October 10, 2011
Bank of America Strategic Initiatives
Bank of America Corporation is one of the world’s largest financial institutions. The bank serves individual consumers, small businesses, and large corporations. Bank of America offers a range of banking, investing, asset management, and other financial products and services. The corporation operates primarily in the US, Latin America, Europe, and Canada (Bank of America, 2010). This bank provides convenience in the United States and serves more than 55 million consumer and small businesses (Bank of America, 2010). Bank of America has more than 5,700 retail banking offices, nearly 17,000 a.t.m.’s and online banking with more than 20 million active users (Bank of America, 2005). Bank of America has set forth some environmental strategies to help the company to survive and be successful. The corporation is involved in more than just banking. Bank of America believes in helping the environment. One of the ways they help address climate change is through their lending practices and Commercial Real Estate Banking services (Bank of America, 2011). Bank of America applies these resources as part of their business strategy in hopes of stimulating environmentally sound, profitable innovations that lead to economic growth, new job creation, and new markets (Bank of America, 2011). Bank of America tries to match their investments to the distinct needs of each of their clients. The corporation is focused on strategic investments in businesses and technologies that address climate change, such as developing low-carbon technologies and alternative energy companies (Bank of America, 2011). Bank of America has invested in companies that they believe can capture energy from the sun or from the rise and falls of ocean waves and converts that energy into electric power (Bank of America, 2011). The bank also uses its investments to help preserve forests. Bank of America has adopted initiatives to develop financial products and services for their customers who consider the environmental impact of their purchasing decisions, and who want to offset or minimize their carbon footprint (Bank of America, 2011). Initiatives such as these help the company to compete with other banks and offer its clients something different and unique. BOA is also making the switch to paperless in an attempt to help the environment and save money. BOA’s online banking makes it convenient for their customers while remaining environmentally friendly. Bank of America has launched internal programs with aggressive targets aimed at reducing their own greenhouse gas emissions and cutting their consumption and waste in several of their buildings (Bank of America, 2011). They are developing environmentally responsible real estate by developing environmentally friendly workplace designs. Bank of America’s environmentally advanced facilities have a positive effect on the planet. It also motivates their associates' while increasing productivity and morale. Recent economic trends are causing Bank of America some serious problems. They stand to lose an estimated $35 billion from put backs by insurers and private investors in mortgage-backed securities (Michael Shedlock, 2011) A drop in consumer income has been a major contributing factor to the banks losses in 2011 ( Market Minute). According to Bank of America’s corporate site, they have managed to regain their momentum by making some changes in areas of their banking experiencing deficits from the shaky economy (Rachelle Nevills, 2011). They made changes to their mortgage practices in order to help homeowners, extended millions of commercial real estate loans, and were successful with their focus on new customers. The bank tried to keep existing customers during the recession. They are trying to gain new customers now that the economy is looking better. They are offering loan modifications and making home...