NEW YORK – Bank of America has unveiled a new art advisory service targeting its wealthiest customers, responding to growing demand from collectors who want to use their valuable artwork as security for major loans.
The financial giant’s decision comes as ultra-wealthy individuals hold approximately $2.56 trillion worth of art globally in 2024, with projections suggesting this could climb to $3.5 trillion by 2030, according to consulting firm Deloitte’s most recent art market analysis. Industry experts anticipate roughly one-third of these collections will change hands to younger family members within the next ten years.
A rising number of wealthy clients are seeking to leverage their art holdings as security for financing, typically to support business investment opportunities. Deloitte’s research shows that 70% of wealth management professionals experienced increased requests for art-backed lending in the past year, with this specialized lending generating $2.3 billion in industry revenue.
The new advisory program will serve high-net-worth customers at both Bank of America and Merrill Lynch, explained Drew Watson, who leads the bank’s art services division. Watson noted in a recent interview that evolving preferences among collectors, whether they’re inheriting collections or entering the market fresh, has created greater demand for professional guidance.
Watson emphasized that Bank of America maintains one of the industry’s most extensive art-backed lending operations, and the consulting service will guide clients in selecting pieces that match their personal preferences while considering potential appreciation in value.
“It’s a very interesting moment to look for new long-term trends in the art market with all the recent change,” Watson stated.
The bank treats artwork not as a traditional investment category within client portfolios, but rather as valuable property suitable for loan collateral. This approach allows collectors to access needed funds without having to part with their prized pieces, according to Watson.
