Over 160 years ago, William Fargo and Henry Wells founded a company that has now become an integral part of the American Economy. The history of Wells Fargo outlines from its formation to merger with Norwest. Gold was discovered in 1848 at Sutter’s mills in California- that remarkable event in the history which brought inventors and enterprises from east and west for huge profit that had been waiting for them in California. William Fargo and Henry Wells, natives of Vermont had been doing business in the East before they saw opportunities in the West.
Wells Fargo – An Overview
Wells Fargo is a diversified financial service company offering top of the line banking solutions, insurance, loans, opportunities for investment and commercial finances through over 9000 branches, online banking and over 12,000 ATMs. Wells Fargo has assets worth over $1.4 trillion with more than 280,000 employees working in their 80+ businesses throughout the world. Currently, Wells Fargo is offering banking, investment and insurance services to one out of every three U.S households. Founded in 1852 by Henry Wells & William Fargo with a few branches in California, the company is operating overall the globe and offering many customized banking services according to local needs.
The company’s website makes it easier for prospective customers to register and login for online banking practices, such as checking account statement, sending money, payments for gasoline, electricity, water and other utility bills, and availing short or long term loans. Wells Forgo offers a range of financial services in over 80 different financial lines. Wells Fargo demands from its customers to verify their state because account details vary across the United States. Their checking and saving accounts are designed according to customers’ financial needs and demand from the corporate sector.
Major Services offered by Wells Fargo
Wells Fargo community banking services includes regional banking, consumer deposit groups, diversified baking products and their customer connection service which includes phone banking, credit card customer service and Wachovia Direct Access. In the United States, Wells Fargo has more than 2000 mortgage service branches.
Their whole sale banking segment deals with product sold to large commercial companies as well as small businesses and consumers on whole sale basis. The wholesale banking products and services include, treasury management, lending, asset-based lending, mutual funds, corporate, institutional and real estate trust services, and investment banking and capital market service through Well Fargo Securities.
Wells Fargo online banking services are available on Smartphones, tablet PCs and other online accessible resource.
Wealth, Retirement and Brokerage Services
LLC, Fargo Advisors, Wells Fargo Investments and many national brokerage and dealer firms are connected with Wells Fargo to offer investment products to individual and commercial customers. Wells Fargo provides family wealth group and private bank for high net worth individuals. The company is operating mutual funds under its subsidiary Wells Fargo Advantage Funds. Wells Fargo Advisors is the third largest brokerage firm in the United States, operating in St. Louis and offering brokerage services around the country. The said advisor had record $1.1 million retail client assets as per its 2010 financial reports. This subsidiary was known as Wachovia Securities until May 1, 2009 and Wells Fargo changed the name after its acquisition from Wachovia Corporation.
Wells Fargo Securities (WFS)
Wells Fargo Securities, a subsidiary of Wells Fargo & Co is the 9th largest security company in the United States. The financial performance and size of the group has not been disclosed, but it has been estimated by experts that the company has about 2,000 employees and they are generating $3-4 billion annually from their investment banking services. The two major competitors of Wells Fargo Securities are J.P Morgan Securities with annual revenue of $6 billion and Bank American with an estimated $5.5 billion annual revenue.
Wells Fargo Home Mortgage
Wells Fargo Home Mortgage is one of the U.S top mortgage service providers with estimated services of $1.8 trillion. In 2012, Wells Fargo home mortgage was estimated to be 30% with some portion of aggregated small loans. For this year it is estimated to be 22.2% and about 8% of this share points in aggregation.
Small Business Loans
Wells Fargo offered over 1,900 small business loans during 2012 and this volume of SBA loans has put Wells Fargo on the top of SBA lenders in Virginia, Texas, Pennsylvania, New Mexico, North Carolina, Iowa, Florida, Colorado and Arizona.
Cross selling – the practice to encourage their existing customers to buy other banking products has played a huge part in Wells Fargo’s success. Being a customer means that you trust your bank. This is the very fact which makes cross-selling so effective. A customer inquiring about one services is pitched with another and because of the trust which the customer has on the bank, this strategy works more often than not in increasing customer’s profitability to the bank and also making it difficult for them to switch the bank. Forbes Magazine has also described WellsFargo better than anyone else in the business when it comes to cross-selling.