SunTrust Banks Inc. on Tuesday formed specialty divisions within its private wealth management arm to focus on doctors and lawyers - beginning when they are students in professional schools.
The Atlanta banking company, which has a group that offers private banking, lending, and investment management to athletes and entertainers, already has 14,000 doctor and 3,800 lawyer customers. The group serves its customers with 116 advisers spread through 60 markets in SunTrust's footprint from Maryland to Miami.
David Johnson, a senior vice president and head of the medical and legal specialty divisions, said in an interview Tuesday that all banks and money managers want to manage assets for wealthy doctors and lawyers but that SunTrust aims to "manage them through their life cycle," from school to retirement.
His strategy leverages all of SunTrust's capabilities, Mr. Johnson said, by offering unsecured loans to medical students, mortgages to young lawyers, and malpractice insurance. "The wealth management opportunity really comes much later in their lives," he said. "We believe a long-term approach will help us leverage greater assets down the line."
SunTrust has been cultivating doctors and lawyers for 20 years, he said. The company works with 19 of the top 25 medical practices in Nashville and 16 of the top 25 law firms in Atlanta, he noted. SunTrust has an office at Duke University Medical Center, he added, and 85% of its doctors are clients. The company also has offices at the University of North Carolina and Vanderbilt University.
SunTrust has offered private banking services to country music performers since 1988, to race car drivers and team owners since 2004, and to other professional athletes and musicians since March.
Mr. Johnson said the bank will continue to look for specialty groups, possibly including business owners, but "it is not part of our strategic plan right now, though I wouldn't rule it out."
