On Tuesday, Bank of America Corporation (BAC) announced its plan to hire more than 500 Financial Solution Advisors (FSAs) by the end of this year, bringing the total number of FSAs to about 1,000. This move fits well with BofA’s overall strategy to improve solutions and guidance that are being provided to its ‘preferred customers’ with investable assets of $50,000 to $250,000.
BofA at present has about 8 million preferred customer accounts with an unmatched insight into their financial needs. The new hiring will be in the company’s Merrill Edge division.
Preferred customers usually have investment and banking needs that are quite unique compared with other clients. Some of the top priorities of these preferred clients include access to both banking and investing solutions, better retirement plans and ability to track and manage their money. So, with the hiring of the new FSAs, BofA intends to provide its preferred customers with better guidance and financial solutions to their financial needs. The preferred customers would not only get personal attention from a specialized FSA, but would also receive tailor-made solutions to their specific needs.
BofA stated that the new FSAs would be located in all the major banking centers across the nation, including San Francisco, New York, Dallas, Charlotte, Los Angeles and Washington, D.C. These FSAs will also provide phone-based guidance to the clients.
Apart from hiring more FSAs, BofA has been also trying to enhance its customer services by using improved technology to provide access to small business, investment and mortgage solutions; adding 481 new no-transaction fee mutual funds; introducing mobile-based applications for iPad, iPhone and BlackBerry; and initiating a ‘Platinum Privileges’ program to reward clients, who maintain $50,000 or more in investment or deposit balance, with higher level of services.
Additionally, earlier BofA had announced its plan to hire more than 1,000 small business bankers nationwide to provide small business customers with specialist advice to better manage their finances and business. Hence, this, along with the new FSAs, will lead to a total of 1,500 new employees in the company. Though a small number now, this will expectedly go a long way in creating new employment avenues in the country, which is reeling under high levels of unemployment.
BofA’s plan to hire more FSAs and small business bankers reflects the fact that one of the nation’s major banks is trying to consolidate its banking and investment businesses and offer customized solutions to its clients.
Currently, the shares of BofA retain a Zacks # 4 Rank, which translates into a short-term ‘Sell’ rating. One of the company’s closest peers, JPMorgan Chase & Co. (JPM), retains a Zacks # 3 Rank, which translates into a short-term ‘Hold’ rating.
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