Bank of America’s private bank is expanding to Grand Rapids in response to the thriving local economy, which has resulted in an increased number of affluent individuals, according to company executives.
Bank of America Private Bank has been catering to high-net-worth clients in West Michigan from its location on the east side of the state for several years. However, due to the thriving local market, Bank of America has decided to expand its presence by opening a private bank office in Grand Rapids. This move not only allows the bank to serve wealthy clients in the area but also aims to capture a larger market share.
According to Brad Harrison, senior vice president and private client adviser for Bank of America Private Bank, Bank of America sees Grand Rapids as a potential area for growth.
After retiring in May 2023, Harrison, who had previously spent almost two decades with Huntington Bank’s private bank in West Michigan, decided to come out of retirement to take on a new role. He was approached by a Bank of America official who expressed interest in his expertise. As a result, Harrison accepted the opportunity to lead Bank of America Private Bank’s newly established Grand Rapids office, which is situated at 250 Monroe Ave. NW in downtown.
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Ever since Harrison joined Bank of America Private Bank last autumn, he has been actively establishing a strong presence in Grand Rapids. As the private bank continues to expand its local business, Harrison mentioned plans to hire additional staff for the Grand Rapids office.
“We’re in the process of gearing up and preparing ourselves,” he stated. “We can now cater to clients from West Michigan, and we have plans to expand and grow in a responsible manner.”
Bank of America Private Bank manages over $600 billion in assets as of the end of 2023. With a presence in 41 markets across the United States, the bank offers comprehensive wealth management services to a diverse range of clients. These include high-net-worth individuals, family offices, and philanthropic organizations. The bank’s services encompass wealth planning, trust and estate management, asset management, portfolio construction, and real estate financing.
Bank of America Private Bank caters to clients who have a minimum of $3 million in investable funds. However, the bank is constantly striving to attract clients with even higher net worth, according to Harrison.
Bank of America aims to expand its private bank into Grand Rapids, capitalizing on the city’s thriving economy and the resulting increase in potential clients.
“Grand Rapids is experiencing remarkable economic growth, making it one of the fastest growing economies in the U.S.,” highlighted Renee Tabben, the Market President for Bank of America in Grand Rapids. She further emphasized that this economic expansion is accompanied by the growth of wealth in the region.
Bank of America is recognized as a global company, equipped with global resources. However, Tabben emphasizes the significance of having a local presence in West Michigan, as people in the region truly value a personal touch.
According to Tabben, the demand for wealth-management services in America is on the rise due to the impending wealth transfer from retiring baby boomers and aging entrepreneurs. This has prompted Bank of America to open a private bank office in Grand Rapids, as part of their efforts to strengthen their presence in the market.
Bank of America’s Merrill Lynch Wealth Management, led by Tabben, operates differently from The Private Bank. Although clients have the option to utilize both services, the private bank primarily caters to individuals and institutions with more intricate requirements in wealth management, according to Tabben.
According to Tabben, Bank of America does not have a specific threshold where clients transition from being served by Merrill to being served by the private bank. The establishment of the private bank office in Grand Rapids is a strategic move that complements Merrill Lynch and allows Bank of America to provide a comprehensive range of services to clients as their wealth grows and their asset management needs evolve over time.
Tabben explained that the goal is to provide a wide range of options to accommodate the increasing number of people they serve. According to him, some clients prefer one method while others opt for the other, and it doesn’t have to be a choice between the two. Instead, it can be a combination of both.
According to Bank of America, the number of high-net-worth individuals in Grand Rapids with $10 million or more in investible assets is expected to grow by approximately 20% over the next five years. This projected growth is expected to expand the potential client base for the Private Bank, as stated by Tabben.
Tabben emphasized the need for increased local coverage and expertise to drive progress. He stated, “If we want to see that happen, we must prioritize local news and understanding of the local economy.”
