Bank of America launches Art Consulting Service as Clients Use Art for Loans

Bank of America officially launched its Art Consulting Service for Private Bank and Merrill clients to help navigate the complex art market and secure financial asset.

Bank of America has announced to launch an Art Consulting Service for its wealthy clients since more rich clients are using their art collection as collateral for loans and as new generations of collectors demand higher prices at art auctions.

In its most recent annual analysis on the art market, consulting firm Deloitte calculated that ultra-high net worth clients had around US$2.56 trillion in art in 2024, and that amount might rise to $3.5 trillion by 2030. Over the next ten years, banks and family offices anticipate that about one-third of those pieces of art may be passed down to younger generations.

According to Drew Watson, Head of Art Services at Bank of America, Art has a profound means of self-expression while also holding significant financial value and so Art collection sits at a unique intersection. He also added that their goal is to bring clarity to the marketplace and help clients make informed decisions, whether they're acquiring their first piece or refining a multigenerational collection.

More customers are interested in using their art collections as security for loans, typically to finance business investments. According to almost 70% of asset managers, the demand for art-based loans increased last year and this type of financing brings in $2.3 billion.  As billion worth of art sold at the most recent New York Fall Auction, Bank of America is strengthening its commitment to assisting customers in making wise selections in this competitive market as collectors increasingly consider art as part of their wealth strategy.

Art Services Specialists Caroline Orr for Merrill clients and Dana Prussian Haney for Private Bank clients will be in charge of the service. By assisting clients in interacting with art fairs, galleries, auctions, and private dealers, the service also provides discreet access to the larger art world. Furthermore, the team provides the client with information to support important decision-making through regular market updates, research, and other resources.