Swot Analysis Of Bank Of America Bank
BOA is one of the largest financial institutions in the world; which offers them many opportunities for growth. The bank has a robust brand image in its global market, which is reflected through various awards being conferred on it for its strong and quality operations. For instance, in January 2015, the bank was named as a 2015 Military-friendly Employer by G.I. Jobs magazine, and Bank of America Merrill Lynch was recognized as Structured Products House of the Year (Risk magazine, 2015). Bank of America has been honored both globally and regionally with eight industry awards for transaction banking innovation and excellence by Treasury Management International. Also, Bank of America was …show more content…
BOA is one of the world 's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. As of December 2015, the bank served more than 48 million consumer and small business relationships in about 40 countries through a network of its 4,800 banking centers and 15,800 ATMs. Additionally, it has strong network of online banking with 31 million active users and about 17 million mobile users. Such a strong network provides the bank with a competitive edge advantage while catering to diversified customer …show more content…
BOA was culpable both through its own actions and those of two troubled companies it acquired in 2008: Countrywide Financial and Merrill Lynch. Overall, Bank of America said it now estimates it could have to spend up to $6.1 billion for legal expenses over and above current reserves, up from an estimate of $3.1 billion a year ago.
Consumer credit controversy
There has been some negative publicity related to some of the mortgage transactions bank of America and its affiliates were accused of enrolling many of consumers that ended in foreclosures. Also Bank of America received tremendous backlash from customer overdraft fees and repayment practices surrounding the fees; this resulted in a class action lawsuit that was later settled.
Overdependence on the US
The bank’s dependence on the US for its revenues may affect its business operations, if the region experiences any political and economic change. Although the bank has its presence in Asia, EMEA and Latin America and the Caribbean, it generates major portion of its revenues from the US. It generated 86.8% of its total revenues from the US in 2015. Overdependence on the US increases the business risks of the bank.
Internal Factor Evaluation
Internal Strengths Weight Rating Weighted Score
Market recognition 30% 4 1.2 1 = major