Wells Fargo Success Story - Financial Services & Online Banking

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A financial system is very crucial for any country, as it regulates all monetary things. The financial services industry, without a doubt, is one of the biggest industries that exist today.

If we look back at history, it was the Gramm-Leach-Bliley Act, which allowed various types of companies operating in the U.S. financial services industry at the time to merge, that was passed in the late 1990s, and it contributed to the term "financial services" becoming more common in the country.

One such financial services company is Wells Fargo. It is an American multinational financial services company, that has its headquarters in San Francisco, California. The firm is also one of the "Big Four Banks" of the US, along with JPMorgan Chase, Bank of America, and Citigroup.

In this article, you will learn about Wells Fargo, one of the most prominent financial institutions in the United States, its visionary founders, its innovative business model, notable investments, and much more.

Wells Fargo - Company Highlights

  • Company Name-Wells Fargo & Company
  • Headquarters-San Francisco, California
  • Sector-Financial Services
  • Founders-Henry Wells, William George Fargo
  • Founded-1852
  • Revenue-$73.8 billion (2022)

Wells Fargo - About

  • With nearly $1.9 trillion in assets, Wells Fargo & Company is a diversified, locally focused financial services provider.
  • Established in 1852, the company offers banking, investment, and mortgage services as well as consumer and business financing through more than 7,300 locations, 12,000 ATMs, the internet (, and mobile banking. The company also has offices in more than 40 nations and territories to support its clients who conduct business in the global economy.

Wells Fargo has various subsidiaries, including:

  • Wells Fargo Advisors
  • Wells Fargo Bank, N.A.
  • Wells Fargo Rail
  • Wells Fargo Securities
  • Wachovia
  • First Union
  • CoreStates Financial

In 1998, the original Wells Fargo & Company and the Minneapolis-based Norwest Corporation merged to form the current Wells Fargo. Although Norwest appeared to have survived, the combined company adopted the more recognizable Wells Fargo name and relocated to Wells Fargo's headquarters in San Francisco.

Wells Fargo - Industry

  • The global financial services industry was valued at nearly $23,328.73 billion in 2021. In addition, it is anticipated that the value of this industry will grow from $23,328.73 billion in 2021 to $33,313.50 billion in 2026 at a rate of 7.4%. It is then expected to grow at a CAGR of 6.3% to reach $45,149.00 billion in 2031.
  • The sudden rise of digitization has led to the emergence of financial service software as well. Thus, there is also a demand for workforce optimization solutions to drive the growth of the financial service software market.

Wells Fargo - Founders and Team

  • Wells Fargo & Company was established in 1852 by Henry Wells and William G. Fargo, who together with John Butterfield founded American Express, to offer banking services to California then.

Henry Wells

  • Henry Wells was born in Thetford, Vermont, in 1805. His father, Shipley Wells, was a Presbyterian minister at what is now the First Presbyterian Church of Seneca Falls, New York. His parents had moved to central New York State as part of the Yankee westward migration out of New England.
  • Henry went to school in Fayette and worked on a farm when he was younger. He began working as an apprentice in 1822 for the Palmyra, New York-based tanners, and shoemakers Jessup & Palmer.
  • Before starting in the express industry, Henry Wells worked as a freight agent. By transporting mail for less than the government rate, his companies, which were the forerunners of American Express and Wells Fargo, competed with the United States Postal Service. In the field of higher learning, Wells founded Wells College in Aurora, New York.
  • Henry Wells passed away in Glasgow, Scotland, two days before his 73rd birthday.

William George Fargo

  • William G. Fargo was a pioneer American expressman who also served as Buffalo's 27th mayor from 1862 to 1866, all of which occurred during the American Civil War. When Fargo was 13 years old, he stopped attending school and began delivering mail for his native New York village of Pompey. He started working as a freight agent for the Auburn and Syracuse Railroad in Auburn in 1841, acting as an express messenger between Albany and Buffalo. In 1852, he co-founded Wells Fargo & Company with his partner, Henry Wells.
  • William G. Fargo passed away on August 3, 1881. He is the inspiration for Fargo Avenue in Buffalo, the Fargo Quadrangle at the University at Buffalo, and Fargo, North Dakota.

Charles W. Scharf

  • Charles W. Scharf is the CEO and President at Wells Fargo. He is also a member of the Board of Directors of Wells Fargo & Company. Prior to this, he held leadership positions at prominent organizations. Charles served as the CEO of the Bank of New York Mellon from 2017 to 2019 and was also the chairman of its board. He has also served as the CEO and director of Visa Inc. from 2012 to 2016.
  • Charles has a B.A. from Johns Hopkins University and an MBA from New York University.

Wells Fargo - Startup Story

  • The two founders' passion led them to establish Wells Fargo. It is documented that it was during the technological revolution when Henry Wells and William G. Fargo started their professional lives. An era when more interconnected communities and economies were made possible by trains, canals, and stagecoaches. As a result, there was an increase in demand for trustworthy locations to access money while traveling, as well as safe ways to send payments.
  • Using this opportunity, both the founders established a network of offices from California to New York and all over the world, using their practical experience delivering money and valuables by steamboat, railroad, pony ride, and stagecoach. When the economy was changing rapidly, their network offered customers consistency and support. Through a network of agents, it also started offering fundamental financial services like money orders and fund transfers.
  • By the end of the California Gold Rush (1855), the company was a leading express and banking company in the West, shipping large quantities of gold as well as supplies and mail. Wells Fargo had 6,000 locations connected to its network by 1910, and by 1918, the company had more than 10,000 communities nationwide.
  • Customers wary of transacting with distant partners used Wells Fargo because they knew they could rely on their neighborhood Wells Fargo agent to represent them.
  • During the 1980s and 1990s, Wells Fargo made a series of acquisitions and introduced many subsidiaries. In May 1995, Wells Fargo became the first significant US financial services company to offer Internet banking.
  • Much has changed since the inception of Wells Fargo. Through the ages and every generation, the firm has kept up its tradition of assisting clients in moving forward by offering cutting-edge financial services.
  • The firm even has a dedicated museum, the Wells Fargo Museum, in the same place where it first started its business in 1852, in San Francisco. It has all of its artifacts from the past and information on different people who have helped shape what Wells Fargo is today. One can visit the museum between 10 AM to 5 PM for free from Monday to Friday.

