Bank of America Taps Into the Art World with New Consulting Service

Bank of America launches an art consulting service for wealthy clients, addressing the growing trend of using art as loan collateral. With a projected increase in art holdings, BofA aims to assist clients in selecting art that aligns with their taste and investment goals, tapping into changing market dynamics.

Bank of America is venturing into the art consulting sphere, targeting its affluent clientele as the art market experiences transformative shifts. Catering to the next generation of art collectors, the bank aims to redefine how art interacts with wealth management portfolios.

Increasingly, art is being utilized as collateral for loans, a trend driven by ambitious business ventures and wealth managers reporting growing demand for art-based financial products. Art consultant partnerships at BofA and Merrill Lynch will support clients in navigating this financial avenue, according to Drew Watson, the head of art services at Bank of America.

The consulting service will guide collectors in selecting artworks that match personal taste while also considering their potential value appreciation. As the market evolves, the bank's large art-based credit portfolio aims to meet liquidity needs without necessitating the sale of treasured art pieces, Watson explained.

(With inputs from agencies.)