As clients shift their money around given higher interest rates and recent banking issues, Ameriprise Financial is angling to seize a bigger chunk of that business.
Executives at the Minneapolis-based financial services firm told investors Tuesday they added a new savings product in March and will add a new brokered CD offering in May as well as a new high-yield savings account later in the year.
"We see the opportunity to garner more cash from our clients, bringing it in from their banking institutions now that we'll have some of these products," CEO Jim Cracchiolo told analysts on a conference call after the company reported first-quarter results.
He said some clients would feel more comfortable having those funds at Ameriprise. Others might shift their money from regional banks, which have come under increased pressure amid the recent bank failures of Silicon Valley Bank and Signature Bank, he added.
Ameriprise relaunched its bank in 2019. Unlike a retail bank with branches, Ameriprise's bank is only available to its clients, mainly in its wealth-management business.
The bank has grown rapidly, increasing 51% in the last year alone to more than $20 billion. That makes it Minnesota's third largest bank by deposit size.
Some analysts noted deposit costs are rising and Ameriprise's new offering is one of the latest hints of increased competition for deposits. Deposits at many banks have fluctuated and in many cases have decreased amid higher interest rates, inflation and the recent banking turmoil.
Ameriprise's shares declined 7% Tuesday as market volatility weighed down its first-quarter results. It was generally a down day for stocks with shares of struggling First Republic Bank losing about half their value after it reported a bigger outflow of deposits than expected.
