• The Talent Crunch Continues: How Are Firms Responding?

    Kehrer Bielan’s annual benchmarking surveys are in the field and from what we are hearing the competition for quality advisors remains intense.Some firms have responded to the crunch by developing an internal pipeline of talent to supplement their efforts to recruit externally. Interns, sales assistants, associate advisors, and licensed bankers can all be part of a bench team that the firm can draw from to fill vacancies, and sourcing a candidate internally takes less time and is less cost...  Read More...

  • 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....  Read More...

  • Study Finds Banks and Credit Unions Filling Advisor Vacancies Quicker

    In a challenging recruiting environment, financial institutions are now able to find an advisor to fill a vacancy one month faster than three years ago. That was one of the key findings from a recent study – Where Will the Next Generation of Advisors Come From? – a complimentary study sponsored by Cetera Financial Institutions.This year the average number of weeks it took to find an advisor to replace one who left was 16.3 weeks, compared to 20.5 weeks 3 years ago. The shortenin...  Read More...

  • 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...

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