As for the next frontier, crypto is generating interest among the wealthy, especially those looking to diversify their investments.
“Our clients tend to be curious about the entire ecosystem that is developing, from the currencies to the various applications of blockchain technology,” Knox said. “This is clearly a fast developing area of the capital markets and clients want to understand whether they should invest, and the different ways to gain exposure.”
Philanthropy also took off during the pandemic and remains up across the private bank, Knox says. “Many clients are opting to give during their lifetime so they see the impact and can be directly involved with the organizations or individuals they’re supporting,” she said.
Knox’s experience of more than three decades across the bank gives her a unique perspective to share with clients. She’s become one of the most prominent women at Bank of America, occupying a seat on the management team and reporting directly to Chief Executive Officer Brian Moynihan.
Her role is expanding in the new year, with added responsibilities of heading a team of trust specialists as well as leaders in the banking and lending-strategy unit.
NFL Games, Art Basel
Her leadership over the years has touched every unit at the company across commercial, corporate and retail banking. In her current role, Knox is often out entertaining clients—whether over dinner, a private tour of the Rubell Museum at Art Basel in Miami, or in the private box of New England Patriots owner Robert Kraft for an NFL football game. When the Covid-19 pandemic was at its worst, and in-person events were cut, clients opted for video or phone calls with their family members.
Knox has also seen a shift in the way people think about their wealth, and the legacy they’ll leave behind. They “want to live their legacy right now. It doesn’t mean they are not planning for their family. It means they’re giving has increased, their passion around organizations and the impact they can have has increased,” she said.
Clients are also thinking about the next generation. At the private bank, customers have contributed 25% more to trust accounts in the last 12 months than they have in the prior two years, according to Knox. They’re also investing in art, building collections they can use as collateral.
The momentum doesn’t seem to be slowing. The business added more than 3,400 new clients since the beginning of 2020, and growth is now exceeding pre-pandemic levels. Advisors are also being added to match the need. What started as 300 professionals in 2015 has reached 500 and is expected to grow to more than 600 over the next few years.
The private bank represented $625 billion of a total $4.3 trillion in client balances across wealth management at Bank of America during the last quarter of 2021. The unit recorded an all-time high assets under management balance of $360 billion, up 15% from the same period a year earlier.
This article was provided by Bloomberg News.