Bank Brokerage Execs See Associate Advisors as the Answer

Participants seemed to be channeling Jeopardy as they explained how they were solving various business challenges during the Spring Tuneup meeting of the Kehrer Bielan study group of executives who manage investment services in banks and credit unions.

Investment Services Executives Discuss Ways to Improve Onboarding

The number of financial advisors working in banks and credit unions declined by 1.1% in 2016, even as the opportunity in investment services for financial institutions continues to grow, suggesting that the industry is ill-prepared to take advantage of the opportunity. That was one of the key findings shared at Kehrer Bielan’s semi-annual study group for executives who manage investment services businesses inside financial institutions, held May 2-3 in Chapel Hill, NC.

The number of banks offering investment services has declined almost every year for the past several years. But the banking industry has been consolidating even faster. As a result, the share of banks offering investment services has increased substantially.

The number of credit unions offering investment services has remained essentially flat for the past several years. But the credit union industry has been consolidating even faster. As a result, the share of credit unions offering investment services has increased substantially.

Inauguration Day is six weeks away, and plenty of uncertainty remains surrounding what action, if any, the incoming administration will take on the Department of Labor’s Fiduciary Rule for qualified retirement accounts. But dramatic changes to financial advisor compensation appear likely to occur regardless of what happens to the Rule. Why? Because many firms want to change the way they compensate their advisors to remove conflicts even if the Rule is repealed.