CASE STUDY:

Wells Fargo &

Company

Mechille Cui
Katlene Hortilano
Fellyn Angela Papa
INTRODUCTION
Wells Fargo Values

• What’s right for customers.

• People as a competitive advantage.

• Ethics.

• Diversity and inclusion.

• Leadership.
Methodology

 Secondary Research

 Data Analysis
Company Profile
 Diversified, community-based financial
services company.

 Engaged in banking, insurance,

investments, mortgage, and consumer
and commercial finance.

 operates through
• community banking,
• wholesale banking,
• wealth & investment
management
 a result of a merger between San
Francisco–based Wells Fargo &
Company and Minneapolis-based
Norwest Corporation in 1998 and the
subsequent 2008 acquisition of
Charlotte-based Wachovia

 Operates 12 museums, the Wells Fargo

History Museum
 World’s fourth largest bank by market
capitalization
 Fourth largest bank in the US by total assets
ranked number 26 on the 2018 Fortune 500
rankings of the largest US corporations by total
revenue
 world's most valuable bank brand for the second
consecutive year in The Banker and Brand
Finance study of the top 500 banking brands.
 ranked 7th on the Forbes Magazine
Global 2000 list of largest public
companies in the world
 ranked 27th on the Fortune 500 list of
the largest companies in the US.
 ranked the 22nd most admired company
in the world,
 7th most respected company in the
world.
Historical
Background
 Founded by Henry Wells and William George Fargo on
March 1852
 Handled the purchases, sale, and transport of gold dust,
bullion and other goods
 Its agents and messengers gained a national reputation for
their derring-do—for getting the express through regardless
of obstacles—as well as for their professionalism.
 In 1905 Wells Fargo merged with the Nevada National
Bank (founded 1875) to form the Wells Fargo Nevada
National Bank.

 In 1923 this bank merged with the Union Trust Company

(founded 1893) to form the Wells Fargo Bank & Union
Trust Co.
 In 1960 it merged again, this time with the giant
American Trust Company (dating to 1854), to form the
Wells Fargo Bank American Trust Company.

 In 1969 the holding company Wells Fargo & Company

came into being; it owned all shares of Wells Fargo
Bank, NA, as the bank was renamed
Location and
Layout
 based in San Francisco California ,- Sioux Falls, South
Dakota.

 June 2018, it had 8,050 branches and 13,000 ATMs.

 In 2018 the company had operations in 35 countries

with over 70 million customers globally.
 Charlotte, North Carolina, Denver, Colorado, Des
Moines, Iowa, Los Angeles, California, Minneapolis,
Minnesota, Philadelphia, Pennsylvania, Phoenix,
Arizona, Portland, Oregon, Sacramento, California and
San Francisco, California.
 Wells Fargo & Company conducts business outside the
U.S. through various companies, including duly
authorized and regulated subsidiaries and affiliates in
Asia, Canada, Europe, and Latin America.
Organization and
Management
Charles W. Scharf
CEO & President
Board & Advisors
FUNCTIONAL AREAS

Production 01

02
Marketing

Finance 03

04 Human
Resource
 Production
 Banking.
 Loans and credit.
 Insurance
 Investing and retirement.
 Wealth management.
 Business services.
 Commercial services.
 Marketing
 Product, Price, Place, Promotion
 customer value-based pricing
 Federal Deposit Insurance
Corporation (FDIC)
 social media platforms
 integrated marketing campaigns
 Finance
John Shrewsberry, CFO
 major investments in product
capability and customer experience by
investing in technologies
Flexibility to cope up well in changes
of regulations and standards for large
and international banks.
Investing on gun industries, pipelines,
and private prisons

Using centralization of finance as a

development tool
Financial Performance of Wells Fargo & Company for the past 10
years
Human Resource

Wells Fargo value and support their employee

as a competitive advantage

a stock purchase plan and take advantage of

discounts on financial products, home
mortgages and more.
Human Resource
company provides all eligible regular and part-
time team members with a comprehensive set
of benefits
• health plans,
• paid leaves and time off,
• medical, dental and vision benefits,
• 12 paid holidays,
• educational benefits for their team
member’s children
Problems of the
Company
 Employees fabricated millions of
fraudulent accounts in order to keep their
bosses happy and remain employed

 “Eight is Great”

 , “If you don’t meet your solutions you’re

not a team player. If you’re bringing
down the team then you will be fired, and
it will be on your permanent record.”

 Auto insurance issue

Plans of the
Company
 The company hired an independent
consulting firm to review all account
openings since 2011 to identify
potentially unauthorized accounts.

 $2.6 million was refunded to customers

 5,300 employees were terminated

 New incentive pay system

 new procedures for verifying account

openings and introduced additional
training and control mechanisms to
prevent violations.
 STRENGTH WEAKNESS
W
S O
THREATS T OPPORTUNITI
ES
• Segment-specific offerings

• Business Philosophy

• Acquisitions

• Customers across income groups

• Wholesale and retail banking

• Community Banking Services

• Customer Relationships

• Bank Scandal

• Higher costs
• Growth in smaller towns

• Expansion in other countries

• Taking huge strides in financial reforms

• Competition

• Financial unrest
 SUMMARY

VISION STATEMENT
“We want to satisfy our customers’ financial
needs and help them succeed financially. This
unites us around a simple premise: Customers
can be better served when they have a
relationship with a trusted provider that knows
them well, provides reliable guidance, and can
serve their full range of financial needs.”
CONCLUSION

 More revelations of misconduct unfolds

 Do Wells Fargo is really addressing the
systematic issues at the Bank?
 The advocacy of the bank is not in line
with their actual application
 not everything that we see is real and
should be trusted.
RECOMMENDATON

Stronger and tighter internal control

Eliminating the unattainable sales target
Proper treatment of their employees
Activities to regain the trust of the
customers
Proper business ethics