Minneapolis-based Ameriprise Financial is getting in on a $28 billion asset-management business currently run through Huntington National Bank.
Columbus, Ohio-based Huntington’s retail brokerage, investment advisory and insurance services will transition to Ameriprise’s program-support systems, the companies said this week. The bank’s 260 financial advisers will remain employed at Huntington.
Ameriprise Financial Services enters revenue-sharing relationships with banks and credit unions through its investment programs. Ameriprise and Huntington did not disclose the full financial terms of their deal, which is not an outright acquisition.
The “strategic relationship” allows Huntington to offer more wealth-management options to its clients and gives its advisers access to Ameriprise’s “best-in-class” technology and planning tools, company executives said.
“We’ve invested heavily in building capabilities to support large, high-quality institutions — and Huntington’s decision to partner with us reinforces our position as a key player in the space," said Pat O’Connell, an executive vice president at Ameriprise and president of the Ameriprise Branch and Financial Institutions Channels.
Melissa Holding, Huntington’s wealth-management director, said the bank’s advisers will be able to deliver “personalized advice” thanks to Ameriprise’s “cutting-edge technology, digital tools and premium solutions.”
The move comes as regional banks around the country have outsourced some of their wealth management and brokerage business to firms specializing in that field of financial services.
Ameriprise entered similar agreements with Comerica Bank — since acquired by Fifth Third Bank — to manage $18 billion in assets, and last year with Michigan-based ChoiceOne Bank, with a $780 million portfolio.
