Offer Wealth Management, Financial Planning & Investments

Stay Competitive and Retain your Clients

For decades your clients have worked hard, believing their investments would build, assuring them a solid springboard for their financial goals.  They turn to their trusted financial institutions for reliable guidance and advice.  When deciding whether your institution should offer financial services, wealth management and / or financial planning services to your clients, consider the following facts: 
 
Other financial institutions in your market are already likely to be offering these services:

  • 38% of all U.S. banks offer retail investment services*
  • 58% of all U.S. banks with assets greater than 250 M offer investment services*

In your market, the following firms are likely to be competing for your clients, offering checking and savings accounts, loans and other banking products in addition to brokerage and insurance services*:

  • Merrill Lynch/Banc of America Securities
  • Raymond James/Raymond James Bank
  • State Farm Bank
  • Nationwide Bank/Nationwide Financial
  • Ameriprise Financial
  • UBS
  • Met Life Bank
  • Edward Jones

Who controls the client's share of wallet is changing…

In 1980, Banks controlled 51.4% of financial assets and brokerage firms controlled 20.1%*
In 2008, Banks controlled 22.4% of financial assets and brokerage firms controlled 50.1%*

Financial Services can be a meaningful contribution to your bank’s bottom line. 
The numbers don’t lie:

  • 94% of bank investment services programs are profitable**
  • Average profit margin for a Financial Services Program is greater than 30%**
  • Average advisor generates $256,000 in revenue**
  • 79% of assets invested come from outside the bank**
  • 29% of customers are new customers to the bank**

In addition to staying competitive with your competition, the value of offering investment services goes beyond the hard dollar revenue contribution.  Households who buy investments and insurance where they bank:

  • are among the institution's most profitable and desirable customers*, and
  • are more likely to stay with the institution than customers with multiple banking relationships*


*Source:  Strategic Business Insights & K&C Partners 2012

**Source:  American Brokerage Consultants 2009

Numbers Don’t Lie

  • 38% of all U.S. banks offer retail investment services*
  • 58% of all U.S. banks with assets greater than $250M offer investment services*
  • In 1980 banks controlled 51.4% of financial assets and brokerage firms controlled 20.1%*
  • Conversely in 2008 banks controlled 22.4% of financial assets and brokerage firms controlled 50.1%*

*As shown in Strategic Business Insights & K&C Partners 2012