The main point of my essay is to describe one of the largest banks of the USA. For this reason I chose such commercial institution as Wachovia Corporation. Wachovia Corporation is one of the commercial banking giants of the United States which also include such institution as the Bank of America and Citigroup. The corporation was established in 2001 when former Wachovia Corporation and First Union Corporation merged together into one organization. Headquarters of Wachovia Corp. is situated in Charlotte, North Carolina. The company is considered to be so large due to its operation not only inside the USA, but also around the world. Wachovia has 3,900 financial centers located in forty-nine countries of the world. Wachovia Corp. provides a great variety of services to the population and businesses: a wide range of banking services, investment and corporate banking services, asset management, mortgage banking, home equity lending, asset-based lending, leasing, insurance and others. Among services provided by the company is full service retail brokerage offered to the customers. According to statistics Wachovia Corp. is the fourth larges bank of America on the basis of corporate assets. But according to clients assets it is the third one.
So, what is the secret of Wachovia being so successful? High quality of services is the key point of its success! Accurate work with customers has lead to its popularity among people all over the world. According to official website of Wachovia Corp. its assets comprise $521 billion, average deposits – $320 billion and Stockholders Equity – $48 billion . The quantity of Wachovia’s company exceeds 13 million households and businesses; 10.5 million online product and service enrollments; 3.2 million active online customers, while it employs 94,000 employees.
In order to distribute its money among the clients Wachovia uses 3200 financial centers and brokerage officers, 4400 point-of-sale terminals, while a lot of money transaction are done via internet and phone services. Generally speaking Wachovia Corp is using Internet very widely while providing banking services, which makes it much easier to communicate with the customers. Though some of us might think that this kind of service is not trustworthy enough, it is not so. However, Wachovia is taking all necessary measures to provide a complete safety to the customers and their money. For this purpose Wachovia introduced to the customers a new design of their website last year, which will provide existing and future customers with necessary level of privacy and security together with easy access to most popular areas of the site. Safety is provided by log-in system which gives customers the opportunity to assess their private area of site representing their online banking brokerage.
To make a conclusion on this point I’d like to say, that success of any bank of course very much depends on what kinds of services it provides, but it’s also important to consider the information about money demand and supply, which very much depends on interest rate. The following graph will show this interrelation.
The graph #1 shows the money-market: the growth of income from Y1 to Y2 increases money demand, consequently increases the interest rate from R1 to R2. Graph #2 shows curve LM, which means if the more is level of income the more is interest rate.