Wells Fargo Corp is a U.S. international banking and financial service provider. The company has its headquarters in San Francisco, California, and has sub-headquarters all over the country. It is a leading bank in the U.S. by market dominance, ranked fourth in the top five largest banks in America by assets, and is the third largest bank in terms of service provision. In 2013, Wells Fargo became the largest bank in the world by market dominance with a value of $236 billion. The bank has branches in over 35 countries and boasts of a customer line of over 70 million worldwide (Wells Fargo Advantage Funds, 2014).
Products and Services
Wells Fargo Corp concentrates its expertise on many aspects of the banking sector. These services include making investments on behalf of customers, insurance services, brokerage services, real estate and trust services, and providing financial consultancy services to its clients. Other services include international banking, foreign money market, ATM services as well as online banking. The company offers diverse product packages such as diversified financial services, consumer finance, banking, home loans, specialized lending, and marketable real estate. Wells Fargo continuously carries out economic studies to improve its financial market approaches and strategic plans. Wells Fargo believes that what is happening its their market environment improves its understanding of investing. As such, it makes use of various reports like agricultural, growth, housing market, economic forecast, local, and regional banker reports and observations to gather all types of economic information (Wells Fargo Advantage Funds, 2014).
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Lending services: Wells Fargo recognizes significance of debt in the overall financial picture of an individual or an organization and, as such, it provides flexible lending products that can allow one attain his or her goals. The company also provides advisory services that complement its investment strategies and approaches. Insurance services: The company owns several insurance agencies that provide insurance services. Examples include Rural Community Insurance Agency Inc., Wells Fargo Insurance Inc., Wells Fargo Insurance Wyoming, Inc., and Wells Fago Insurance Montana, Inc.
Recent Performance of Wells Fargo
The vision of Wells Fargo is to satisfy all financial needs of its consumers and to assist them gain financial success, as well as to gain recognition as the primary financial service provider in the market and to become the greatest company in America. In achieving this mission, Wells Fargo has applied numerous strategies such as increasing the number of products utilized by customers to win new customers and increase the market share. In 2013, the balance sheet increased by 7% to $1.5 trillion, mainly due to a strong rise in the deposit rate. The capital levels and the quality of credit also continued to improve.
The Existing Global Business Environment
Wells Fargo carries out its business activities globally with people and organizations that deal with money. There are economic trends that could affect the business in the banking sector, for example, stock markets that are usually an indicator of a nation's economy. If the stock market goes the negative way, it signifies a fall in the economy and, as such, few individuals will be saving and investing in the economy.
Regulations are the policies of regulation that change continuously. Wells Fargo has had to deal with changes in policies from the regulatory bodies in the U.S. These bodies include the Federal Reserve Board, which is the main body among the fifty or so state regulatory agencies. Some regulations are meant to protect poor citizens and small business entities and make sure their money is safe.
Political and social trends are dynamic in every society and are manifested in all aspects of life. Human innovations bring new systems that are accompanied by certain unpredictable behaviors. Social trends are related to technological trends as a social aspect tends to lean towards technology. Wells Fargo has remained in the market due to the development of technology compliant products and services, e.g. online and ATM banking. Political trends such as presence of war also have some impacts on the banking industry.
Other challenges that Wells Fargo has had to deal with in the industry include the fluctuation of currenciess and inflation. Demographic trends, as well as market and international trends are also significant. The company has to watch the customer's behavior in order to make good decisions. As much as these trends pose a challenge, they can also provide opportunities so that the more a company can keep up with the social trends, the longer it will remain in business (Mergent Online, 2012).
Future Prospects of Wells Fargo
As already discussed above, technology is of paramount significance in the sustainability of every organization. As such, WelllsFargo should invest more in the research to come with new products that belong to the "tomorrow's era". By improving the technology, it will continue with its expansion both in the business and the market share. The company should also improve the ease with which customers can use its internet services by developing more user-friendly customer interface programs. It can also provide tax-free services and free internet to its clients.
Although Wells Fargo is international, it should become ‘more international'; i.e. it should expand to more countries since it is available only in 35 countries. It should also increase the number of its branches and ATMs worldwide. Another prospect is to increase the number of working hours, maybe it should consider the 24-hour system. These prospects will get limitations from certain challenges such as stiff competition in the market, consumer loyalty, security, and a potential of civil unrest in their market territory (Mergent Online, 2012).
Wells Fargo Corp is a U.S. international banking and financial service provider with its headquarters in San Fransisco and many more sub-headquarters across the country. Wells Fargo operates in 35 countries worldwide, including the Middle East. The company has many products and services in banking and investment sectors in the economy. Although there are multiple challenges in the industry, Wells Fargo has been growing both in business and market share as shown by the company's performance indicators for the past five years. Wells Fargo will have to formulate more strategies so as to overcome certain challenges and advance in its vision of expanding in terms of the market share.
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