Bank of America 2003 Annual Report Download - page 11

Raising the Bar in the Middle Market
25,000
Clients have told us that a key
driver of their satisfaction is
the extent to which we know
their businesses and their
industries. In response, we are mar-
shaling the expertise of our client
teams and product specialists who
focus on various industries such as
health care, retail and education to
bring our clients a higher level of
service. Teams serving clients are no
longer limited by their own knowledge
of their clients’ industries. Now they are
able to call on in-house experts from
around the country for the specialized
help they might need to set a higher
standard of knowledgeable service. By
listening to our clients and addressing
their expectations, Bank of America has
become the nation’s leader in serving
businesses with yearly revenues of $10
million to $500 million.
Research confirms that bankers
who know their clients’ industries
achieve higher client satisfaction,
generate more revenue and sell more
products and services. In our case,
this includes a full suite of investment
banking services. For example, a
banker specializing in higher
education issues can help university
officials project their student housing
needs 10 years out, then guide the
university through the complex
process of issuing tax-exempt bonds
to build the needed dorms.
By cross-selling a full suite of prod-
ucts, including non-credit offerings
such as payroll services, investment
management, capital raising and
merchant services, we are also increas-
ing non-credit revenue, which helps to
reduce the volatility of our earnings.
Because we focus on knowing our
clients and their industries, our
clients can expect knowledgeable
bankers who can supply them with the
right mix of products and services.
Companies and other institu-
tions with annual revenues in
the millions or billions of dollars
can’t function effectively
unless they can properly
manage their cash. They need
to collect revenue quickly,
make payments reliably and
move money efficiently.
Bank of America has
quietly emerged as the market
leader in this less visible but
vital area of banking, known
both as cash management and
treasury management. We’re
doing so by giving government
and not-for-profit agencies, small
and medium-sized businesses,
and Fortune 500 corporations
alike a set of products and
services that best suits their
very different needs while
giving them a global reach in
payments and collections. Along
the way, the bank has earned
the accolades of customers in
the United States and abroad
for providing, not simply
products, but also solutions.
In 2003, both midsized and
large companies voted Bank
of America the best bank for
domestic cash management
services, in a poll conducted
by Treasury & Risk Management
magazine. The bank’s Global
Treasury Services, which now
operates in 31 countries, was
also named the best cash
management and payments
bank by EuroMoney magazine.
Treasury management means
different things to different
clients. A small business
owner might depend primarily
on a service that sweeps any
excess cash for operations
into an investment account.
Larger corporations have
many more needs, including
processing and information
reporting on many types
of payment and receipt
transactions, as well as
up-to-the-minute account
balance information.
BANK OF AMERICA 2003 19
PROPORTION OF COMMERCIAL
BANKING REVENUE FROM
NON-CREDIT SOURCES
Knowledge-Based
Service
With more than $11 billion
in commitments to the
agribusiness and food
processing industries,
Bank of America is one
of the largest providers
of financial services to
this important industry
sector throughout the
United States. Clients
value our expertise in
their business as well
as our ability to provide a
complete range of financial
products and services.
midsized companies, more than any other bank
The Market Leader in Treasury Management
In 2003, Bank of America served
2003: 49.4%
2001: 41.1%
2002: 46.7%
■We’re transforming our commercial banking business, giving clients the industry-specific expertise they need.
■Deepening relationships with clients helps reduce earnings volatility by balancing credit and non-credit revenue.
■We’re the market leader in cash management, ranked by U.S. businesses as best-in-class.
Highlights