BoA to bolster SME lending
(14 October 2010 – USA)Bank of America announced Thursday that it is launching a program in the Washington area to improve lending and services for small businesses.
The move from the lender comes as the White House is calling on the nation's biggest banks to help shore up Main Street.
The announced program involves hiring 1,000 bankers over the next year to specialise in developing relationships and products.
The bank also said it is on track to 'blow away' its goal of increasing lending to small businesses by US$5 billion (A$) this year, a pledge it made last year after a meeting between the heads of large banks and President Obama.
Brian Moynihan, chief executive of Bank of America said that anything that we can do to create more economic certainty should have a positive effect.
Bank of America said that its new program is not focused only on lending but includes helping businesses with accounting, cash management and even retirement planning.
The bank has about 4 million small-business customers, about 12 percent of the market.
Joe Price, head of consumer banking at Bank of America said that they want offer the full suite.
Mr Price added that previously many small businesses fell between the cracks because the bank did not have employees dedicated to serving them. This program is part of the bank's strategy to increase revenue by expanding its products for existing customers, rather than seeking out new clients amid a stricter regulatory environment.
The announced program involves hiring 1,000 bankers over the next year to specialise in developing relationships and products.
The bank also said it is on track to 'blow away' its goal of increasing lending to small businesses by US$5 billion (A$) this year, a pledge it made last year after a meeting between the heads of large banks and President Obama.
Brian Moynihan, chief executive of Bank of America said that anything that we can do to create more economic certainty should have a positive effect.
Bank of America said that its new program is not focused only on lending but includes helping businesses with accounting, cash management and even retirement planning.
The bank has about 4 million small-business customers, about 12 percent of the market.
Joe Price, head of consumer banking at Bank of America said that they want offer the full suite.
Mr Price added that previously many small businesses fell between the cracks because the bank did not have employees dedicated to serving them. This program is part of the bank's strategy to increase revenue by expanding its products for existing customers, rather than seeking out new clients amid a stricter regulatory environment.
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