SWOT Analysis of Bank of America [Detailed]

SWOT Analysis of Bank of America focuses on strengths, limitations, opportunities, and Threats. Bank of America is one of the largest private sector banks in the world. The strengths and weaknesses of Bank of America Swot are internal factors, while opportunities and risks are external factors.

SWOT Analysis is a validated management tool that enables a bank like Bank of America to measure its business & performance with competitors and the industry.

Bank of America is an American Bank engaged in providing services related to investment Banking, financial services and international banking services.

The bank is centrally managed from London, Dallas, New York, and Toronto. Bank of America was formed in the year 1998 by acquiring NationsBank. By market capitalization, Bank of America is the second-biggest bank in America after J. P. Morgan Chase and the biggest in terms of bank shares.

The bank is very famous for its high-quality banking services. Bank has 4,600 retail branches and has around 16200 ATMs. Bank has total assets of 2.434 trillion US Dollars in the year 2019.

swot analysis of bank of america

Let us discuss SWOT Analysis of Bank of America

Strengths in the SWOT Analysis of Bank of America – Bank of America SWOT Analysis

  • The bank is located in around 40 countries and has a huge customer base of 46 million customers. Bank of America is serving about half of the Fortune 500 firms in the United States and approximately 83% of the Fortune Global 500. Bank has a net income of 27.43 billion US Dollars in the year 2019.
  • Bank of America is a well-structured organization and has acquired many Banks. In 2008, Merrill Lynch was acquired by Bank of America in the year 2008. By acquiring Merrill Lynch Bank of America has become the largest wealth management organization in the world.
  • Bank of America also deals in Small Business Banking and Global customers. The bank also has a significant footprint in commercial banking and credit card issuance.
  • Employees are the key strength of the Bank. Bank of America has approximately 208000 employees. The bank is spending a lot of money on their training and development.
  • Bank of America has a broad array of products and services.
  • Decent penetration in 40 countries areas has boosted the industry.
  • Great online services provided by Bank of America, such as net banking, investment services, etc.
  • Effective ads and branding have helped the Bank to expand.
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Weaknesses in the SWOT Analysis of Bank of America – Bank of America SWOT Analysis

  • WikiLeaks Controversy of 2010 and 2011 has ruined the brand image of Bank of America. WikiLeaks reported that it had ample proofs of malpractices of Bank of America. As a consequence, the trust that people had in the brand went down and their stock price has fallen down.
  • Low revenue from countries other than the United States. Despite operating in 40 countries worldwide, Bank of America derives approximately 90% of its revenue from activities within the United States of America and about 10% from all other countries added together. Customers say that that Bank of America charges very high.
  • Bank has its operations in many countries and it is very difficult to manage data of the customers. Allegations in other countries are very difficult to manage.

Opportunities in the SWOT Analysis of Bank of America – Bank of America SWOT Analysis

  • Bank of America has a massive footprint all over the globe now. This can be put into efforts outside the USA and can grow their business. The brand name has been marginally reduced by controversies in the USA, so banks can try to expand their business in emerging economies.
  • Bank of America can acquire banks to expand its business.
  • Many developed countries are experiencing a spike in internet-based operations, including internet banking. This provides Bank of America with a strong opportunity to make the innovations and services accessible to these nations.
  • Product development is another field in which Bank of America can evolve and give its consumers enticing deals. This will also help it improve its income sources.
  • Strategic Partnership: Bank must do a partnership with Amazon and other online retail services to promote the use of their Cards. These Online Retailers can offer an extra discount to Bank of America Customers.
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Threats in the SWOT Analysis of Bank of America – Bank of America SWOT Analysis

  • The global financial situation is kept together by thin strings and, as we have seen in the past, there is a challenge to those in the banking and financial services sectors.
  • Bank of America has many major rivals, such as J. P. Morgan, Citi Bank, and Wells Fargo. Services Provided by the competitors is a major threat to the bank.
  • Data Theft is also a Threat to the bank. Bank has to do something for cybersecurity.
  • Government Rules and Regulations in many nations are changing day by day for banks. This can be a major threat to Bank of America.

Reference:

  • https://all-stocks.net/bank-of-america-explores-ripples-blockchain-technology-for-its-banking-system/
  • http://www.dialogoaa.com.ar/history1.html
  • https://www.bankofamerica.com/
  • https://in.reuters.com/article/idINIndia-42711220090925
  • http://dictionary.sensagent.com/Bank%20of%20America/en-en/
  • https://www.businesswire.com/news/home/20150715005297/en/Bank-America-Reports-Second-quarter-2015-Net-Income
  • https://www.fool.com/investing/2017/12/05/the-30-largest-companies-on-the-stock-market.aspx
  • https://www.paperdue.com/topic/bank-of-america-essays
  • https://prepaid.bankofamerica.com/bulkrewardcard/Program/FAQ
  • https://wikieducator.org/Thread:User_talk:Pmanghirmalani/Characteristics_of_Education
  • https://timesofindia.indiatimes.com/blogs/the-interviews-blog/the-right-to-information-has-been-recognised-as-a-fundamental-right-a-powerful-rti-movement-must-checkmate-government/

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"SWOT Analysis of Bank of America [Detailed]." Projects4MBA [Online]. Available: https://www.projects4mba.com/swot-analysis-of-bank-of-america/4959/. [Accessed: January 27, 2021]
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