-- San Francisco, CA, US – August 25th, 2014 /PressCable/ —
San Francisco-Based Bank in Search of New Revenue Sources as Mortgage and Refinancing Dry Up
San Francisco, California (August 22, 2014) – Now that the refinancing boom is over and the mortgage bubble has burst, what is a big bank like Wells Fargo to do to get over its revenue slump? It looks for easier and more passive sources of income that requires little capital, that's what it does.
And that is exactly what Wells Fargo is trying to do. The San Francisco-based bank, the fourth largest in the US, is looking to expand its asset management unit and double its size from US$500 billion to US$1 trillion. The plan, literally dubbed “Big Hairy Audacious Goal,” will be carried out by ramping up sales goals in the US, building up its worldwide sales force, and buying up smaller asset management firms to create a wider range of product offerings.
“It makes sense for a large bank like Wells Fargo to boost its asset management business,” says Edward Brooks, an analyst and spokesperson for CreateCollectProtectWealth.com, an online educational resource on asset management services. “The money flows in steadily and it doesn't require as much capital or effort.”
Wells Fargo is moving into asset management as a way to stop the cash outflow caused by the shrinking of its stock mutual fund. Investors are currently veering away from the more traditional mutual funds to avoid potential losses due to rising interest rates. Wells Fargo's net outflows from its mutual funds amounted to US$1.6 billion in 2013. Overall, the bank's $21.07 billion second-quarter earnings this year were down by 1.5% from last year.
“Wells Fargo wants to sink its hooks deeply into asset management soon,” states Brooks. “It calls its plan audacious, but it doesn't sound like it at all. A behemoth like Wells Fargo may move more slowly than expected but getting where they want to head to is only a matter of time.”
CreateCollectProtectWealth.com is an online educational resource on asset management and asset management services. For more details, please email Edward Brooks at [email protected] or visit http://createcollectprotectwealth.com.
Contact Info:
Name: Edward Brooks
Email: [email protected]
Organization: CreateCollectProtectWealth.com
Website: http://createcollectprotectwealth.com/
Release ID: 60535