Wells Fargo Vs Bank of America

Wells Fargo vs Bank of America

Miroslav Pranjkovic

Upper Iowa University

2/23/16

Wells Fargo vs Bank of America

Wells Fargo and Bank of America are financial institutions for consumers and commercial banking needs.  Both banks are serving their customers for over a century and currently offer very much same products.  It is important to realize; each bank plays a big role in the worlds economy.  In other words, if one facing a financial challenge due to some economic crises most likely other bank will face the same effects of the problem.  Each bank has same mind set is to serve customers, provide worlds class services and make money by charging interest on money borrowed.  

In April 2013 Krull reported some of the strengths regarding Wells Fargo’s first quarter of 2013.  Wells Fargo continuously regenerates the revenue since the first quarter of 2010.  Furthermore, the “Tier one Common Equity Ratio” which is critical to risk measure also was up from previous year’s first quarter.  In this same article Krull 2013, states charge-off loan amount declined along with “net charge-off rate” which happens to be at its lowest since 2006.  Overall Wells Fargo was doing good with income and has upsurge price per share by $0.30.  Krull 2013, points out some of the weakness Wells Fargo faces.  Originations for home mortgages declined due rules and regulations placed by Treasure Department.

Krull 2011, has wrote a similar article about Bank of America.  In this article he points out strengths and weaknesses for the Bank of America.  Some of the strengths Krull has pointed out for Bank of America was similar to Wells Fargo.  Bank of America also had been working on mortgage claims and minimizing losses.  Bank of America has been also worked hard to keep stock price at highest as it can be. At this time weakness for Bank of America were quick earning and quick losses along with loan write-off due present economy.  Reason Bank of America had an advantage and working slightly a had of Wells Fargo was because of their successful implementation of “Six Sigma”.

According to Lasater Institute case study about Bank of America “Six Sigma” implementation project started in 2001.  “Chief Executive Officer” (CEO) Ken Lewis of Bank of America first implemented Green Belt project.  This project application has saved money, time, reduced customer complaints and speed up the process of the production. Wells Fargo also introduced different version is called “Lean Six Sigma” under super vision of Paul Sandell 2005. “Lean Six Sigma” is a procedure which involves everyone and do what is right to fixed the problem however, “Green Belt Six Sigma” is when employees have a support from the management to resolve an issue.  Some of the first steps Sandell has taken were to explore what happened and why it happened.  With “Lean Six Sigma” he couched top to bottom communication is the key to the organization Sandell 2005.  He also pointed out WIIFM which means “what’s in it for me”.  This statements my sound selfish but is not just the for in it for the company.  Also gives an employee opportunity to place them self in a customer position and ask the same question.  WIIFM is a very strong statement and it always should be used in any kind of business transaction.  Another key point is Sandell pointed out was process management.  Process management is accountability for managing process to satisfy customers and team members goals.