Bank of America Private Bank offers a wide range of art services. They provide specialized solutions for collectors, including loans against art, estate planning, and consignment services. For institutions, they offer advisory services and investment management. Their broad capabilities cater to various client needs. Bank of America strongly supports the arts, showcased by their sponsorship of Masterpiece Moment, a video series highlighting renowned artworks. They encourage everyone to watch and discover masterpieces from museums around the world.
Art Lending
customer’s art collection represents a significant financial asset that can enhance the flexibility of their overall wealth management strategy. Borrowing against the value of their art collection might allow them to access liquidity, generate capital, or diversify and restructure their portfolio. Moreover, the interest they might incur on an art-related loan is typically lower than the fees for an unsecured loan.
Consignment Services
Whether a collector, heir, or institution chooses to sell a single piece or an entire collection, Bank of America Private Bank can help in organizing consignment agreements with auction houses. They offer their pre-negotiated terms to clients, simplifying the entire process.
Art Planning
Art can present estate planning and legacy opportunities, along with challenges that are crucial to address. They assist clients in viewing their collection as a legacy component, integrating trust, estate, and philanthropic planning, aiming to optimize both the client’s and their art’s appreciation.
Philanthropic Solutions
Arts organizations, along with private and artist-endowed foundations supporting the arts, frequently face challenges in overseeing various facets of their operations, from allocating philanthropic funds to formulating efficient grantmaking tactics and adhering to governance best practices. Bank of America Private Bank offers enduring, strategic planning and solutions, aiding these arts institutions in fulfilling their objectives.
Analysis
Over recent years, this intersection has grown more pronounced, with many financial institutions integrating art-related services into their portfolios. Art has increasingly been seen as a tangible asset class, much like real estate or precious metals. As artworks’ valuations often appreciate over time, especially for renowned artists, they become a form of wealth storage. Recognizing this, many banks have begun offering art-backed loans, allowing collectors to unlock the capital tied up in their artworks without selling them. This provides a new revenue stream for banks and diversifies their collateral types. Additionally, the art world is intricate and requires specific expertise in areas like valuation, authentication, conservation, and provenance tracking. Banks have responded by either hiring in-house experts or collaborating with art consultants to offer advisory services. This not only enhances the bank’s value proposition for high-net-worth individuals but also solidifies their standing as comprehensive wealth managers.
“Art Services: Insights for Individuals and Institutions.” Bank of America Private Bank, www.privatebank.bankofamerica.com/insights/art.html. Accessed 13 Sept. 2023.
