Banks worldwide are diversifying their product suites by offering low-barrier self-directed investing platforms to target a younger demographic and capture significant market share. Merrill Edge, Bank of America’s self-directed platform, demonstrates a successful case study. With about 9 million leads and referrals exchanged annually across its divisions and a conversion rate of around 40%, they are doubling new assets from inbound referrals year over year. The power of a low-cost acquisition strategy is paying off.
This entry-level service introduces customers to Bank of America’s broader offerings and incentivises future engagement with more advanced financial products as their needs grow. The approach focuses on building long-term client relationships, ensuring sustained growth and loyalty.
As the adoption of embedded investing and financial super-apps grows, it’s a direction that the industry is heading towards. Institutions with vertical and horizontal supply chain ownership can secure lifetime clients by getting customers in the door through low-barrier products.
It’s a smart move that attracts new customers and retains them, fostering long-term financial growth and loyalty.
Contact us to find out how you could deliver the next generation of investment capabilities to your users at terms not seen in Australia before.
