Bank of America continues to push its efforts to cross-sell brokerage products to banking customers -- and vice versa. This week, BofA announced plans to boost Merrill Edge, adding almost twice as many financial advisers to the service for mass affluent consumers.
The cross-selling of banking and investment services took another step forward at Bank of America Corp. today.
The bank plans to nearly double the number of Merrill Edge Financial Solutions Advisors servicing so-called “mass affluent” consumers — those with between $50,000 and $250,000 in investible assets. Most of the new advisers will operate out of banking centers.
Bank of America calls the group “preferred customers,” and according to company spokesman Don Vecchiarello, they are one of the fastest-growing yet traditionally underserved segments of the population. “Our customers in this market segment hold about $5 trillion in deposits and investments across the financial industry,” Mr. Vecchiarello said. “Our goal is to provide them with more personal attention.”
The bank launched the Merrill Edge Advisory Center at the beginning of last year, targeting the consumer segment. The unit offers a platform for self-directed investing and access to a Merrill adviser by phone or in person at a center location. At the end of the first quarter, the client segment held $67 billion in assets, up 4% from the end of last year and 19% from the comparable quarter last year.
The Edge program currently has between 500 and 600 advisers, and an additional 500 advisers will be placed in banking centers across a number of markets, including New York, San Francisco, Los Angeles, Dallas, Charlotte and Washington. In a bid to gain wallet share with these customers and increase the amount of services it provides to them, the bank plans to offer discounts on mortgage originations and deals on credit cards, among other benefits.
“By placing more Merrill Edge FSAs in banking centers throughout the country, we are better equipped to serve our preferred customers,” Cary Grace, preferred-sales executive at Bank of America, said in a press release.
