Wells Fargo Group 8

Bottom Line

Wells Fargo must take steps to mitigate the amount of downfall that has resulted from their recent sales scandal.

SWOT Analysis


  • Possesses a leading market position among financial service companies
  • Growth in net income from $21.9B (2013) to $23.1B (2015)


  • Tarnished brand image after recent retail banking sales scandal, lead to firing 5,300 employees
  • Little exposure in emerging markets (ex. China, Brazil, India)
  • Leadership transitions lending itself to instability


  • Changing consumer preferences, namely in the millennial generation
  • Anticipation of decreased compliance costs within the U.S. as a result of the current political environment


  • Global regulatory pressures and investigations
  • Cyber security threats driving costs of security up
  • Increased competition from mobile banking technologies, Fintech startups, and robo-advisors

Proposed Change & Rationale

  • The Account Scandal - employees created 185,000 accounts and applied for over 500,000 unauthorized credit cards

Wells Fargo's Reaction and Resolution

Proposed Change: Wells Fargo should reimburse all ATM withdrawals within the United States

  • Adds value, customer satisfaction, and cash flow to the company
  • Ultimately, this change will attract new customers and increasing convenience for current customers

Kotter's Change Model Analysis

Step 1: Create a Sense of Urgency

  • Lost customers
  • Tarnished reputation

Step 2: Build a Guiding Coalition

  • Train employees
  • Improve customer satisfaction

Step 3: Form a Strategic Vision and Initiatives

  • Vision: "We want to satisfy our customers' financial needs and help them succeed"
  • Align goals with vision
  • By establishing new initiative of free ATM withdrawals, sparks further partnership in meeting customers' desire

Step 4: Enlist a Volunteer Army

  • Motto: "Together we'll go far"
  • Engaging employees through proper mindset
  • Collectively attaining goals

Step 5: Enable Action by Removing Barriers

  • Company mistrust
  • Customers are in control

Step 6: Generate Short-Term Wins

  • "Wins are the molecules of results"
  • Wins = tangible customer feedback, growth in customer base

Step 7: Sustain Acceleration

  • Integrate management functions with leadership practices
  • Fee-free ATM structure combines change management with change leadership

Step 8: Institute Change

  • Integrate ATM fee reimbursements into automated system
  • Communicate this new change to customers - explain how this sets Wells Fargo apart
  • Communicate change to team members - connects directly to customer satisfaction and the organization's success


  • Reimbursement complements Wells Fargo's target market and core competencies
  • Wells Fargo has the opportunity to expand its services and increase its innovation, adding value to the customer

Further Reading

Created By
Caleb Long


Created with images by MoneyBlogNewz - "Wells Fargo graphics" • StartupStockPhotos - "startup start-up notebooks" • Jonas B - "Skyline" • Greg Burkett - "Analysis" • JeepersMedia - "Wells Fargo 5/2014"

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