Let's face it: when choosing a bank, location matters. Most consumers consider the availability of branches and bank ATMs a key deciding factor when choosing a financial institution, and on that point Bank of America delivers. The largest bank in the US, Bank of America certainly boasts an incredible number of locations- 150 countries and over 6,000 branches, to be exact.
The convenience factor of ATM locations and proximity of the bank to work or home are popular reasons for picking a financial institution to house your hard earned dough. The biggest of the "big four" banks, Bank of America holds an estimated 12.2% of deposits in the US (according to the Wall Street Journal). But what else makes this banking monolith worth the billions it pumps through the economy each day?
A Bit of B.O.A. History
Bank of America began in 1904 when Italian American Amadeo Giannini founded the "Bank of Italy" in San Francisco. Set in a former saloon, Giannini initially began the bank as a way to provide loans to immigrants, middle-class Americans, and farmers denied services by major financial institutions of the time period. As deposits grew and word of mouth carried, the name was changed to "Bank of America," which Giannini felt better expressed the mission of his bank.
Expansion, acquisitions, and branch openings quickly followed. Giannini's tiny bank grew to a powerhouse which backed everything from Disney's production of Snow White to the early start up of Hewlett Packard.
The 21st century saw Bank of America rise and fall in public opinion through the rapid acquisition of Merrill Lynch, NationsBank, and other financial institutions. Seemingly swallowing the competition whole, the rapid growth rate took its toll. Accusations of insider trading and fraud surfaced in 2008, and public opinion of the banking sector dropped steadily during the recession of 2009.
Consumer Criticism
Despite the setbacks, Bank of America has admirably held its own in the financial industry. Love them or hate them, Bank of America's execs seem to know what consumers want. A huge variety of financial services, user friendly website, and locations from Main Street to Dubai have provided Bank of America with a loyal customer base. Sentiments may vary, but it's difficult to argue with the sizeable percentage of Americans who choose Bank of America as their primary financial institution.
With the perks of a big bank, though, come drawbacks. Tales of never-ending bureaucracy, slow turnaround times for mortgages, impersonal customer service, and widely charged fees have a long history in criticisms of Bank of America. The image of Bank of America as a giant unconcerned with customer service left a small but vocal minority jumping ship for local banks.
Bank of America Survival Skills and Strengths
What keeps Bank of America one step ahead (and holding onto its market share) is the remarkable ability to deal with PR troubles quickly. New products, new services, and blankets of marketing targeted towards customers are constantly being rolled out. One example is the brilliant marketing campaign behind the "keep the change" program - customers enroll to have the "change" from each Visa check card transaction deposited into their savings account, like a virtual piggy bank. Products like 'keep the change" maintain the bank's heavyweight position when delivering ease of banking to clients.
A Constantly Moving Banking Machine
To that end, Bank of America has made remarkable improvements to its website. Once overly complex and hard to navigate, the bank's site now offers simply structured sections. Choices range from personal account management, mortgages, and investments to software that allows customers to monitor and graph their spending.
There's even a way to send wires online to accounts in the US and abroad. Talk about a time saver - no more lengthy phone calls or trips to the branch. Just enter the routing information, go through a few security checks, and sending money is as simple as a few clicks of a button.
New online video tools walk consumers through steps to using select online features- another innovative way to avoid a dreaded phone call to customer service. Bank of America has also done a great job at creating a "one stop shop" for clients. A checking account, savings account, investment portfolio, and mortgage held by the same customer can all be accessed with the same Bank of America login ID.
Is Bank of America Worth It?
There are trade-offs and compromises when choosing Bank of America as your primary financial institution. There are too many products to even begin to list here, but the website does a thorough job at explaining most of them. If you're in the market for a new bank, its well worth it to research Bank of America, but don't get overwhelmed by all the options. Stick to the basics - the services you need, ease of use, reliability, and the ability to get answers when you need them.
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