Bank of America Emerges as New Nationwide Bank Following $43 Billion Merger

Strategic Insights -

The new bank created by the merger of NationsBank and BankAmerica Corp. will be known as Bank of America in most places, with Florida being the last state to adopt the name change, expected to take several years to complete. The Barnett Bank branches purchased by NationsBank will be renamed NationsBank one week from today, with the name change to Bank of America scheduled for early 2000. Chairman Hugh McColl announced the decision to rename the bank to Bank of America, citing its broader appeal among domestic and international customers.

Key Takeaways:

  • The new bank, created by the merger of NationsBank and BankAmerica Corp., will have 5,000 branches and 15,000 automated teller machines.
  • The bank will be known as Bank of America in most places, except in Florida, where it will remain NationsBank for at least early 2000.
  • Bank of America scored higher among domestic retail customers and international retail and corporate customers compared to NationsBank.
  • The name change on NationsBank buildings will begin in early 1999 and take 12 to 18 months to complete.
  • The Carolinas will be the first region to adopt the new name, with Florida being the last state to make the change.
  • Chairman Hugh McColl will run the new bank for two years, with a management team and board dominated by NationsBank people.
  • NationsBank's computer systems will be used throughout the new bank, ensuring minimal disruption to customers.

Statistics:

  • The merger between NationsBank and BankAmerica Corp. values $43 billion.
  • The new bank will have 5,000 branches and 15,000 automated teller machines.
  • Bank of America scored higher among 5,000 customers interviewed by Corporate identity consultant Anspach Grossman Enterprise in New York City.
  • The name change on NationsBank buildings is expected to take 12 to 18 months to complete.
  • Chairmen Hugh McColl will run the new bank for two years.

Sources:

  • [Advertisement on "Nightline"]
  • [National Press Conference]
  • [Anspach Grossman Enterprise]
  • [Tribune graphic]