Bank of America is one of the largest banks in the US by assets (along with JPMorgan Chase and Citigroup). In 2008, the United States was faced by what is considered by far to be the worst global financial crisis. This economic downturn will result in the collapse of giant financial institutions, hurting in its passage the US economic. Bank of America will suffer the same fate as its financial counterparts due to the size of its business. The ones, who survived through this predictable crisis, will be those who will continuously innovate and market strategically.
Band of America Key Problems and Opportunities
Decline in profit caused by the bank credit freeze: This problem affected BofA because it is a large financial institution. When credits are frozen as a bank, activities will be subsequently affected forcing giant institutions to drastically downsize in order to muddle through the issue. In addition, the decline in BofA customers caused by the fact that customers and business are spending less and less compare to 2006 will push the bank to think more customer orientation.
These problems have created panic for many firms from 2008 to 2009. However, opportunities are created when the door to problems opens up. Some opportunities were to focus on reducing or eliminating monthly service fees in order to attract more customers. As a consumer, one major benefit I am constantly looking for is convenience, usability and affordability of services. Credits unions offers low to no monthly services on basic banking services such as checking and saving. In addition, increasing the accessibility to teller was also one possibility and access to more ATM’s without fees or with competitive fees.
From this problem, innovation can be one of the best choices out there. Increasing customer reach by providing service that no other offers or by adding niche segments to existing products. Businesses are moving more and...