Bank of America (NYSE:BAC) Pursuing "Mass-Affluent" Via "Merrill Edge"

Seeking to woo what they identify as the "Mass-Affluent," Bank of America (NYSE:BAC) developed a program in the summer called Merrill Edge to attract those with $50,000 to $250,000 to invest.

Eventually it could have a major impact not only on the company, but on discount brokers, who have largely only competed among themselves for that market.

The major brokerages have focused in the past on those customers able to buy products which generate higher margins. Apparently that market has matured, and Bank of America, and probably other major banks, are taking note of the huge market being tapped by the upstart online discounters.

Much of this isn't only about building assets though, but also a defensive move to retain those would otherwise migrate to the online discounters.

Long term, it's also a way to help their customers build up their wealth at that level, while retaining them, and then upselling them to higher-margin products as their wealth accumulates.

Bank of America was trading at $14.33, up $0.09, or 0.63 percent, as of 2:32 PM EST.