• Advisor Attrition Down in Bank BDs, Up in Smaller Firms

    Kehrer Bielan research has demonstrated that unwanted advisor attrition costs a firm $2 million when the advisor leaves for another firm, yet financial institutions continue to churn advisors, losing advisors every year and replacing them, only to lose a similar number the following year. The net effect is barely any growth in advisor headcount, despite growing opportunity in the institution’s client base. Data from a new complimentary study by Kehrer Bielan indicates that the large banks ...  Read More...

  • Triage a Work in Progress

    Mystery Shopping Study Finds Spotty Results Implementing Segmentation StrategyFaced with questions about the profitability of small account relationships, how they distract advisors from capturing greater wallet share from affluent clients, and the compliance risk of neglecting the best interest of underserved clients, many financial institutions have developed segmentation strategies to determine who should call, click, or come in. The cornerstone of that strategy is to train the gatekeepers to...  Read More...

  • Advisors See Fewer Referrals As Branch Traffic Shrinks

    The typical advisor in a bank or credit union received 120 referrals from the staff in the branches in the advisor’s territory during 2017, down 30% from the previous year. Declining branch traffic and branch closings are choking off a source of strength for branch-based advisors. While advisors once expected the financial institution to deliver a few referrals a day, now they are receiving just 10 a month.A recent Wall Street Journal article highlighted the impact of reduced foot traffic ...  Read More...

  • Capturing Client Assets

    The Most Important Metric You Probably Don’t TrackAccording to the Kehrer Bielan 2017-2018 Bank Broker Dealer Report, the typical advisor in a bank broker dealer increased production by 6.1% last year to $471,818. While that closely-watched metric was evidence of a strong year, it was inflated somewhat by the outsized increase in the value of assets that generate recurring income. However, another, often overlooked, metric pointed to an even healthier gain.   Read More...

  • Play It Again Sam: Recurring Revenue Accounts for Almost Half of Bank BD Production

    But Focus on Managed Money Constrains Life Insurance SalesLast year 47% of the revenue produced in the banks that own their own broker dealer was from recurring sources. According to this year’s Kehrer Bielan Bank BD Study, the share of investment services revenue from advisory products inched up to 28%, from 26% in 2016. Income from trail commissions and 12b1 fees actually slipped from 20% to 19%.The increase in advisory business came at the expense of a lower share of revenue produced from lif...  Read More...

  • Branch Traffic Down, Referrals Follow

    Survey Tracks Decline in Branch Referrals to AdvisorsA recent Wall Street Journal article highlighted the impact of reduced foot traffic in bank branches, with FDIC data revealing 1,700 branch closings in the 12 months ending June 30th. As branch traffic declines and branches are closed, the opportunity to refer branch customers to the advisor in the branch shrinks.This year’s Kehrer Bielan Bank Broker Dealer Study confirms that trend. In 2017, large banks that own their own broker dealer ...  Read More...

  • Throwing the Baby Out with the Bath Water

    Identifying the Hidden Assets in Your Client BaseIn a recent Kehrer Bielan flash survey, 71% of the 47 participating firms indicated that they are segmenting their client base and limiting access to traditional across-the-desk advisors for clients with small account holdings, typically less than $50,000. But, based on our client level data, many of those customers have investable assets stashed at other firms. Wouldn’t it be helpful to know which clients have significant assets that you ha...  Read More...

  • Our BISA Takeaways

    We look forward to the BISA Annual Convention every year, and we always appreciate being part of a great event. We were particularly pleased to be able to contribute our insights to this year’s conference through many concurrent sessions and the peer group breakout sessions. And we were humbled by the Association’s recognition of our experience and technological achievements.It was a jam-packed conference.   Read More...

  • Year in Review: 2017

    Let’s look at the past 12 months through the lens of some of the surveys we conducted during the year.In our survey of executives who manage investment services businesses in banks and credit unions conducted one year ago, 62% said they expected the Department of Labor’s Fiduciary Rule to be delayed or modified by the incoming administration. Only 3% expected it to be repealed entirely. Today, those predictions look largely correct – the Rule has been modified to be friendlier ...  Read More...

  • Digital Is Still in its Infancy: When Will it Grow Up?

    Among the 47 bank brokerage firms that participated in our recent survey on omni-channel segmentation, one-out-of-five reported having a digital platform where clients can obtain advice. Many more aspire to have a digital advice platform, but that leaves nearly half of the firms surveyed who do not currently have a digital platform and have no plans to deploy one.Large firms are further ahead in developing their digital advice platforms, relative to smaller firms. Among banks that own ...  Read More...

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