Future of Wells Fargo
CATEGORIES
- Asset Performance
- Innovation assets and pipeline
- Disruption vulnerability
- Company headlines
- Company’s future prospects
DATA ACCESS
Wells Fargo & Company is a US global financial and banking services holding company headquartered in San Francisco, California, with "hubquarters" throughout the nation. It is the 2nd-biggest bank in the globe by market capitalization and the 3rd biggest bank in America by assets. In July 2015, Wells Fargo became the biggest bank in the globe bank by market capitalization, surpassing ICBC, before slipping behind JP Morgan Chase in September 2016, in the wake of a scandal concerning the creation of over 2 million fake bank accounts by thousands of its employees. Wells Fargo outdid Citigroup Inc. to become the 3rd-biggest American bank by assets at the end of 2015. Wells Fargo is the 2nd-biggest bank in home mortgage servicing, deposits, and debit cards. The firm's main American operating subsidiary is national bank Wells Fargo Bank, N.A., which designates its main office as Sioux Falls, South Dakota.
Asset Performance
- Product/Service/Dept. nameCommunity bankingProduct/Service revenue48866000000
- Product/Service/Dept. nameWholesale bankingProduct/Service revenue28542000000
- Product/Service/Dept. nameWealth and investment managementProduct/Service revenue15946000000
Innovation assets and Pipeline
All company data collected from its 2016 annual report and other public sources. The accuracy of this data and the conclusions derived from them depend on this publicly accessible data. If a data point listed above is discovered to be inaccurate, Quantumrun will make the necessary corrections to this live page.
DISRUPTION VULNERABILITY
Belonging to the financial sector means this company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:
*First off, the shrinking cost and increasing computational capacity of artificial intelligence systems will lead to its greater use across a number of applications within the financial world—from AI trading, wealth management, accounting, financial forensics, and more. All regimented or codified tasks and professions will see greater automation, leading to dramatically reduced operating costs and sizeable layoffs of white-collar employees.
*Blockchain technology will be co-opted and integrated into the established banking system, significantly reducing transaction costs and automating complex contract agreements.
*Financial technology (FinTech) companies that operate entirely online and offer specialized and cost-effective services to consumer and business clients will continue to erode the client base of larger institutional banks.
*Physical currency will disappear in much of Asia and Africa first due to each region’s limited exposure to credit card systems and early adoption of internet and mobile payment technologies. Western countries will gradually follow suit. Select financial institutions will act as intermediaries for mobile transactions, but will see increasing competition from tech companies who operate mobile platforms—they will see an opportunity to offer payment and banking services to their mobile users, thereby cutting out traditional banks.
*Growing income inequality throughout the 2020s will lead to an increase in fringe political parties winning elections and encouraging stricter financial regulations.