Interesting article from the Wall Street Journal about how bankers are starting to help clients with elder care planning. According to article, private banks and trust companies are helping older clients sort out medical bills, hire in home care, or even manage the sale of a home.
Often these types of services are included in the asset management or trust fees that families already pay, but banks are using these types of perks to persuade clients to move assets to an institution to meet their minimum deposit requirements.
For example, Wells Fargo, the nations largest reverse mortgage lender offers it through their Elder Services program. The company charges up to 2% a year in total fees on a $1 million minimum of assets. However, beyond any short-term gains, the services are a way for banks to deepen ties with a family’s younger generations, who otherwise are considered much less likely to stay loyal to a specific financial institution in the long run.
Joseph Coughlin, director of the Massachusetts Institute of Technology’s AgeLab told the WSJ, “This is not just a matter of revenue. This is a matter of developing an intimate, trusted relationship with the client.”
There is clearly an opportunity for reverse mortgages to play in role in these types of services, read more at the link below.