Bank of America Corp (BAC) Wants to Profit Off of Small Businesses

Cross-selling
Bank of America Corp (NYSE:BAC) isn’t the only big-bank suitor courting this particular segment. Wells Fargo & Co (NYSE:WFC) was recently recognized by the U.S. Small Business Administration as the No. 1 Large 7 (a) Lender of the Year, the second time in three years the bank has accepted this honor. The bank was given kudos for approving over $1 billion in small business loans in fiscal year 2011, and bested that amount in 2012.

On the other hand, Citigroup Inc (NYSE:C) has taken the opposite tack, firing many of its small-business professionals in a bid to save money. The bank insists it will be able to fulfill its stated goals as far as small business lending goes, however. Recently Citi announced the opening of a flagship branch bank in Los Angeles — where the focus is on supplying all the services of a full-sized bank, including small business and commercial lending.

For Bank of America Corp (NYSE:BAC), the emphasis on serving small businesses should segue nicely with its current plan to cross-sell different products to the same customers, something at which Wells Fargo excels, and which B of A strives to perfect. As far as that strategy is concerned, Cash Management Essentials looks like an excellent candidate.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo & Co (NYSE:WFC). The Motley Fool owns shares of Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C), and Wells Fargo & Co (NYSE:WFC).

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