The new breed of investors are an interesting lot. They’re technologically savvy, social, and distrusting in many ways. This has led many to the ‘self service’ type models, where they can seemingly choose and invest on their own. While this market has been dominated by smaller firms and discount brokers, there may be a new behemoth expanding in the field, Bank of America (NYSE: BAC).
In a new push to compete with retail brokers Fidelity and Charles Schwab, Bank of America Merrill Lynch is expanding its online brokerage business and planning to hire an additional 600 financial solutions advisors in the next three years. The company currently has 100 FSAs for the venture, Merrill Edge Advisory Center, said Rich Steinmeier, managing director of the center. Merrill Edge grew out of a phone and customer service platform for retail investors built in 2000 for customers with less than $250,000 in assets to invest. This is a large and growth swath of the population. As the ultra wealthy gravitate towards hedge funds and private investing, this may be a big opportunity in the coming years.
“The primary distinction between this role and an advisor is the FA’s client base is wealthier and has complex needs,” said Rich Steinmeier, managing director of Merrill Edge Advisory Center. “Our clients have more basic investing needs but still require advice.”
