1 Way Bank of America Can Win

Earlier this week, an article from Atlantic Wire decried the fact that "free" checking accounts are getting harder to come by. What jumped out at me though, was this:

It's not like people aren't upset either, as Bankrate notes that 72 percent of people surveyed would change lenders if their fees were upped ... until they realize how annoying it is to changing [sic] your direct deposit, automatic bill payments, ordering new checks, or getting a hold of an actual living person working at a bank.

As I read that, I couldn't help but think of Bank of America (NYSE: BAC  ) and its designs on broadening and deepening its relationships with customers. Here's what CEO Brian Moynihan told The Boston Globe at the end of last year:

We need [retail customers] to consolidate their relationship with us. If they have part of their relationship with us and part of their relationship somewhere else, that's the difficult thing. Our job is to get the whole relationship.

The B of A circa 2007 to 2009 did a lot of stupid things. With Brian Moynihan at the helm, it appears that the tide may be reversing and that the bank could be headed toward becoming a better, healthier institution -- perhaps something that resembles the bank that it was before the disastrous Countrywide acquisition.

The idea that B of A is focusing in on retail customer relationships and trying to make them broader and stickier may seem like a small matter, but it's a big deal when we think about it as indicative of strategic priorities. In the years leading up to and during the financial crisis, the priority was clearly on simply becoming a bigger bank. Today, however, management appears to have its sights set on becoming a better bank.

Does this make Bank of America a great stock to buy? Not by itself. But there are other reasons to consider B of A for your portfolio. To get the full picture, be sure to check out The Fool's special report focused on B of A. Click here to learn more.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Fool contributor Matt Koppenheffer owns shares of Bank of America, but does not have a financial interest in any of the other companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2032746, ~/Articles/ArticleHandler.aspx, 10/24/2016 9:26:55 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 minutes ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:00 PM
BAC $16.77 Up +0.10 +0.60%
Bank of America CAPS Rating: ****