Boston, MA 08/21/2014 (wallstreetpr) – Wells Fargo & Co (NYSE:WFC) is planning to develop a platform that will be used to accelerate growth in its retail banking business in an age where customers can electronically borrow, make payments and invest from a single account. Since the financial crisis, Wells Fargo has been able to return equity to its shareholders, up by 14.1% in the second quarter from an all-time low in 2010. The company has also achieved an impressive run of 16 quarters of profit.
Acquisitions to Spur Growth in Asset Management
Wells Fargo & Co (NYSE:WFC) is now shifting its focus to the fast growing asset management business that it seeks to grow to one trillion in 10 years. The shift of focus into the asset management business is a reflection of the way commercial banks are trying to evolve while at the same time remaining as banks. Wells Fargo plans to grow this unit through growth potential acquisitions and partnership with larger investors as well as through the development of the latest technology in the financial sector.
The bank is said to be planning to launch its own exchange-traded fund, just as JPMorgan Chase & Co. (NYSE:JPM) did in June. Asset management business continues to attract interest from some of the largest banks in the U.S as it continues to remain lucrative with steady revenue flows and lower capital requirements compared to other sectors in banking. Wells Fargo & Co (NYSE:WFC) is more of a consumer bank than other banks as it continues to offer better investment banking services.
Wells Fargo is seeking to develop a platform like TD Ameritrade currently offered by Toronto-Dominion Bank (USA)(NYSE:TD) that allows consumers to write checks while also managing their whole investments portfolio from a single account online. The future looks set to take place on the cloud where everything is within reach at the touch of a button.
There has also been suggestions that banks like Wells Fargo & Co (NYSE:WFC) are looking on ways of engaging offerings like alternative investment funds that are synonymous with hedge funds.
