IS COUNTRYWIDE A GOOD PARTNER FOR BANK OF AMERICA?

In the past few weeks, reports have surfaced that Bank of America is considering the acquisition of California-based Countrywide Financial, the largest US mortgage lender. With federal laws prohibiting any bank from making an acquisition that would raise its share of US deposits above 10 percent, the acquisition of a mortgage lender like Countrywide would be a creative way for Bank of America to expand its reach within the confines of this law.

To explore the benefits of such a combination, Compete compared online shopping activity for both companies across their mortgage, refinance and home equity products from July through December of 2006. Few consumers research lending products on both sites, indicating a significant opportunity for Bank of America to acquire additional mortgage business through the rumored merger. By acquiring Countrywide’s prospects, Bank of America would see an average gain of 89% more monthly online lending shoppers.

At a regional level, Countrywide receives a larger share of online home lending shoppers than Bank of America in 25 states. Among those states, the largest opportunity for Bank of America lies in Ohio where Countrywide receives more than three times as many lending prospects as

By comparing shopping behavior across competitors, financial services providers can better identify acquisition targets, and understand where new customers are likely to be located.