Merrill Lynch and Bank of America Ramp Up Cross-Selling Initiative
Wirehouse Merrill Lynch and its parent company, Bank of America, are stepping up efforts to encourage cross-selling between the two businesses, with an offer to cut mortgage rates for some clients who increase their business with either of the two units, according to news reports.
Merrill Lynch has been aggressively pushing cross-selling since last January, when it unveiled new incentives for advisors bringing new accounts and getting clients to use the bank’s services, including loans and deposit accounts.
Now, Merrill Lynch and Bank of America are offering to cut mortgage rates by up to half a percent for increased business to clients with at least $500,000 in deposits or investments, according to InvestmentNews.
Those with at least $250,000 can get cuts between 0.125% and 0.250%, depending on the amount of additional assets, the publication writes. The program is currently available in California, Oregon, Washington, New York, New Jersey, Connecticut and Florida, according to InvestmentNews.
"Our strategy is geared toward deepening relationships and rewarding clients for doing more with us,” a Merrill Lynch spokesman tells the publication.
Aside from boosting business internally, Merrill Lynch’s strategy appears to succeed in luring new clients as well, according to InvestmentNews. One advisor at a rival company who asked not to be named tells the publication that one of his clients went to Merrill Lynch in part because of the mortgage rate offer.
“It’s hard to compete," the advisor tells InvestmentNews.