As 2025 begins, major wealth management firms are capitalizing on record-high client assets while pursuing strategies to further drive revenue. For example, both Morgan Stanley and Merrill Lynch have revealed plans to increase lending activity and expand the use of alternative investments.

InvestmentNews reports that Morgan Stanley is focusing on cross-selling banking products to deepen client relationships. The firm currently lends to 16 percent of its client households but aims to increase that figure.

Loan balances at Merrill Lynch rose by $12 billion in 2024, driven by growth in custom lending, securities-based lending, and custom mortgages. Advisor's use of alternative investments increased by 11 percent compared to the prior year, further diversifying the firm's revenue streams.

InvestmentNews reports that wirehouses are enhancing resources for advisors, including leveraging artificial intelligence and support teams to streamline banking-related tasks. While efficiency is improving, some advisors remain reluctant to embrace this shift.

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