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Merrill Lynch Announces Beyond Banking®: The Power of Advice for Smarter Cash Management
NEW OFFERING MARKS KEY COMPONENT OF "TOTAL MERRILLSM," A BROAD FINANCIAL MANAGEMENT PLATFORM FOR CLIENTS
NEW YORK, January 8, 2003 — Merrill Lynch (NYSE: MER) today introduced Beyond Banking®, a new comprehensive cash management service that offers all the typical features of a checking and savings account, including ATM access, web bill payment and a variety of short-term investment products. Clients also have access to innovative mortgage, credit and lending products together with the advice and guidance of a skilled Merrill Lynch financial advisor.
With the creation of Beyond Banking, Merrill Lynch rounds out what it believes to be the industry's most comprehensive financial management platform, introduced today as Total MerrillSM. With Total Merrill clients can choose to organize all, or components, of their financial life — from everyday cash management to long-term investments and liabilities — at Merrill Lynch. Today's announcement moves toward fulfilling the company's vision of offering the industry's broadest array of best-in-class products and services accessible through a single point of contact.
"Total Merrill sets a new industry standard by eliminating the complexity and inefficiencies associated with having multiple accounts and multiple contacts," said James P. Gorman, president of the Merrill Lynch Global Private Client Group. "If you look at everything you receive with Beyond Banking and Total Merrill, it is hard to imagine why clients would need a traditional bank account," Mr. Gorman added.
The "Beyond" of Beyond Banking
Beyond Banking, available today in the United States, includes:
- Unlimited check writing
- Direct deposit service
- No-fee web bill payment
- No-fee Visa® debit card
- Refunded ATM withdrawal fees at over 170,000 locations in the U.S. (up to either 100 transactions or $200 value)
- Many waived "nuisance" fees
- Overdraft repayment feature
- No-fee fund transfers between Merrill Lynch accounts and outside accounts
- Online functionality for 24/7 account monitoring and maintenance
- 24/7 access to dedicated client service associates
Clients can also benefit from relationship pricing that allows them to earn higher interest rates on their cash based on the assets they have at Merrill Lynch. Beyond Banking clients incur a $15.00 per month fee for household assets below $100,000.
Beyond Banking is a response to several key trends in individual financial management. First, approximately 78 million baby boomers are nearing retirement and moving from an emphasis on accumulation of wealth to its preservation and liquidity. They are migrating from growth investments to a comprehensive, well-diversified strategy that is not tied disproportionately to the stock market and considers the role of cash and liability management.
Second, the Federal Reserve has reported the amount of money in savings accounts recently rose to $2.75 trillion, an increase of $400 billion alone this year and Merrill Lynch is seeing a dramatic increase in clients requesting effective cash management and cash savings strategies.
"More than 80% of our clients have said they want advice on what to do with their short-term money," Mr. Gorman said. " Beyond Banking addresses this need head-on by giving clients access to a skilled financial advisor."
Beyond Banking builds on the company's highly successful Cash Management Account ® (CMA), which celebrates its 25th anniversary this year.
The Beyond Banking service is covered by the Merrill Lynch Global Privacy Pledge, which describes how the firm protects clients' personal information. Merrill Lynch does not rent or sell its clients' personal information to third parties.
The "Total" of Total Merrill
Total Merrill is the organizing principle for Merrill Lynch's wealth management business. It is based on the premise that investors often think about their money and goals in terms of individual "buckets," but want the benefits associated with integration. With the guidance of a financial advisor, Total Merrill allows clients to gain better control because investments, cash, mortgages, insurance, estate planning and business interests all work together.
"We believe that no other firm can deliver this level of simplification, convenience and advice for comprehensive financial management," Mr. Gorman said.
Total Merrill reflects how clients increasingly turn to Merrill Lynch for products and services beyond buying and selling stocks. For example, Merrill Lynch has relationships with an estimated 800,000 small business owners, is a top 10 originator of jumbo mortgages, and, according to Barron's, is the No. 1 private bank ranked by total assets. In addition, Merrill Lynch Bank USA and Merrill Lynch Bank & Trust Co., with combined retail deposits of $65 billion, ranks among the top 10 U.S. banks based on deposits.
Total Merrill and Beyond Banking are natural extensions of Merrill Lynch's business strategy to diversify revenue and to extend the business model beyond investment-only solutions. The firm has found that banking services deepen client relationships and improve retention.
Merrill Lynch is one of the world's leading financial management and advisory companies with offices in 36 countries and total client assets of approximately $1.3 trillion. As an investment bank, it is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. For more information on Merrill Lynch, please visit www.ml.com.
Contact Media Relations:
Erik Hendrickson 212.449.7293
erik_hendrickson@ml.com