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Huntington National Bank has picked Ameriprise Financial to serve as its new retail investment program provider.
The deal calls for Ameriprise to take over support for the Columbus, Ohio-based regional bank's retail brokerage, investment advisory and insurance operations, the companies announced last week.
The programs have $28 billion in combined assets and 960 advisors, or about $29 million in assets per advisor.
Huntington outsourced the broker-dealer and the other operations partly to get access to Ameriprise technology for advisors and customers, according to Melissa Holding, the bank's wealth management director.
The digital tools will help the advisors provide personalized advice, Holding said.
What it means: The Ameriprise-Huntington deal might be a sign that the cost of developing, updating and protecting the technology systems needed to run a big retail investment program is getting too high even for some big regional banks.
If that's true, the Huntington deal could be the start of a new wave of bank investment deal outsourcing announcements.
The companies: Huntington — a subsidiary of Huntington Bancshares — has $279 billion in assets, with 1,400 branches in 21 states.
Ameriprise is a Minneapolis-based financial services company with 10,000 financial advisors and $1.7 trillion in assets under management, administration and advisement.
Credit: JHVEPhoto/Adobe Stock
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