BofA Wants More FAs, Private Bankers in Los Angeles: CEO
Bank of America wants to grow its wealth management market share in the city.
Bank of America is posting financial advisors and private bankers “at a heavy pace” to Los Angeles, where there are untapped wealth management opportunities, according to chief executive officer Brian Moynihan.
The bank has a 7% to 8% share of the Los Angeles wealth management market, Moynihan said Tuesday at the BofA Securities 2021 Banking and Financials Conference.
Moynihan didn’t elaborate on the wealth management opportunities in Los Angeles and the bank’s plans for the expansion of its advisor roster there.
The bank, which responded to FA-IQ's request for more details, says its wealth management businesses, which include Merrill Lynch Wealth Management and BofA Private Bank, represent nearly $450 billion in client balances in California, a significant portion of which are located in the southern part of the state.
These businesses are actively hiring and training the next generation of advisors in California and throughout the country, according to BofA.
BofA says it has hired nearly 90 wealth advisors in the greater Los Angeles area since 2018.
The bank is also hiring experienced advisors in markets where the company sees opportunities for growth among high-net-worth individuals, families and business owners, such as the potential new clients from the sports and entertainment industry in California.
In May, Merrill announced a new wealth management designation program for advisors serving the financial needs of professionals in the sports and entertainment industries. Merrill has exclusive access to the program — which was designed by the College of Financial Planning in collaboration with the wirehouse — until 2022.
‘Powered by Digital’
At this week’s conference, Moynihan also touched on BofA’s digital efforts and how they complement, rather than replace, what financial advisors do.
Wealth management is “an FA-driven business, but powered by digital,” Moynihan said.
The CEO specifically highlighted digital processes that have helped advisors work more effectively, such as electronic document signing.
Last month, Moynihan said during the bank’s third-quarter earnings call that wealth management clients are among the firm’s most digitally engaged. BofA and Merrill Lynch are “driving digital engagement to deliver products and services to the clients,” he said at the time. “You can expect this to continue as we drive towards a ‘Modern Merrill.’”
Do you have a news tip you’d like to share with FA-IQ? Email us at editorial@financialadvisoriq.com.