Investment services have struggled to get a seat at the table where executive decisions are made about institutional strategy and resource allocation, in part because investment services provide such a small direct profit contribution to the overall banking or credit union enterprise. This study demonstrates that the value of adding an investment relationship to an existing banking relationship is much greater than the direct revenue from an investment sale, because the investment relationship increases customer loyalty much more than adding an additional banking relationship. By selling existing clients investment products, the institution will increase the profitability of its banking products because the client will maintain those relationships longer.

Many institutions have underinvested in investment services while they tried to build loyalty by selling additional banking services. The study makes a case that banks and credit unions are leaving money on the table from deposit and credit services by under penetrating their opportunity in investment services.

The Value of an Investment Client to a Bank or Credit Union updates our 2012 study, using the latest data from the MacroMonitor, the gold standard of consumer financial surveys.