Businessmodel of BB&T

Customer Segments

BB&T provides a broad portfolio of financial services and banking products and services to individual and business clients. The Company’s customers can be organised broadly into three categories:

• Consumer Clients, including personal banking clients, residential property owners and renters, and other general consumer clients;
• Commercial Clients, including small, medium, and large enterprises and employers across multiple sectors; and
• Institutional Clients, including various large institutional banking clients, as well as a range of government entities and public bodies. BB&T principally serves clients in its domestic market of the US. The Company also has operations in Canada and the UK, however, these operations do not appear to comprise a significant portion of the Company’s overall business activities.

Value Propositions

BB&T provides value to its customers in the following ways:

• Its industry standing and reputation, with the Company established as a reliable providers of various financial services to commercial and individual customers, with a strong track record with customers and a positive reputation in the banking industry;
• Its broad portfolio of products and services, with the Company offering a broad range of services and products, including loan and deposit, mortgage, and insurance services, to consumers, commercial entities, and institutional clients;
• Its accessibility, with the Company serving its clients through multiple channels, including an extensive network of physical branches, as well as various online platforms, including a dedicated digital banking platform; and
• Its industry expertise and experience, with the Company employing a workforce of high-trained financial services and banking professionals, as well as a team of experienced industry executives. ### Channels

BB&T operates a website at www.bbt.com, through which it provides information on its various products, services, and locations. The Company’s website also serves as an online service channel, through which customers can access a range of tools and services, including online banking, online investing, and online tax payment functionality. This principally relates to the Company’s digital banking platform, which includes a dedicated mobile app for iOS and Android devices.

BB&T also operates a network of branches and offices across the US, through which it provides services directly to clients. The Company has a network comprising hundreds of retail branches across 14 US states – including Washington DC – with a significant presence across North Carolina, Virginia, and Florida. Out of these branches, the Company’s dedicated team of in-branch sales and service personnel serve clients directly. The Company serves its commercial and institutional clients largely through personnel operating out of its network of 2,139 banking offices.

BB&T additionally provides various services and products, particularly as part of its insurance operations, through a network of third party agents, brokers, and dealers. These intermediaries work closely with the Company, and provide products and services on its behalf.

Customer Relationships

BB&T provides a range of services to its customers on a self-service basis, primarily through its online and mobile banking platform. This channel allows customers to monitor account activity, pay bills, transfer funds, and access resources without interacting directly with members of the Company’s sales and service personnel.

BB&T provides services directly to consumers and small and medium-sized businesses through its extensive branch network, with its service staff consulting closely with clients in order to provide tailored services that suit their individual requirements. The Company similarly serves larger commercial customers through its in-office personnel, also providing personalised services, seeking to establish longstanding business relationships. The Company’s largest clients are provided their own account management teams.

BB&T provides ongoing support to its clients. Customers are able to contact the Company’s dedicated support personnel over the phone or through a secure message system via the Company’s online banking portal. The Company additionally offers a range of online support resources, such as user guides, FAQs, and fee calculators. Alternatively, customers are able to interact directly with the Company, and follow its operations, through its social media accounts, including with Facebook, Twitter, LinkedIn, and YouTube.

Key Activities

BB&T functions as a financial holding company. It operates primarily through various subsidiary companies, notably its bank subsidiary Branch Banking and Trust Company, as well as other nonbank subsidiaries.

The Company aligns its operations into six reportable business segments: Community Banking, which offers a range of loan and deposit products and other financial services; Residential Mortgage Banking, which retains and services mortgage loans originated by the Community Banking segment, as well as those purchased from correspondent originators; Dealer Financial Services, which originates loans to consumers on a prime and nonprime basis for the purchase of automobiles; Specialised Lending, which comprises the Company’s business units and subsidiaries that provide finance products to consumers and businesses; Insurance Services, which provide property and casualty, employee benefits and life insurance to businesses and individuals; and Financial Services, which provides asset management, and corporate trust services. BB&T principally serves clients in the US.

Key Partners

BB&T works closely with a range of companies and organisations across its operating segments. These partnerships can be organised broadly into the following categories:

• Supplier and Vendor Partners, including suppliers of services, technologies and equipment that supports the Company’s operations across its six operating segments, as well as companies to which certain non-technical functions can be outsourced;
• Channel and Distribution Partners, principally comprising the Company’s network of third party dealers, agents, and brokers, through which its provides certain services and extends its sales and marketing reach;
• Social and Community Partners, including non-profits and charitable organisations with which the Company collaborates on joint various social and community projects; and
• Strategic and Alliance Partners, including market leading companies across various segments with which the Company collaborates on various branding, marketing, and other joint projects. BB&T has launched a number of partnerships in recent years. This includes a specialist insurance broker partnership with Miller Insurance Services, a community partnership with Monarch NC, and a community partnership with Richmond ARC.

Key Resources

BB&T’s key resources are its online platform and digital portals, its IT and communications infrastructure, its network of retail branches and banking offices, its partnerships, and its personnel.

BB&T owns and or leases a number of physical properties across the US. This includes the Company’s office network, its numerous retail branches across a number of states, primarily concentrated in the southeastern and mid-Atlantic US, as well as its numerous insurance agencies and other businesses that occupy facilities.

Cost Structure

BB&T incurs costs in relation to the development of its digital service portals, the maintenance of its IT and communications infrastructure, the operation of its office and branch network, the implementation of marketing and advertising campaigns, the management of its partnerships, the procurement of professional services, and the retention of its personnel.

In 2015 BB&T recorded total no-interest expenses in the amount of $6.27 billion. This includes personnel expenses totalling $3.47 billion, occupancy and equipment expenses totalling $708 million, software expenses totalling $192 million, professional services costs totalling $130 million, and outside IT services totalling $135 million.

Revenue Streams

BB&T generates revenue through the provision of various banking, financial services, and insurance products and services to individual, commercial, and institutional clients. The Company principally derives revenue in the form service fees – including bank card fees, service charges on deposits, and advisory service fees – as well as through certain interest-based income. In 2015 BB&T generated $9.8 billion on a fully taxable equivalent basis, an increase of $384 million compared to 2014.