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Morgan Stanley Wealth Unit’s Bank Gains 80K Clients

By Alex Padalka April 3, 2017

Morgan Stanley Wealth Management’s push into retail bank-like products yielded the wirehouse 80,000 clients in fewer than six months last year, the company says in a press release.

Morgan Stanley also claims 90% of clients using the program find it “more rewarding” than other financial institutions. Introduced in July, the brokerage’s Premier Cash Management program “rewards” clients for managing day-to-day finances with the firm instead of traditional banks, the company says.

The program will be expanded to include typical retail bank features such as a debit card with access to an ATM, direct deposit, check writing, and online bill payment, with the debit card issued by UMB Bank.

Morgan Stanley says it offers additional perks through the program, such as unlimited fee rebates for ATM withdrawals worldwide, which the company says clients find particularly helpful.

The program also has no foreign transaction fees for using the debit card, and includes account fee waivers, the company says.

Clients on the program can access “cash management service professionals” as well as get free credit and identity protection services through Morgan Stanley’s partnership with credit report firm Experian.

Eric Heaton, CEO and president of Morgan Stanley Private Bank, National Association, says the program is meant to round out its investing and lending services. Lending to its wealth management clients has been a focus for the firm since 2014.

Without specifying the changes, the wirehouse says it has expanded the type of accounts and activities that would make its wealth clients eligible for the program.