Strengths
1. Wells Fargo enjoys the strong brand name and good financial position of the brand.
2. The company also enjoys the sound credit rating over the products.
3. The brand has introduced diverse products and services to the clients.
4. The company has employed huge number of employees, which are over 280,000 employees across
the globe.
5. The company is the second largest bank, which has great amount of deposits, debit card and home
mortgage services.
6. The company has maintained wide distribution network for the sale of its products.
7. The company also carries out the diversified earnings distribution across its various segments.
8. The strong credit discipline is the actual strength of the company.
Weaknesses
1. The brand has less global presence if it is compared to other companies in the same business.
2. Various legal issues show the weakness of the global brand.
3. There are various customer complaints, which show their low level of care and also show their
dissatisfaction.
4. The brand has weak asset quality in the real estate exposure.
5. The brand has very limited global presence.
Opportunities
1. The company needs to take the opportunity to expand its business in other countries.
2. The company has diversified portfolios, which can attract the attention of the clients.
3. The company needs to tap the commercial banking industry.
4. The company needs to have some acquisitions and joint ventures with other companies to extend
their business.
5. The use of technology to enable the offerings of the products.
6. The brand needs to have significant growth in the commercial banking industry.
7. As the number of immigrants is grown, so it creates the opportunity for the brand to meet their needs
through effective supply of grocery and retail items.
Threats
1. The changes in the rules and regulations by the government, can affect the business of the company.
2. The company has to face some financial crisis in some countries.
3. Some online frauds and scams were also done with company, which is also serious threat till now.
4. With the implication of the regulations on the contingent commission, the business of the company
can be affected.
Conclusion
Wells Fargo is the financial holding company and it is committed to provide corporate, commercial and
banking services to the clients. The company has shown the effective financial position and it enjoys
good credit rates. The company is dealing its business in over 24 states of America and huge number of
employees is working in this company. The company has excellent home mortgage, debit card and has
excellent amount of deposits to run its business effectively. The company has the adverse effect due to
limited global presence and it needs to take the advantage of some opportunities to extend its business.
Despite of good brand, the number of customer complaints shows the lack of experience and skills
among its clients and it is dire need for the company to get them trained in their professional working in
the brand.
Strengths in the SWOT analysis of Wells Fargo
The following are the strengths of Wells Fargo :
Segment-specific offerings: The company caters to three key segments namely personal, commercial,
and small industries and has specific services to offer to each of them. For their retail customers falling
under a personal category, the Company list of services includes banking, loans and credit, insurance,
investing and retirement, wealth management, and rewards and benefits. Under the commercial
segment, Wells Fargo offers loans, insurance for the owner as well as assets, credit facilities, merchant
services, Online banking services, round the clock customer service etc. Under the small industries
segment, their line of services includes banking, loans and credit, merchant services, insurance, and
payroll and other services.
Business Philosophy: The business philosophy of the company Wells Fargo is centered around five core
values which are the basis for everything that the financial services company does. These values are
string customer focus, consideration of people are the biggest source of competitive advantage, highest
standards of ethics and transparency, diversity and inclusion and leadership.
Acquisitions: One of the core strengths of Wells Fargo is the series of regional acquisitions that it has
made. Some of these include the 1998 merger between Wells Fargo and the Norwest Corp.,
headquartered in Minneapolis, the buyout of East Coast giant Wachovia in 2008 etc. These acquisitions
increased their customer base in the US to almost 70 million.
Customers across income groups: Wells Fargo has customers from all income groups. While the economy
customers avail services such as credit cards, bank accounts, loans etc. the higher income segment looks
at services such as wealth, brokerage, and retirement services. Wells Fargo also offers services such as
financial support services, taxation services, and underwriting services.
Wholesale and retail banking: The financial services provider Wells Frago takes up wholesale banking
services like equipment financing, crop insurance, energy syndicated loans, commercial real estate etc.
The company also takes care of retail banking function like bank loans, credit, and debit cards,
Community Banking Services: Wells Fargo has community banking services like credit cards, bank
accounts, debit cards, account management, loans etc. Though it may seem regular community banking
constitutes one of the most profitable divisions of the bank.
Weaknesses in the SWOT analysis of Wells Fargo
Some of the key weaknesses of Wells Fargo are:
Customer Relationships: There have been allegations that Wells Fargo though claims to be customer-
centric, treats higher income customers differently from lower incomes customers.T he lower income
group often suffers because of this reason.
Bank Scandal: Wells Fargo is still facing the aftermath of the scandal of fake accounts and fraudulent
transactions. Following the scandal, many long-standing customers shifted to other banks and the bank
suffers the loss of face primarily because of loss of trust.
Higher costs: Wells Fargo had expanded a lot in the last decade and this expansion was a costly affair.
The bank also faced a lot of costs in its operations across various financial domains. In addition to this,
there was also a lot of legal charges and other related costs related to the scandal and its management.
Opportunities in the SWOT analysis of Wells Fargo
Growth in smaller towns: Wells Fargo is primarily in cities and most of its operations are in the USA
especially in banking. The company should look at a market outside the US like China or India which are
registering steep economic growth as well as taking huge strides in financial reforms.
Threats in the SWOT analysis of Wells Fargo
Some of the threats include:
Competition: The main competitors of Wells Fargo are Citibank, Novo Scotia Bank and Bank of America
Financial unrest: The world over is facing critical financial crunch and there has been major ups and
downs in the financial services market. This will affect the operations of the bank in the long run.
