Merrill Lynch’s Latest Game Plan to Court the World’s Rich

It’s all about the cross-sell. 

Merrill Lynch Wealth Management announced a brand new division this week intended to connect the firms’ wealthiest clients with other products in the Bank of America network, according to a press release. The UHNW Advisory Group will consist of more than 25 specialists who will help advisors create personalized portfolios and direct wealthy clients to in-house services, like custom lending, trust and estate planning, philanthropy, art financing, and family office services. That means gaining larger wallet share from some of the world’s richest clients.

“The goal of this new group is to work alongside advisors to understand the individual needs of each UHNW client,” Rob Romano, who will lead the team and is head of the firm’s Capital Markets Investor Solutions, said in an email. 

Pulling Out All the Stops

Wealth creation has exploded in the US in recent years and that’s creating the need for more advanced financial advice, executives said. The US is outpacing the rest of the world when it comes to millionaires, according to the UBS 2024 Global Wealth Report. That report found America had 22 million people worth at least seven figures in 2023 or almost 40% of the world’s millionaire population. 

“The rapid pace of wealth creation increased the level of wealth for existing and prospective clients, presenting them with new opportunities and challenges,” Brian Partridge, head of Investment Solutions Group Specialists at Merrill, told The Daily Upside.

So plenty of those rich folks want the all-inclusive family office treatment. “Complexity tends to increase along with greater wealth,” Romano told The Daily Upside, adding that alternative investments often become a larger component of one’s portfolio and tax efficiency becomes a top priority. 

Sit Down, Stay A While. Like Merrill, other banks and wirehouses are working on ways to bring more of their clients’ business in-house. Wells Fargo is looking to boost its cross-platform offerings with accounts that link banking, investing, and lending services. It’s becoming a high priority as firms have struggled to cross-sell products to their customers in recent years. A recent Cerulli report found:

• While the number of clients using both bank and wealth management services ticked up slightly to 56% last year, it’s still well below historic averages. 
• Some 70% of customers were using both investing and traditional banking services in 2017.