• by Judy Warner , January 2, 2007

A boffo performance in 2006 saw Bank of America become this country's first true coast-to-coast bank. It continued to aggressively pursue strategic acquisitions (MBNA and U.S. Trust), develop new products (Keep the Change, Business 24/7), reward customer loyalty ($0 equity trades for accounts with $25,000 or more), and raise its profile both nationally and locally (NASCAR sponsorship).

BofA has its competitors literally seeing red, particularly those New York-based banking dynasties. During the last five years, the Charlotte, N.C. behemoth has built the fifth-largest branch network and grown deposits from less than $400,000 to more than $19 billion in Manhattan alone, according to the Federal Deposit Insurance Corp.

What BofA has achieved in New York is a microcosm of its larger accomplishments. The bank--run by chairman and CEO Ken Lewis--outshined competitors and in July reported a second-quarter net income of $5.48 billion, surpassing that of Citigroup for the first time. In December, it temporarily vaulted past Citigroup to be the biggest U.S. bank based on market value.

The trademark cheery red BofA billboards and ATM locations stand out even in New York's Times Square, and are seen in almost every major market, and at a growing number of cultural, sporting, and community events running the gamut from Carnegie Hall to NASCAR.

Boston-based Anne Finucane was named chief marketer, and ran reviews that resulted in moving BofA's massive $350 million advertising account from the Interpublic Group of Companies to Omnicom Group. BBDO is now BofA's lead creative agency, Ketchum handles public relations, and Prometheus handles media planning and buying.

BofA maintained a steady presence online, on air, and in print of mostly product-specific ads that emphasized its "Higher Standards" tagline that dates back to its buyout by Nation's Bank in 1998. Some TV spots sought to promote BofA's philanthropic initiatives and its ties to local causes.

Bank of America is determined to become a "destination" brand, seeking to be the single financial source for consumers, businesses, and communities regardless of personal objectives, net worth, or investment strategy. Bank of America Corp. wants nothing short of total domination of its customers' finances.

"Reflecting our size and scale, and the capabilities that we deliver domestically and throughout the world, our marketing strategy is singularly focused on supporting and accelerating the growth prospects for our company," Finucane says. "Our ongoing work is meant to evolve Bank of America from a brand everyone knows to a destination brand that everyone--consumers, businesses, and communities--chooses and uses repeatedly because our innovative solutions and understanding of their financial needs create opportunities for them that no other financial services provider can match."

The Keep the Change savings program--one of the most successful new-product launches in banking history--allows customers who enroll to round up debit card purchases to the next whole dollar. The difference is transferred from checking to savings at the end of each day, and the bank matches a portion. By November, some 3 million customers had signed on and saved more than $200 million.

BofA leveraged that program into a community-oriented PR bonanza, linking its support of Little League Baseball with a matching program. Five percent of all Keep the Change transfers made from June 27 to Aug. 26 was given to the Little League Urban Initiative to spruce up baseball fields.

With the integration of MBNA's credit card business in the U.S. and Europe, BofA absorbed some 120 million credit card accounts, and began rolling out affinity-oriented bank cards targeting consumer groups that ranged from doctors to pet owners.

The acquisition of U.S. Trust, announced last month, is expected to take BofA's already strong wealth management business to another level--better positioning it to be the "wealth and investment manager of choice for affluent, wealthy, and ultra individuals and families." Based on assets under management by private banks, BofA says it is currently the second-largest manager of private wealth in the U.S., while U.S. Trust is the fourth. The combined entity will be first, with a total of $261 billion in assets under management.

It's not just the wealthy that BofA is gunning for. A complete overhaul of BofA's online banking site--including the addition of "site keys" as a safeguard to thwart identity fraud--attracted some 20 million users. Of those, more than 50 percent now pay bills online.

To attract and retain business customers, BofA unveiled Business 24/7, a portfolio of easy-to-use products designed specifically for small-business owners that includes an online payroll product. The service is free for any small business that pays its employees by direct deposit with a Bank of America account.

On the philanthropic front, BofA said it would devote $750 billion over the next decade to a community lending program that would help transform neighborhoods with loans, philanthropy, and volunteerism. The strategy is both national in scope yet reaches into neighborhoods where customers do their banking.

That national/local nexus is the platform on which BofA evaluates and executes its myriad corporate sponsorships. Its deal with NASCAR replicates the sponsorship package the bank has in baseball, and illustrates its commitment to--as one bank spokesperson puts it--"execute nationally and deliver locally."

BofA is planning racing-themed mass-market promotions, at-track branding and hospitality, rewards programs for both customers and employees, and business-to-business and cross-promotional opportunities with NASCAR's various sponsor partners and during special NASCAR events, such as the NASCAR Nextel All-Star Challenge, Championship Event and Champions Week.

Now, in addition to backing NASCAR, Bank of America is the official bank sponsor of Major League Baseball, the 2006-2008 U.S. Olympic Teams, and the NFL's Carolina Panthers, Washington Redskins, Dallas Cowboys, and New England Patriots.

As the year drew to a close, Forbes.com recognized "the once scrappy North Carolina regional" as among the best-managed big companies in America--noting that BofA, as the nation's most profitable bank, "earns the most per quarter and is first in deposits, credit and debit card transactions, small-business banking, and, with the recent acquisition of U.S. Trust ... private banking as well."

All that red is turning to black.