Bell State Bank & Trust
Service Audit
A comprehensive overview by Hiteshlalchand Ahuja
Services Marketing: Fall 2014
Situational Analysis
The banking industry
The Merriam Webster dictionary defines the noun “bank” as “an establishment for the custody, loan, exchange, or issue of money, for the extension of credit, and for facilitating the transmission of funds.” In essence it is an institution that serves as a medium of flow of funds between users and savers. A bank is a financial institution that links the flow of funds from savers to users and back. For the purpose of this audit report we will broadly classify banks into two major categories: commercial banks and investment banks.
A commercial bank is a financial institution that provides services such as credit services (personal loans, commercial loans, personal credit cards, business credit cards), cash management services (automated cleaning house, account reconciliation), services related to deposit (checking/saving deposit, CD), foreign exchange services (wire transfer, travelers check), and safe keeping services (safety deposit boxes). Investment bank is a financial institution that provides services such as asset securitization (asset backed commercial paper, trust preferred), merger and acquisition services (planning and acquisition strategy, memorandum preparation), security underwritings (initial public offerings, secondary offerings), equity private placements (growth capital, recapitalizations
National trust company operates in both macro and micro environments. Its micro environment integrates stakeholders including, suppliers, owners, customers, local residents, competitors, and financiers. Its macro environment entails, social, political, cultural, economic, technological, societal and legal environment.
There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).
Maximising long-term value for its customers, shareholders and its employees is the organisation’s main strategic priority. Commonwealth bank’s strategy is to create long- term value and maintaining competitive advantage by differentiating itself from its competitors.
commercial banks Thrift Institution are depository institution, banks basically that offer savings and loan they are mutual savings banks and credit unions.
Simply putting, banks accept deposits from public; keep some of those deposits with them and lend the rest to businesses and individuals. Businesses and individuals in turn pay interest on
Building societies: which raise funds by the acceptance of household deposits, loan money, and payments services.
In this first section of the Social Media Plan for Wells Fargo, it will discuss the internal and external environments of the company, this will also include a SWOT analysis. Following this analysis, the corporate objectives for social media will be discussed as well as the target market analysis.
JP Morgan and Chase (JPMC) is the top fanatical service of US market and the biggest bank in US. JPCM with its exceptional 5 different business segments, which are corporate and investment banking (CIB), consumer and community banking (CCB), asset and wealth management (AWM), commercial banking (CB) and corporate entity.
The company consistently provides superior customer services to its clients before and after providing investment solutions (Invesco Ltd., 2013).
In 1974, there were an even number of REITs between three types 12 equity, 12 Mortgage and 10 Hybrid; however, in 2006, the number of equity REITs increased to significant number (138) while there were 38 Mortgage REITs. On the other hand, the number of Hybrid REITs had reduced to only 7. Due to the recent financial crisis, the number of REITs in 2008 reduced to a total of 136 with 113 of them are Equity, 20 are Mortgage and only 3 Hybrid. As of 2014, due to the recovery of the US economy, the number of REIT increased to 216. Among those, 177 are Equity REITs, 39 are Mortgage while there are no Hybrid REITs.
Wells Fargo is an American multinational diversified financial services company. The company operates throughout the world. It is one of the largest banks in the US in the state of assets. Moreover, Wells Fargo is the largest market capitalization bank in the US. It takes the second category in the field of deposits, delivery of home mortgage services, and delivery of credit cards. The company has its headquarters in Francisco, California. The company has coverage of more than twenty-four states in the US. In every state, it has established its headquarters that act as distribution and storage regions for the company's products and services. The company offers insurance, banking, mortgage, and consumer financing through the sale and distribution of its networks across the US. The advantages of Wells Fargo Company are widely distributed: they have helped it realize a stable market in the United States and around the globe.
Banks: Commercial banking services: It is commonly referred as 'Bank '. A commercial bank distinguishes itself from investment bank, which is a financial service which doesn 't lend money to the business directly, but instead helps businesses raise money from other firms in the form of stocks or bonds.
Investment Banks enable individuals, institutions such companies, governments to raise capital by offering underwriting services or working as an agents of the client in offering securities or in both roles. Investments banks play a very important role in stimulating investments in the United States both from individuals and corporate.
Investment banks-- A specific division of banking related to the creation of capital for other companies. Investment banks underwrite new debt and equity securities for all types of corporations. Investment banks also provide guidance to issuers regarding the issue and placement of stock. Investment banks are capital flows that are indirect transfer.
Investment Banking is the business of raising capital, increasing profit, and advising on any financial transactions. Investment Banking is done on both the microscopic level with individuals looking to gain advisement as well as on the macroscopic level with large companies. The practice of Investment Banking in the United States developed around the 1800’s in New York. The first banks focused on the sale of government bonds and it wasn 't until the 1860’s that bankers like J.P. Morgan began to expand the practice into investing in other securities. In the late 1900’s, companies began to lobby for greater flexibility to invest. Investment banks developed into new kinds of business, most representing new varieties of long standing products involving securitization.