Bank of America is a cooperation that was founded in 1874. Located in North Carolina, this cooperation provides several services through its subsidiaries. These include; banking and financial products and services for individual consumers, large corporations, governments etc..
Regard to Money
When it comes to competitive advantages, this bank has a number of them. The first one is in regard to other peoples’ money. Bank of America has more non-interest-bearing deposits as compared to other banks in the US. Why is that so? It’s because it was formed back in the days to serve individuals who had been ignored by America’s best leading banks. This bank concentrated more on the commercial consumers. This is, however, the reason why this bank earns more money than other banks when interest rates rise.
Location Convenience
Location convenience is another competitive quality of the Bank of America. In 2016, the bank introduced a broad rollout of Card-less ATM technology. It became the first major bank to do so. It is also committed to introducing new branches as well as renovating the existing ones. According to Reuters, Bank of America had 4,579 branches at the end of the fourth quarter in 2016.
Online Presence
The customers can use the bank’s online features to check their account balances. They can also review statements and transfer the funds from one account to another. This is made possible by the existence of internet banking. The bank’s website has the ability to accommodate both the mobile and computer access. The bank has also established an app which makes it easy for customers to deposit the checks. This app allows one to pay for the purchases using a digital wallet. One can also manage his or her account among other things.
Concern for Security
Privacy and security protection is highly catered for in the bank. This is because you can keep your identity and your bank account safe with the passwords and security alerts. You can also regulate how the bank shares your information by setting the privacy preferences.
Customer Care
This bank has given priority to the customer needs during its evolvement over the years. Given the fact that the banking techniques have changed in the last 100 years due to technology and other demands. The bank made the changes possible by introducing the credit cards and ATMs in the 1960s. Another factor includes the mobile banking services which were introduced about 10 years ago. Such innovations make the Bank of America very competent.
Domestic Deposits
In addition, Bank of America has an unrivaled share of domestic deposits. It held a staggering $1.19 trillion in the domestic deposits during the first quarter. This figure was more than any other deposit by banks in the US. It is likely to fuel the profits in the bank a few years from now. Again, it had $439 billion worth of apparently free money that could be invested in the government bonds and assets. Free money is what the bank’s customers have stashed and other types of accounts that are non-interest bearing. These kind of assets are interest-earning. These outstanding qualities, therefore, explain why the Bank of America is the second-largest bank in the United States of America.