Fintech startups have chipped away at U.S. banks’ customer base for years in everything from wealth management to consumer lending and beyond. Now banks says they’re taking some market share back.
Traditional lenders are seeing the coronavirus pandemic weakening the upstarts that have been challenging them since the last financial crisis, with consumers seeking refuge with larger companies to cope with the outbreak’s economic toll.
Clients are gravitating toward the “biggest, stable institutions,” Morgan Stanley CEO James Gorman said at a conference Tuesday.
“There were some major outages with some of the new online robo players,” Gorman said at Morgan Stanley’s Virtual U.S. Financials Conference. “That doesn’t work. You can’t not access your account for several days.”
Earlier this year, online brokerage Robinhood Markets’ trading platform failed repeatedly as global stocks swung on news about the coronavirus. The glitches spurred some clients to leave the platform for competitors.
Bank of America Corp. customers have opened almost 300,000 new investment accounts on the company’s Merrill Edge platform, consumer and small business head Dean Athanasia said during the conference.
There’s a “flight to quality,” he said. “So we are attracting an awful lot of new clients.”
The client influx goes beyond investing and wealth management. Citizens Financial Group Inc. is gaining market share in mortgages as “a lot of the nonbanks are having some real challenges at the moment,” consumer banking head Brendan Coughlin said Tuesday.
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
