Wells Fargo, Bank of America-Merrill Lynch and JP Morgan Chase are the three most popular banks among UHNW investors.
Wells-Fargo has increased its share of the market among Ultra High Net Worth investors, a Spectrem study reveals.
According to Spectrem’s 2013 UHNW Investor: Relationships with Advisors, 20 percent of UHNW investors, with a net worth of between $5 million and $25 million(not including primary residence) use Wells Fargo as their primary bank and that is the top bank used by UHNW investors. Last year, 17 percent of UHNW investors used Wells Fargo.
Bank of America-Merrill Lynch is being used by 14 percent of UHNW investors, and JP Morgan Chase is being used by 13 percent. Both of those percentages are the same from last year’s report.
Citi was the No. 4 bank among UHNW investors with 5 percent, and US Bank was fifth with 3 percent. PNC, which had 6 percent of investors last year, dropped to just 1 percent, and Citi’s percentage actually dropped from 6 percent to 5 percent this year.
Bank of America-Merrill Lynch was more popular than Wells Fargo (17 percent to 11 percent) among investors aged 55 to 64, but Wells Fargo was much more popular than Bank of America (25 percent to 13 percent) among investors aged 65 and older.
Investors aged 47 and under, the youngest segment, are far more scattered in their banking preferences. Twenty-two percent use JP Morgan Chase (which had only 13 percent of all investors), and Citi, Bank of America-Merrill Lynch and Wells Fargo each had 11 percent of investors. The youngest investors also liked Citi (8 percent, with only 3 percent of investors overall).
Bank of America-Merrill Lynch also has 19 percent of the business from the wealthiest ($15 million to $25 million net worth NIPR) segment, with Wells Fargo getting 15 percent, JP Morgan Chase getting 11 percent and PNC getting 6 percent. Among investors with a net worth of between $10 million and $15 million, Wells Fargo had 18 percent and JP Morgan Chase had 17 percent, with Bank of America-Merrill Lynch having only 6 percent.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.