Among high net worth investors, Bank of America and Wells Fargo are the preferred institutions used as the primary bank, according to an annual Spectrem study.
Spectrem’s annual examination of advisor usage among affluent investors - Advisor Relationships and Changing Advice Requirements - shows that Bank of America and Wells Fargo are the primary bank of 16 percent each among investors with a net worth between $5 million and $25 million. Eleven percent of these Ultra High Net Worth investors use JP Morgan-Chase, and those three banks are the only ones garnering at least 10 percent of the UHNW investor market for primary banking purposes.
(Forty-two percent of investors selected banks that did not get at least 1 percent of the investors surveyed).
Segmented by age, Bank of America had 18 percent of investors over the age of 64. Twenty percent of the youngest investors – those under the age of 48 – chose Wells Fargo. Among investors between the ages of 48 and 54, JP Morgan-Chase and PNC each garnered 15 percent of the UHNW investors.
The wealthiest investors were more likely to go with a name brand institutions for banking services. For instance, among investors with a net worth between $15 million and $25 million, 20 percent work with Wells Fargo, 17 percent work with Bank of America, 12 percent go with JP Morgan-Chase and 7 percent use Citibank.
Twenty-six percent of Business Owners and 25 percent of Managers use Bank of America, while 22 percent of Professionals use Wells Fargo. Among Senior Corporate Executives, 19 percent use Bank of America, 16 percent use Wells Fargo, 15 percent use JP Morgan-Chase and 7 percent use PNC Bank. Also, 5 percent of Senior Corporate Executives use US Bank.
Five percent of Professionals use Charles Schwab.
There was some change from the bank usage report from 2013. For instance, Wells Fargo dropped from 20 percent overall to 16 percent, while Bank of America increased its UHNW investors from 14 percent to 16 percent. JP Morgan Chase also dropped from 13 percent to 11 percent overall.
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