Visa has become the world's most valuable financial services company.
Processes $14.8 trillion in annual transaction volume.
Dominates the credit card market.
The Birth of Bank of America
Amadeo Gianini, an Italian immigrant, founded the Bank of Italy in San Francisco in 1904, which later became Bank of America.
Gianini focused on lending to middle-class and immigrants.
Bank of America became the largest bank with over $5 billion in assets by the 1930s.
Leadership of S. Clark Beise
Beise elected President of Bank of America in 1954.
Expanded services nationwide.
Era of post-war prosperity boosts consumer credit.
The Advent of Credit Cards
Joseph Williams had the idea to create a single general-purpose credit card.
In 1958, launched BankAmericard with a mass mailing campaign in Fresno.
Initial flaw: high delinquency rates and fraud.
Despite this, the concept was proven viable.
Licensing and Expansion
Rudolph A. Peterson saw potential in licensing BankAmericard to other banks.
Banks could issue cards using Bank of America's infrastructure for a fee.
Expansion spread the use of credit cards nationwide.
Challenges with Fraud
Initial fraud with stolen unembossed cards.
System inefficiencies required improvements in security and transaction processes.
Dee Hock and the Formation of Visa
Dee Hock, from Utah, proposes a decentralized, self-organizing network.
Forms National Bank AmeriCard Inc., later Visa.
Visa's model allowed other member banks to use its infrastructure.
Faced internal issues with fraud and external legal pressures.
Growth and Legal Challenges
MasterCard emerges as a major competitor.
Legal battles include anti-trust lawsuits from smaller banks and a major retailer class-action suit led by Walmart.
Visa forced to pay significant settlements.
Huge IPO in 2008 amid financial crisis, raising $17 billion.
Visa's Market Leadership
Visa continues to grow with innovations like Visa Traveler's checks and security features.
In 2023, achieves $33 billion revenue with $17 billion net income.
Processes over $12.3 trillion in payment volumes annually.
Conclusion
Visa remains a dominant force in the finance industry, built on the foundations laid by Amadeo Gianini and shaped by innovative visionaries like Dee Hock.