Jul 13 2009

Fidelity to Launch Push into Banks

By laura lorber

Fidelity Investments plans to ramp up sales through the banking channel and is hiring bank veterans execs as part of the effort, according to American Banker (premium). The company is expected to add products and services for banks as part of a plan to double its assets under administration within five years.

Leading the initiative is Michael K. Clark, president of Fidelity Institutional Products Group. Clark came to Fidelity two years ago from JPMorgan where he had been chief executive of the bank's Worldwide Securities Services business.

While some analysts express skepticism about the new strategy, others point to a growing opportunity since many banks have recently parted ways with their proprietary wealth management businesses. A new self-clearing outsourcing platform for banks and other financial intermediaries is expected from Fidelity's clearing unit National Financial in September.

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