SWOT Analysis of Bank of America: Key Stats & Overview

About Bank of America

Bank of America, operating in India since 1964, has a long history in the local financial services industry. The bank, which is headquartered in the United States, provides a diverse range of financial services to leading Indian corporations, financial foundations, multinationals, and unfamiliar government entities, including lending, working capital, depository and exchange administrations, unfamiliar trade, and loan fees.

Bank of America is one of the world’s leading financial institutions, providing a comprehensive range of banking, investing, resource management, and other monetary and risk management products and administrations to individuals, small and middle-market businesses, and large partnerships. 

They partner with philanthropies, local legislators, and social groups to improve employment skills, provide affordable housing, and work on financial issues for their neighbours. Their assistance helps them attain more success in their undertakings.

Products/Services of Bank of America

Following are the services and products Bank of America provides to the market –

• Asset management 
• Banking 
• Commodities
• Credit cards
• Equities trading
• Insurance
• Investment management
• Mortgage loans
• Mutual funds
• Private equity
• Risk management
• Wealth management

Competitors of Bank of America

There are a plethora of corporations in the finance industry. The top 5 competitors of Bank of America are as follows –

• JPMorgan Chase
• Wells Fargo
• SunTrust Bank
• PNC
• US Bancorp

Now that we have completed the basics of the company, let us jump into the SWOT Analysis of Bank of America

SWOT Analysis of Bank of America

Let’s get started with the SWOT analysis of the Bank of America and let us check out the strengths of Bank of America.

1. Strengths of Bank of America

Strengths are in the internal factors of an organisation that helps them hold a strong position in the market. Following are some of the few major strengths of Bank of America –

• Worldwide Presence – Bank of America is estimated to have goods and services available in more than 35 countries outside of the United States. In 2020, the firm achieved a profit of almost 3.5 billion dollars from its global loan goods and services.
• Consistent Growth – Aside from a drop in yearly sales and net income in 2020 owing to the covid-19 epidemic, Bank of America has maintained a consistent upward trend for the preceding few years. Customers and investors trust the company because of its consistent growth rate.

• Service & Innovation – Bank of America is one of the most innovative banks since it provides a wide range of goods and services tailored to the demands of its clients. In fact, the firm was named the “Most inventive Bank in North America” by Fortune magazine in 2020. The bank offers a strong service portfolio with clients in more than 150 countries throughout the world. 

2. Weaknesses of Bank of America

Weaknesses are strategic internal factors that are a setback to the company. Following are the weaknesses of Bank of America –

• Lawsuits & Controversies – In 2014, BoA paid a settlement of roughly 16.65 billion dollars for failing to disclose the buyback mortgage cost. In 2009, BoA had to cope with a slew of consumer claim lawsuits alleging that the bank handled transactions in such a way that each client was charged hundreds of dollars in fees. A lawsuit was launched against BoA in 2021, alleging that they had failed to secure thousands of unemployment assistance accounts.
• Low income in nations outside the US – Despite operating in 150 countries across the world, Bank of America produces about 90% of its revenue from operations in the United States of America and just 10% from the rest of the world combined. 
• High-Interest Rates – Many people believe that Bank of America charges exorbitant interest rates that are unjustifiable.

3. Opportunities for Bank of America

An external factor, Opportunities, are chances an organisation needs to capture to continue growing in the industry. Following are the opportunities of Bank of America –

• Acquisitions and Partnerships – In 1998, the Bank of America was formed by the merger and purchase of NationsBank and BankAmerica. Over the years, it has merged with FleetBoston Financial in 2004, MBNA in 2005, The US Trust Company in 2006, LaSalle Bank in 2007, and several more acquisitions and mergers. The bank should continue to merge and acquire in the same manner; this will assist the firm increase its market and impact.
• Credit Card Worth – Credit cards and internet banking are growing in popularity and value among clients. These services are already available through BoA. Now the bank should take it a step further and become more efficient in these areas; this will help the financial firm differentiate itself from its competitors.
• Product and Tech development – Another area where Bank of America may innovate and provide interesting offerings to its clients is product development. It will also be able to strengthen its position at home as a result of this. Internet-based activities, such as internet banking, are on the increase in many developing nations. This gives Bank of America an excellent chance to make its technology and services available to these countries.

4. Threats to Bank of America

Threats are external elements that pose as a disadvantage for an organisation. Following are the threats to Bank of America –

• Breach of Security – In April 2020, there was a security breach at BoA, which exposed information from the bank’s Paycheck Protection Program. It’s not the first time the bank’s database has been hacked. Customers have had access to online and internet banking services since BoA began offering them. The corporation has become increasingly susceptible to cyber-attacks. It portrays the firm as vulnerable and unstable.

• Changing global financial situation – The global financial scenario is kept together by thin threads, which, as we have seen in the past, poses a constant threat to individuals in the banking and financial services industries.

With this, we come to the end of the SWOT Analysis of Bank of America. Let’s briefly conclude this case study in the section below.

Conclusion

Bank of America has been globally leading with their strong suits of consistent business growth and innovation with services and products. They have a strong presence in the market, however, they have to work on reducing the number of lawsuits and high-interest rates. They can tap into various markets by smartly partnering with companies and contributing to greater technological services.

Furthermore, Bank of America should work on improving its existing online presence in order to engage with consumers and keep them informed about new services and products. To grow their business, they employ digital marketing tactics such as SEO, SMM, content marketing, media campaigns, and others.

Working in marketing for a successful company such as Bank of America is possible, but it takes knowledge of the Digital Marketing business. Short-term certification courses in a range of digital skills and expertise are available via IIDE, and you may come up to speed in as little as five days. 

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