period banks that it owed outside of California. [...]
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