Are Financial Institutions Improving Advisor Coverage

Many financial institutions are trying to increase their advisor headcount to provide better coverage of the branch network and the opportunity in the institution’s client base. However, by the traditional measure of consumer deposits per advisor, they are just treading water. The 201 banks and credit unions covered by this year’s Kehrer Bielan benchmarking surveys had $265 million in consumer deposits per advisor, on average, slightly thinner advisor coverage than the previous year. This despite growing advisor headcount by over 3% during 2017.

 

This is because bank deposits are soaring and growing faster than advisor headcount. We have better visibility into trends in advisor coverage by examining an alternative metric – bank or credit union client households per advisor. By this measure, advisor coverage actually improved 5%. Kehrer Bielan research has consistently demonstrated that the most direct way to grow the business and capitalize on the opportunity among the institution’s client base is to improve advisor coverage. That underscores the importance of working with a broker-dealer that specializes in growing investment programs inside financial institutions.

When Ameriprise Financial Services, Inc. acquired Investment Professionals, Inc., (IPI) in 2017, a new channel called the Ameriprise Financial Institutions Group (AFIG) was formed. It combined IPI’s expertise in serving the financial institutions market with the Ameriprise more than 120-year commitment to clients and depth of resources, creating a powerful offering in the marketplace. Ameriprise Financial Services Inc.,has successfully recruited hundreds of advisors each year, taking a team approach to recruiting -- working with bank leadership to determine optimal advisor coverage, while ensuring a strong fit within the culture of the institution. The executive recruiting team at Ameriprise can also assist when financial institutions are interested in expanding their existing advisor force, or replacing an existing advisor, resulting in an efficient and worry-free process from start to finish for bank leadership.

Ameriprise Financial Institutions Group can help you build an investment program, with the right advisors that will help deepen your long-term client relationships and solidify your position as a full service financial leader in your market. To learn more, contact their team today by calling (800) 679-1237 or visit ameriprise.com/AFIG.

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Kehrer Bielan is not affiliated with Ameriprise Financial.
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Kehrer Bielan conducts 3 separate benchmarking surveys of bank-owned broker dealers, credit unions, and regional and community banks that partner with 3rd party broker dealers. This year’s benchmarking surveys encompass 201 financial institutions, and over 10,000 financial advisors, far more than any other survey of the bank insurance and securities community. The combined benchmarking database provides an unparalleled opportunity to benchmark performance, examine industry trends, and identify best practices.


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