How we're evolving
We’ve tackled a number of major issues facing our industry. Some of the actions we have taken are summarized below.
Fairness and Responding to Consumers
We're planning to expand our industry-leading Clarity Commitment® statements. Eliminating overdraft fees for everyday debit card transactions at point-of-sale and introducing easy-to-read banking statements were just initial steps toward upholding this commitment. We will continue working to better understand what customers want and need, and translate that into solutions to help them manage their financial decisions.
Lending to Small and Medium-Sized Businesses
Credit for small and medium-sized businesses is critical for the U.S. economic recovery. We are at the forefront of helping small and medium-sized businesses weather the sluggish economy and position themselves for growth. We're increasing our lending to small and medium-sized businesses and extending credit through other innovative approaches such as loans and investments to community development financial institutions.
Responsible Home Lending
Buying a home is still the biggest investment most people will ever make. We recognize our role is to provide responsible loan products, transparent resources to help customers understand how these work, and expertise to provide one-on-one guidance through the process for their personal situation. Our experienced mortgage loan specialists are ready to help clients find a loan they can comfortably afford. They have access to a variety of loan options to serve you - whether you are a first-time homebuyer, a buyer with a modest income, an experienced homebuyer, or an affluent buyer with complex financial needs.
Education is one of our top priorities. We foster partnerships and continuously create opportunities for sharing information with real estate professionals so that together we are providing the tools and resources to help consumers make more informed homeownership choices. Bank of America offers a comprehensive array of education tools and resources to help consumers achieve financial literacy, establish or rehabilitate their credit, prepare for homeownership and find solutions to sustain homeownership. Our teammates connect with you to make the home loans process more clear and straightforward. Your Bank of America mortgage loan specialist will walk you through your loan options, and provide competitive rates, and tailored guidance to you unique situation.
We are committed to sharing information with you about Bank of America resources, tools, products and services to empower real estate professionals to succeed. Here are a few of our offerings:
- Bank of America Down Payment Resource Center: This online tool helps first-time homebuyers search for down payment and other cost-saving programs we participate in that can be used in combination with a low down payment mortgage to make buying a home more affordable.
- Home Loan Guide: This online resource helps homebuyers understand the steps involved in purchasing or refinancing a home. We also have many educational articles available to help explain the mortgage process each step along the way, so homebuyers can make decisions with confidence.
- Connect to Own®: We partner with hundreds of nonprofit organizations to offer Connect to Own®, an alliance for homeownership, which delivers pre-purchase homebuyer education and training for first-time homebuyers.
- Financial education: Throughout the year, Bank of America sponsors financial education workshops in local markets to help consumers make more informed financial decisions. Clients can learn about budgeting, preparing for homeownership, understanding and managing credit and more. If you aren’t able to attend one of our workshops in person, we have financial education videos and webinars available for you to watch at a time that’s convenient for you. Additionally, we offer education resources, tools and advice to refine and improve financial plans and portfolio performance.
We were early supporters of comprehensive regulatory reform. We support many of the steps that have been taken to better protect consumers in the financial services sector, including the creation of a Consumer Financial Protection Bureau. We also have been vigorous in defending shareholder and associate interests. If properly implemented, reform should contribute to future stability of the financial system.
Size, Stability and Accountability
We're working to build a “fortress balance sheet” by strengthening liquidity, credit reserve positions, asset quality and overall capital levels and have done so since 2010. Our capital and liquidity are at record levels and on par with or better than our peers.
We responded to the charge that we are “too big to fail” by reinforcing the foundation of our business. We conducted a thorough overhaul of our internal governance processes to make us more accountable and transparent, and we introduced a new risk management framework across our business. We acknowledge and are acting on the great responsibility for ensuring financial stability that interconnectedness demands. We also share a responsibility of citizenship in the many communities in which we operate and our employees live and work.
Executive Compensation and Incentives
Compensation across the financial services industry continues to be a topic of global debate. We have a long-standing pay-for-performance philosophy that ties executive performance to the performance of our company, lines of business and individual executive officers over the short and long term. In addition, consistent with our compensation principles, our executive compensation program provides a mix of salary, benefits and incentives paid over time. We also take into account the manner in which results are achieved, including an evaluation of adherence to risk and compliance policies and other values of our company.
Investing in the Environment
Environmental sustainability continues to be an issue of critical importance to us and those we serve. We recognize our responsibility to take action to reduce our environmental footprint, while having an opportunity to use our business resources to enable our clients, customers and employees to reduce their own environmental impacts. From landmark distributed solar deals to launching a socially responsible investment portfolio for our wealth management clients, we are expanding the scope of our work to correspond with the expansion of environmental opportunities across almost all business sectors.
Read what our CEO has to say about how we are making financial lives better, one connection at a time.
We deliver for our customers, clients and shareholders. We share a passion for serving the financial needs of people, companies and institutional investors.
We are customer-driven, building a business model that enables us to serve customers’ financial needs in ways that are seamless and efficient.