Memo: BANK OF AMERICA
Bank of America (BoA) is, undoubtedly, one of the leading and largest global financial institutions. It provides its services to institutional investors, individual consumers, governments, large corporations, and small and middle-market consumers (MarketLine Report 4). Products and services delivered by the Bank of America include investment advice, banking, asset management, financial services, and risk management. Primarily, Bank of America operates in Asia Pacific, Americas, Europe, Africa, and the Middle East.
Bank of America is known for delivering a wide range of services in six different business segments. These business segments are the consumer and business banking (CBB), global wealth and investment management (GWIM), global banking, consumer real estate services (CRES), global markets, and all other segments (MarketLine Report 5). The CRES segment provides products and services to consumers in the real estate market. Some of the products in this segment include home equity loans, HELOC, and adjustable-rate first-lien mortgage loans to home purchasers and for clients wishing to refinance their loans. The global markets segments proves sales and trading services in securities and derivative products to institutional and commercial clients. The global banking segments deals with a range of lending-related services and products, treasury solutions, integrate working capital management, and advisory services. On the other hand, the GWIM segment specializes in the provision of wealth management solutions such as brokerage and investment services, specialty asset management, and fiduciary management to a wide clientele base (MarketLine Report 5). Equally, the global markets segment provides sales and trading to institutional clients across currency, credit, fixed income, and equity businesses. The product coverage in this segment include derivative products and securities in the secondary and primary markets. Finally, the all other segment of Bank of America consists of equity investments, ALM activities, liquidating businesses, and other business operations of BoA.
Mission and vision statement
Bank of America’s mission defines the company’s marketing niche by putting emphasis on the employees in relation to a defined market (Bank of America). The mission statement states the company’s purpose of offering investment and lending products that target a specified market. The targeted market specified in the mission include low-and moderate-income families, individuals, and communities. The mission statement also mentions the need of creating a sustainable practice in the end. The mission statement clearly specifies the purpose of the company in relation to improving the financial lives of those individuals that conduct business with the company (Bank of America).
Further examination of the mission statement helps to expand the focus of the company from the service and business perspective. With the idea that the company is concerned with the improvement of the financial goals of its clients, it is clear that institutional investors, people, and companies are the most important customer groups for the company (Bank of America). In terms of the people, Bank of America delivers services and products that are tailored to suit their needs. For companies, Bank of America is dedicated to the provision of advisory and financing needs of investment and commercial clients across the globe (Bank of America). Finally, the company aims at providing trading capabilities and sales research across the globe. To summarize the mission statement, the Bank of America’s wide range of global capabilities and financial services that enables it to provide comprehensive solutions to its clients.
Current issues of the organization
Bank of America is currently facing a number of issues that might threat its growth and profitability levels. The first issue is the increasing regulatory challenges that has brought an increase in the level of expenditure because of compliance costs. An excellent example is the Financial Reform Act of the US that brought several regulatory changes and developments. Another regulatory change is the Durbin Amendment of 2011 that led to declined debit inter charges (MarketLine Report 28). The second issue facing Bank of America is the declined level of economic growth and prospects of the United States and other operating regions. The slowed economic growth has a direct effect on business and consumer spending thereby affecting the level of revenue the company can generate from its business operations (MarketLine Report 28). Another key challenge that Bank of America currently faces is the intense completion that is likely to affect the volume of profitability and market share for the company. There is no doubt that the operating environment for Bank of America is highly competitive because of the presence of investment banking firms, brokerage firms, credit unions, banks, mortgage banking companies, credit card issuers, and insurance companies among other companies. Each business segment faces a unique type of competition and for this reason; BoA will continue to face intensified competition in its different areas of operation (MarketLine Report 28).
Other issues that might affect Bank of America include the deteriorating management of expenses as evidenced from the low efficiency ratio. This means that the ratio of expenses has increased as compared to the levels of revenue generated by the company. In turn, the Bank will ultimately face limited expansion in the level of profits because of unfavourable efficiencies. (Word Count: 853).
Work Cited
Bank of America. Our Story: Who We Serve. Web. 16 Sept. 2013.
MarketLine Report. Company Profile: Bank of America Corporation. MarketLine. 2013
