Bank of America is betting big on its wealth and investment management business, essentially leaning further into the top echelons of the upper class.
The banking giant (No. 17 on the Fortune 500) hosted its first investment day since 2011 on Nov. 5 in Boston. Executives set ambitious goals for the wealth unit: 4% to 5% net new asset growth in Merrill Wealth Management over the next three to five years, and revenue growth nearly twice the rate of expenses, with a target return on allocated capital rising to 30% for the entire segment.
“There is a huge opportunity in the U.S. wealth business,” CEO Brian Moynihan told reporters during a roundtable session on Wednesday. The U.S. boasts over 20 million millionaires, with about 6 million in China, he added.
The U.S. is on the cusp of “The Great Wealth Transfer”—an intergenerational shift expected to move $84 trillion to $124 trillion from Baby Boomers to heirs and charities by the mid-2040s, fundamentally reshaping financial services and families.
Bank of America and other big banks such as JPMorgan Chase and Citigroup are expanding wealth-management operations—competing to retain assets and attract new clients among Millennials, Gen Z, and ultra-high-net-worth families, especially those seeking values-based investing and advanced digital tools.
