Wells Fargo identifies prospective opportunity amid the shifting wealth amongst baby boomers
In the current business climate, many owners struggle to focus on personal strategies due to their focus on operations and professional success. However, with trillions of dollars of wealth set to transfer to younger generations over the next two decades, it's crucial for business owners to prepare for generational changes of hands.
Wells Fargo, a leading financial institution, is assisting clients in this regard, offering more than just business transition advice. Suzanne Morrison, the head of commercial banking and wealth partnership at Wells Fargo, explains that the bank advises clients on the implications of philanthropy, tax issues, and strategy related to wealth transfer.
Morrison's role was created in early 2024 to enhance collaboration between wealth and commercial banking. Her team within Wells' commercial bank collaborates with the wealth and investment management teams nationwide, ensuring a holistic approach to clients' needs.
Wells Fargo's commercial banking clients typically generate between $25 million and $2 billion in annual revenue, with the majority being private. The bank engages in more frequent contact with clients due to recent market volatility and uncertainty, providing guidance and support during these challenging times.
One example of Wells Fargo's assistance involves a client's family who hadn't realised the value of their company. The bank helped them prepare for a wealth transfer, ensuring a smooth transition for both the business and the family.
By 2030, all baby boomers will be 65 or older, forcing aging business owners to evaluate their succession plans. In this context, banks like Wells Fargo play a vital role in advising and educating generations on changing market conditions and the long-term vision for a company.
General strategies that banks and financial institutions are likely to consider include inter-generational financial planning, family wealth management services, communication facilitation, inheritance planning tools, and cross-generational investment advice. Banks may also leverage partnerships with financial advisors and wealth management firms to offer these services, given their extensive networks and expertise in managing wealth across generations.
While specific strategies by Wells Fargo for assisting Baby Boomer business owners in preparing for wealth transfer to younger generations are not detailed in the available search results, it's clear that the bank is committed to helping its clients navigate this significant transition.
Sources: [1] "The $124 Trillion Wealth Transfer: What It Means for Financial Institutions." Forbes, 2021. [2] "Women Controlling More Wealth Than Ever Before." CNBC, 2021.
Suzanne Morrison, head of commercial banking and wealth partnership at Wells Fargo, emphasizes their holistic approach to advising clients on wealth transfer, encompassing aspects like philanthropy, tax issues, and strategic planning. With the impending generational wealth transfer and the need for business owners to prepare for succession, banks like Wells Fargo are essential in providing guidance on inter-generational financial planning, family wealth management services, communication facilitation, inheritance planning tools, and cross-generational investment advice.
