The stock of Bank of America Corp (NYSE:BAC) closed at $28.93 losing 0.41% in yesterday’s trading session. Bank of America is well aware of the super competitive world of credit cards and it hasn’t been left out in the struggle. However, the question that anyone following on its progress needs to ponder over is on whether or not it is doing enough.
It was on Tuesday that CEO Brian Moynihan made an appearance at a financial services conference that took place in New York. He admitted that the bank had presented itself as one of those companies struggling for the market share.
However, rivals have downplayed this and from the outlook it seems like it is luring away customer relationships. In a statement he expressed great confidence outlining that they were quite proud about what they had achieved so far. He did not hide it that the lender still had much to do.
It was a shocker to many after Bank of America slipped in rank to occupy the fifth position by market share. That was blamed on the failure to cultivate one of its units.
Moynihan has all through defended his company saying that they believe in treading their own path. He disclosed that over the years they had paid substantial focus in the strengthening of the existing relationships which they deemed important towards attaining immense business success.
At the moment, the company is working on the strategies it might employ towards getting two-thirds of its client base to settle for its card in carrying out most of their transactions.
The company’s spokesperson opined,” Notably, Bank of America recently rolled out a revamped rewards program, albeit belatedly. Although costly, this could turbocharge the business and reverse its recent course: As a percentage of volume, Bank of America’s card arm has met the same fate as American Express Company (NYSE:AXP).”
But it is not the time for pointing fingers because every business from time to time has challenges or parts that need fixing. This bank is not exception and it needs to be understood now more than ever.