Bank of America is rolling out a new art consulting service aimed at its wealthiest clients, responding to growing demand from collectors who are increasingly using art collections as collateral for loans and as younger generations reshape the global art market.
The move comes as changing tastes among heirs and new investors alter how art is bought, sold, and financed at auctions and private sales. More high-net-worth individuals are also turning to art-backed borrowing rather than selling valuable works to raise capital.
According to consulting firm Deloitte, ultra-high-net-worth individuals held an estimated $2.56 trillion worth of art globally in 2024. That figure is expected to rise to about $3.5 trillion by 2030. Banks and family offices anticipate that roughly one-third of these artworks will be passed on to younger generations over the next decade, increasing the need for professional guidance around valuation, ownership, and financing.
The growing financial role of art is already visible in lending activity. Deloitte’s report found that about 70% of wealth managers saw higher demand for art-backed loans last year. This segment of credit now generates approximately $2.3 billion in annual revenue, with many borrowers using the funds to invest in business ventures or other assets.
At Bank of America, art consultants will work directly with affluent clients across both the bank and its wealth management arm, Merrill Lynch, according to Drew Watson, the bank’s head of art services. Watson said evolving collector preferences and the arrival of new buyers — including heirs inheriting major collections — are driving demand for more specialised advice.
Bank of America already manages one of the largest art-backed credit portfolios in the industry. The new consulting service will help clients select works that align with their personal tastes while also considering long-term value potential, Watson said.
“It’s a very interesting moment to look for new long-term trends in the art market with all the recent change,” he added.
While art is not formally classified as an investment asset within client portfolios, it is treated as property that can be leveraged to secure loans. Watson noted that many clients rely on art-backed financing to meet liquidity needs without having to sell prized pieces, allowing them to retain ownership while unlocking capital.
The growing intersection of finance and fine art was underscored recently at global auction houses such as Sotheby’s, where works by artists like Pablo Picasso continue to attract strong interest from collectors and lenders alike.
