Wells Fargo Online Financial Services (A) Harvard Case Solution & Analysis

Wells Fargo Online Financial Services (A) Case Solution


Wells Fargo was established in 1852, headquartered in San Francisco and it is the second largest bank in California and largest bank in United States in terms of providing online banking services to its customers. The online financial services (OFS) of the bank provides value addition services by focusing on innovation and customized services. Its target market are38 year old people, whose household income is 75K to 100K, the bank wants to target them by offering key benefits of online access to accounts, which is available 24/7 hours and provide support through online, phone, and email in order to provide excellent customer services. Wells Fargo’s revenue comes from the transaction fees, alliances services return, and interest earned on loan.

Problem Statement:

In past, Wells Fargo often faced problems in performance measurement in this competitive and growing industry. Problems such as deregulation and unparalleled profitability were raised due to adoption of misleading strategy and make the company unable to turn its goals into actions that resulted in losses and increased its cost. Therefore, Well Fargo implemented Balanced Scored Card (BSC) in its OFS in order to measure the financial performance and balance the company’s growth with its effective operations, staff, and profitability by using the optimization strategy. Along with this, BSC would help to manage the strategic vision and focus on retaining customers by hiring skilled employees in the bank.

Need for new approach:

The bank needs a new division that develops services for existing and future customers in order to perform transactions through internet. This provides along term strategy for measuring the performance, not only by improving the financial metric but also it requires change in the culture through investing in new technologies and expansion of its products and services. Along with this, BSC is used as tradition method to measure the performance effectively, communicate the long term view, and helps in decision making. In short, BSC aims to develop combined measures to evaluate the performance and it also communicates and updates the strategy in this competitive environment.

Why Balanced Score Card:

Wells Fargo OFS believes that by developing the BSC in OFS,it will save the cost opportunities and would increase the customers circle and it treated as cost saving center, which provides the strategic view for investment in innovative technology and new product offerings. The BSC provides focus on other multidimensional measures along with improving the financial performance, to meet the company’s goals.

Wells Fargo Online Financial Services (A) Case Solution

Implementation of Balance Score Card:

Wells Fargo arranged the development team, which included five head of departments from the bank and a functional group of middle managers. The bank knew that the effective BSC can be developed by adding the middle managers because they have enough operational management knowledge and it was critical in terms of buy-in standpoint view.

Three strategic themes by OFS during BSC planning process:

1.      Add and retain High Value and high potential value customers:

It plans to increase the customer services in this competitive industry by adding innovative technology and adding features in its product development..................

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