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Bank Of America Case Study

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Bank of America is a worldwide banking and financial institution that serves over 35 countries, most commonly located on the Anglo and Latin America clusters. Bank of America has close to 5000 banking location alone in the U.S. and locations in 7 countries of Latin America. “The bank's core services include consumer and small business banking, corporate banking, credit cards, mortgage lending, and asset management. Its online banking operation counts some 33 million active users and 20 million-plus mobile users” (Bank, 2017). The first Bank of America location within the U.S. was in 1904 in San Francisco, California and opened its first Latin America location in Mexico City in 1951. These two clusters have a very diverse culture and factors that affect the banking business in each location. In the U.S. the middle class makes up a majority of the population, while in Latin America most consumers fall below the poverty line, which is a huge factor in the banking business. According to Restuccia’s thoughts in the Latin America development problem (2013), “economic performance in Latin America has often been viewed as the outcome of macroeconomic adjustment, as many economies in the region have suffered numerous economic crises” (p 70). However, Bank of America strives to promote economic growth, helping their employees succeed and create jobs, as well as become mobile and accommodating at every location worldwide.
The United States is made up of 3 social classes with the middle class being the majority of the population. The middle class is considered hard working, educated with moderate and everyday spending. The U.S. has a constantly changing economy the reliant on consumer spending and production rates, the work force and product pricing or inflation. When the economy is booming consumers are more apt to frivolous spending, which means new cars, other loans and credit card use. Bank of America’s success in the U.S. is based on this high consumer spending, more loans and returns on investments. The consumers of America are accustomed to unnecessary spending on luxury items and services like eating out and going to the movies. The U.S.’s higher spending and income provide are greater need for banking and

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