The Bank of America opened its doors ready for business in 1784 under the name Massachusetts Bank that changed latter to Bank of America in 1998 creating the first coast-to-coast banking franchise. The headquarters of Bank of America is today in Charlotte, North Carolina. The total asset of this bank is more than $2.5 billion. Bank of America is ranked position two in the United States regarding the number of workers (James, & James, 2003). As at 2016, the Bank of America was declared as the largest wealth management all over the world. Currently, this bank is serving more than 6,000 banking centers and exceeding 18,000 ATM’s lobbies serving its clients in more than 150 countries.
Bank of America provides many products and services to its customers. Its services and products are geared toward owners of small-scale businesses. Some of its services include; remote deposits, health saving accounts, bill paying services, retirement accounts and those using Smartphone, the bank have apps that help them to transact (James, & James, 2003). In addition, the Bank of America rewards its customers by giving them groceries from grocery stores and provides them with loans and mortgages.
The mission of Bank of America is to provide the leading investment services and products by ensuring sustainable practices for the long haul, offer income to the society, offer low and moderate services, and improve the welfare of families and individuals by giving them benefits and finally, to serve clients with courtesy and efficiency. The Bank of America has come up with a new strategy that has been considered as “breath of fresh air.” This bank has been working hard to ensure it crosses-sell its products for some years now.
Bank of America has been using Wells Fargo to reach its customers in remote areas and to those who need bank’s services and products at their premises. Well, Fargo has been pushing banks services to the targeted customers and groups. Now the bank has taken a different direction, targeting its clients by providing VIP perks to a significant number of its clients than its competitors. The Bank of America is seen to target mass affluent that signifies the end of mass banking market; this means that clients have more than $100000 or incomes exceeding $ 75,000 per annum (Lynch, 2014). In order to win this group, the bank is initiating “platinum privileges” to a wider range of people.
The Bank of America has a divisional corporate hierarchy. This type of authority is essential in different service section such as commercial, retail, management and investing section. According to this kind of organizational hierarchy, the large sections of the bank are divided into semi-autonomous bodies. These small sections are governed by a particular field of services where they are headed by vice president or an executive officer who are responsible only for managing general functions such as budgeting and hiring on behalf of that particular section only. Divisional organizational hierarchy helps the Bank of America to increase productivity because each section performs well under each functional group headed by the executive.
Following are the executive designation found in the Bank of America: chief executive; they manage and overseas all the major officers. Global technology and operations executives: responsible for delivering good operational and advance technology into the bank. Co- chief operating office; manages activities that serve the client with services such as home mortgage and cards. Global strategy and marketing officer: manage public policies (Lynch, 2014). Global head of human resources: responsible for recruiting and training employee Chief risk officer; identifies risks related to market and operations.
The short term goals of Bank of America includes reform of financial sector such as enhancing prudential supervision of all institutions under the Bank and developing market instruments to help in the reallocation of long-term financial resources. In addition, the bank of America is introducing compulsory pension schemes to all people. Bank of America has been trying to reach a wide range of customer by expanding its stocks and reducing its services costs (Lynch, 2014). The bank’s long-term goal is to be the leading bank in rendering services and spreading its branches all over the world.
In order to improve strategy, mission, and organizational strategy, Bank of America, should work to get its services to where customers are and ease banking system as it should not be time-consuming and difficult. Clients need information about the bank; both choices and implications. Bank of America should be well strategized in order to look for new ways to make services better.
James, M., & James, B. R. (2003). Biography Of A Bank: The Story Of Bank Of America NT & SA. Harper.
Lynch, M. (2014). Bank Of America. The Silver Dollar–Longevity Revolution Primer.