Existing Bank of America customers could help the bank bring in more business, especially if they don’t have a mortgage with them.
According to Charlotte Observer author Deon Roberts, Steve Boland, head of consumer lending for the Charlotte-based bank, said the bank sees room to put more mortgages in the hands of people who are already its customers. It’s part of the bank’s ongoing strategy to get additional business from existing clients – a key focus for CEO Brian Moynihan.
“We still have a number of clients ... that don’t have their mortgage with us, and they fit in our risk appetite,” said Boland
From the Charlotte Observer:
Bank of America’s pursuit of more business from existing customers comes at a time when revenue growth remains challenging for banks, whose net interest margins have been squeezed by low interest rates. Last year, Bank of America posted a 2% decline in overall revenue.
Putting more products and services in the hands of existing clients is nothing new for banks. Wells Fargo is admired within the industry for its prowess in that area. Last month, the San Francisco-based company reported its retail bank customers had an average of 6.1 Wells Fargo products per household in the fourth quarter of 2015.
Bank of America does not disclose such figures.
The Charlotte observer also reports when asked about Bank of America’s approach to cross-selling, spokesman Terry Francisco said: “We want to be a trusted partner for our customers and clients in the moments when they’re making their biggest financial decisions.”
This comes after Bank of America reported fourth-quarter net income of $3.3 billion, or $0.28 per share, beating analyst expectations by $0.01 in January. Its total mortgage production grew 13%.