• Financial Institution Securities Community Shares Best Crisis Management Practices

    The Kehrer Bielan team facilitated a conference call on March 25th to help the participating firms manage through this time of uncertainty. The call channeled the spirit of our community’s long history of collectively benefiting when coming together to help one another. The health and safety of everyone through this unprecedented time was the priority on everyone’s mind.   Read More...

  • Investment Services in Smaller Institutions Expected to Weather the Coronavirus Storm Better than Bank-owned Broker Dealers

    Annual Checkup Offers Clues to Impact of Crash in Equities MarketThe last market downdraft—during the last quarter of 2018—cast its shadow over the performance of the investment services business in banks and credit unions all during 2019. According to the Kehrer Bielan Annual Industry Checkup, the severe decline in asset valuation was reflected in a sharp reduction in fees on assets under administration in the first quarter of 2019. As the markets came back, accelerating later ...  Read More...

  • Myth Busters: Harnessing the Consumer View

    Misconceptions are everywhere.Among many advisors and product managers, the perception exists that selling annuities to a client creates less loyalty than other products and services. Annuities, some argue, are a transaction product, not a relationship product.In the c-suites of many financial institutions, the belief exists that the institution’s investment services business is not worthy of investment, because the profit contribution of the business is de minimis.But both of these views ...  Read More...

  • Tackling the Challenge of Integrating Trust and Brokerage

    Many banks and credit unions have been disappointed in the performance of the ways that they serve the wealth management needs of their clients.A recent Kehrer Bielan study found that the 20 largest BISA member institutions have captured only about 7% of the investable assets of their respective customer bases.Growth has been slow, with Asset growth just tracking market valuations,Revenue below plan in many institutions, andResulting pressure to reduce expenses to compensate for flat revenue.But...  Read More...

  • Visualizing the Impact of Planning on Advisor Production at BISA 2020

    Banks and credit unions are looking to financial planning to differentiate their advisors in an increasingly commoditized market for financial advice, develop deeper relationships with clients, and document that the advice they provide is in the client’s best interest. Are they succeeding?The midterm report card is disheartening. The typical branch-based advisor works on less than two plans a month, while having over 400 client households in their book.The usual path to improving performan...  Read More...

  • Separate P&Ls Reinforce Wealth Management Silos

    Executives Ponder Dismantling Barriers to IntegrationParticipants in the 2nd annual meeting of the Kehrer Bielan Wealth Management Study Group discussed the fragmented landscape of the delivery of wealth management in financial institutions, and agreed on an important barrier to integration—the practice of each component business line in the wealth management umbrella maintaining its own profit-and-loss statement.Managers responsible for each P&L are rewarded for improving its performa...  Read More...

  • Study Provides First Benchmarks for Personal Wealth Management in Financial Institutions

    Banks and credit unions have been disappointed in the performance of their fragmented approach to wealth management, capturing only a small share of their clients’ investable assets and losing market share to other providers of financial advice. Given the fragmented reporting structure, it is difficult to even measure how the entire institution is serving the financial needs of its customer or member households. Trust organizations tend to serve both individual and institutional clients, a...  Read More...

  • Study Confirms Shift of Investment Services from Retail Bank to Wealth Management Structure

    A new Cetera-sponsored study confirms the decades long shift back and forth in where the investment services business reports in the financial institution’s organizational structure.According to the Annual Consumer Investments Study conducted for the Consumer Bankers Association by Kenneth Kehrer Associates, in 1995 only 29% of investment services units in financial institutions were housed in the retail or consumer bank. That share grew year after year, reaching a peak of 49% in 2007, acc...  Read More...

  • A Greater Guarantee

    Advisors Receive a Raise in 2020An important component of 2020 advisor incentive plans is the new FLSA Rule which raises the minimum salary thresholds for exemption from overtime pay starting January 1, 2020. To qualify for the exemption, employees generally must be paid not less than $684 per week ($35,568 annually) on a salary basis. Being paid on a “salary basis” means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less freque...  Read More...

  • Their Wealth Management Businesses Continue to Disappoint Financial Institutions

    Asset and Revenue Growth Fall ShortParticipants at the Kehrer Bielan Wealth Management Study Group in Chapel Hill last week confronted an uncomfortable reality – the collective wealth management businesses in financial institutions continue to disappoint the C-suite in their host institutions. Looking at the collective asset and revenue growth of all of an institution’s separate wealth management businesses – retail brokerage/investment services, Personal Trust, and asset manag...  Read More...

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