Insurance News

Bank of America wants to step up ‘cross-selling’

Posted on: September 22, 2010

NEW YORK, (Reuters) – Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz) sees more opportunities for its advisers to sell different financial products to its customers, according to an investor presentation by CEO Brian Moynihan on Tuesday.

Its efforts to “cross-sell” products to different parts of its customer base have been driven in large part by its purchase of Merrill Lynch during the financial crisis.

Bank of America since the acquisition closed has tried to sell more of its own products to Merrill customers, such as checking and savings accounts, home mortgages and car loans. Merrill advisers, meanwhile, want to sell their brokerage and retirement services to Bank of America customers.

So far this year, 61 percent of Bank of America’s financial advisers, the majority of whom came from Merrill Lynch, have sold four or more banking products to their clients.

This compares to just 5 percent of advisers who had sold four or more banking products at this time last year when the Bank of America was absorbing Merrill Lynch.

Bank of America’s rich wealth management clients hold $500 billion in deposits at other financial institutions, according to a presentation that Moynihan made to investors in New York.

BofA clients also have $400 billion of mortgages with other firms. Still, Moynihan said that referrals were strong across the franchise.

The company’s advisers have sold 171,690 banking products to wealth management clients so far this year, 60 times more than the 2,821 products sold at the same point in 2009.

The bank is also referring clients to Merrill Edge, its online brokerage offering launched in June. So far this year, it has referred 271,498 clients to the service, which is aimed at clients with $250,000 or less in investable assets.

The wealth management division also has seen a 7 percent increase in its mortgage production over the past year, versus a 30 percent decrease in the overall mortgage market, Moynihan said. (Reporting by Helen Kearney. Editing by Robert MacMillan)

© Thomson Reuters 2010. All rights reserved.

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