Focusing on growth in employee-benefit management, the two biggest wealth management firms, Morgan Stanley (MS.N) and Bank of America Corp (BAC.N) announced the expansion in their services for the coming years. With the new strategies, the two giants are expecting to get market share in the business of managing wealth for companies and employees.
Despite adopting two different levels of strategies, both are investing for the same result, and that is to bring opportunities for the firms to market to younger and middle-class clients.
Morgan Stanley Strategy
Morgan Stanley completed the acquisition of Solium Capital for $850 million. It manages employee stock plans for around 3,400 companies and 2.7 million employees. The acquired firm is renamed as Shareworks.
With the new step, MSN will zero in on deferred compensation management, health savings accounts, and student loan refinancing. To make the strategy robust, the firm is planning to partner with a payroll company.
“With Sharework, it creates value for both the employer and the employee,” said Morgan Stanley’s wealth unit chief operating officer Jed Finn. It also helps the company to get a new source of potential clients, he added.
According to industry experts, Sharework revenue will be less in the beginning but will grab a large margin in the long run.
Steps Of Bank Of America
The breakneck growth in the last two years made Bank of America made the firm ranked at 7th position on PlanSponsor.com’s annual list of 401(k) last year. Besides, the growth in 2019 is far higher than of 2017.
Unlike Stanley Morgan, Bank of America is focussing on retirement services and health service accounts businesses. The two-year growth will enhance the plan.
To Make Global Banking Industry’s Steadier
2007-2009 financial crisis affected the banking industry unimaginably. The after-effects have been haunting the market even after a decade. The two giant companies are set to bring a steadier and robust market with new investments.
Your rate 3 stars is recorded
StartupWorld is the destination to learn about new and upcoming startups making waves on the web. Being an entrepreneur is as much hard work as it is fun. No one knows it better than you do. Share your story, send it in and let us showcase it to the world.