Americans who have between $100,000 and $3 million make up about one-quarter of U.S. households and own three-quarters of all investable U.S. assets. With 8 million of these affluent households as customers, Bank of America has the relationships to build upon. In 2006, the number of Premier Banking clients who have investment accounts with us grew by 10 percent.
Managing the wealth of these customers is more complex than it is for the average consumer, yet few providers serve them effectively, said Pat Phillips, president of Premier Banking & Investments™. To serve them better, Bank of America created Premier Banking & Investments as an alternative to consumer banking and traditional private financial services for the very wealthy.
Phillips explained that customers appreciate having one team manage their complex needs. "When affluent customers move from consumer banking into Premier Banking & Investments, our research shows that on average their deposit balances improve by 8 percent, their loan balances improve by 60 percent and their investment balances improve by 159 percent."
Bank of America invested in the expansion of Premier Banking & Investments by adding 10 percent more client managers in 2006. "That investment will allow us to provide an even better client experience to more affluent Americans," Phillips said.
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2. Opportunities in Serving Affluent Customers
- Tailored solutions and investment services for affluent households
- Trust services for families with assets of $1 million
- Integrated online brokerage and banking capabilities
- Affluent households are growing four times faster than the U.S. population.
- About three-quarters of U.S. personal investable assets are owned by affluent households.
- The affluent market segment is underserved by traditional financial services models.