401 (K) Savings Plans and Big Banks

Big banks are now fighting for a slice of the $2.9 trillion pie because 401 (k) savings plans are such a money spinner. Bank of America (BAC), Wells Fargo (WFC) and  JPMorgan Chase (JPM) are adding staff, creating easier-to-use technology, and competing on fees in an effort to win a bigger share of the trillions of dollars in 401(k) savings plans, Bloomberg reports.JPMorgan almost doubled its sales force dedicated to selling retirement plan services to employers in 2010, according to Michael Falcon.Falcon’s job as head of retirement in the U.S. and Canada for the bank’s asset management unit was created in January.”It’s one of the top priorities” at JPMorgan, he says. According to Cerulli Associates, a Boston research firm, Americans held $2.9 trillion in 401(k) plans as of September, and the total may reach $4 trillion by 2015.

By: Teni Sow | Senior Editor at Tambapress.com and Regular Contributor to Presspresser.com

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Category: Finance