Wells Fargo - Mission and Vision

  • Wells Fargo always had the goal of serving their customers properly by being a reliable financial service provider to all their finance needs.The mission of Wells Fargo is, "helping customers succeed financially"

Wells Fargo - Name, Tagline, and Logo

  • Wells Fargo's name comes from the two founders' surnames; Henry Wells and William G. Fargo.
  • The company goes by the tagline, "It all begins with you".

Wells Fargo - Business Model

  • Wells Fargo offers a broad range of banking and financial products and services to corporates, governments, or institutions. The firm also provides a scope of banking, insurance, investment banking, mortgage banking, retail banking, brokerage, and consumer and commercial finance service through its subsidiaries.
  • The business of Wells Fargo can be divided into three segments:

Wealth & Investment Management

  • Under this, the company offers a comprehensive range of personalized and dedicated wealth management, investment management, retirement strategies, and other services to high-net-worth families and individuals.

Wholesale Banking

  • Wholesale banking provides all the financial solutions to any business operating globally such as commercial banking, commercial real estate, business banking, government, and institutional banking, etc.

Community Banking

  • As the name suggests, community banking offers fully devoted and diversified financial products and services to consumers and medium-sized and small-sized businesses that include; student and small lending businesses, credit and debit cards, savings, etc.
  • The company also has operations in several foreign countries, such as Canada, Latin America, Europe, Asia Pacific, and Africa, where it offers local relationship managers to businesses seeking assistance with their international operations. It has offices in Toronto, Hong Kong, London, Dubai, Singapore, and Tokyo. With more than 20,000 employees, back offices are located in India and the Philippines.
  • To pinpoint the business strategy of Wells Fargo, it has given a platform to its customers where they can easily make use of its services.
  • Customers can use Wells Fargo's services either through an online banking service or its mobile app. They can use these services to move money, schedule recurring payments, manage account information, and apply for financial products without even speaking to anyone from the Wells Fargo staff.

Wells Fargo - Revenue Model

  • Talking about the revenue model of Wells Fargo, the firm generates most of its money by offering a range of private banking and commercial banking services to consumers, with the majority of its income coming from the charging of fees and commissions.
  • In 2022, the company's revenue stood at $73.8 billion.

Wells Fargo - Mergers and Acquisitions

  • Wells Fargo has made several acquisitions to date. The details of some of the latest acquisitions are listed below:
  • In addition, the firm has also merged with some companies.
  • The banking and express divisions of Wells Fargo were split off in 1905, and the company's bank merged with the Nevada National Bank to form the Wells Fargo Nevada National Bank.
  • The Union Trust Company and Wells Fargo Nevada merged in 1923 to form the Wells Fargo Bank & Union Trust Company.
  • The name Wells Fargo & Union Trust was shortened to Wells Fargo Bank in 1954. To create the Wells Fargo Bank American Trust Company, it merged with American Trust Company four years later. In 1962, it went back to being known as Wells Fargo Bank.

Wells Fargo - Philanthropic and CSR Activities

  • Wells Fargo has also established itself when it comes to serving communities and societies through its CSR activities. It offers solutions such as diversity and inclusion, community giving, economic empowerment, environmental and social impact, and so on.
  • The company announced a $1 million donation to the American Red Cross on March 2, 2022, to help refugees from the Russian invasion of Ukraine.
  • Not only this but, the Wells Fargo Foundation made the announcement in April 2022 that it would donate $210 million to advance racial equity in homeownership. The Wealth Opportunities Restored through Homeownership (WORTH) grants, which will be given out with $60 million of the donation, will last until 2025. In order to help minority homeowners, an additional $150 million will be invested in lowering mortgage rates and lowering refinancing costs.

Wells Fargo - Awards and Achievements

  • Wells Fargo was recognized as the Global Best in Service for US Dollar cash management for financial institutions by Euromoney magazine.
  • Wells Fargo was awarded as the Best Private Bank Globally for its philanthropy services by the Financial Times Group.
  • Greater Des Moines Partnership awarded Wells Fargo an Inclusion Award Winner 2021 for supporting diversity, equity, and inclusion.

Wells Fargo - Competitors

Here are the top competitors of Wells Fargo:

  • Goldman Sachs
  • JPMorgan Chase & Co
  • Citigroup
  • Bank of America
  • BNP Paribas

Wells Fargo - Future Plans

  • Even after facing significant challenges and scrutiny in recent years, Wells Fargo is still one of the big four banks in the US. The company has maintained itself and shown potential growth over many years. Furthermore, the company has a strong franchise base with which it can become a leaner organization and continue to preserve its status in the market today. Overall, Wells Fargo's future plans involve maintaining its position as a leading financial institution by making improvements and investments to drive growth.

Wells Fargo - FAQs

When was Wells Fargo founded?

  • Wells Fargo was founded in 1852.

Who started Wells Fargo?

  • Wells Fargo & Company was established in 1852 by Henry Wells and William G. Fargo.

Who is the CEO of Wells Fargo?

  • Charles W. Scharf is the CEO of Wells Fargo.

Where is Wells Fargo's headquarters?

  • Wells Fargo's headquarters are in San Francisco, California.