• Catch and Release: Bank Brokerage Firms Struggle to Recruit and Retain Sufficient Numbers of Advisors

    Investment Services Executives Discuss Ways to Improve OnboardingThe 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 inst...  Read More...

  • More Customers Can Invest Where They Bank Than Ever Before

    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.According to FDIC Call Report data, 1,656 US retail banks report investment fee income, down 29% since 2007.   Read More...

  • More Members Can Invest with Their CU Than Ever Before

    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.955 credit unions partner with the 11 largest 3rd party broker dealers, about the same number reported in 2007.   Read More...

  • Amid DoL Uncertainty, Bank Execs Look to Overhaul Advisor Comp

    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?   Read More...

  • Think Trump Will Scrap the DoL Rule? Bank Execs Disagree

    In the ten days since Donald J. Trump became the president-elect, we have heard hopeful speculation in boardrooms and in the media that the new administration will throw out the Department of Labor's Fiduciary Rule for qualified retirement accounts, set to go into effect on April 10, saving our industry from adapting to perhaps the largest regulatory change it has ever faced.But the executives who run the investment services businesses in banks and credit unions aren't buying the hype.A ...  Read More...

  • Setting Revenue Expectations for Next Year

    When we convened our semi-annual study group of top bank brokerage executives in Chapel Hill last month, one topic immediately emerged as being a top concern for the group – they expect investment services revenue to decline in 2017, but bank management actually expects revenue to grow.The gap in expectations is enormous. The brokerage executives project their firm's revenue to fall 7% to 20% next year due to the disruptions caused by the implementation of the Department of Labor's...  Read More...

  • Advisors' Life Production Up 27% since 2010 in Banks and Credit Unions

    Strong Foundation for Growth under the DoL Fiduciary StandardIn our discussions about DoL readiness with top executives responsible for investment services in financial institutions, it is clear that they plan to focus more on life insurance sales to bolster an expected decline in revenue from commission transactions and lower fees on advisory accounts.  But many are surprised to learn that banks and credit unions have made steady progress in growing their life insurance sales over the past...  Read More...

  • As Goes the Financial Plan, So Go the Assets

    With implementation of the Department of Labor's fiduciary standard for qualified retirement accounts just around the corner, firms are looking to financial planning to help their advisors fulfill their responsibilities under the rule and justify the fees they charge. That was one of the central themes at Kehrer Bielan's recent study group on The New Importance of Financial Planning and Life Insurance After DoL, held last week in Chapel Hill, NC.But the planning specialists and other exe...  Read More...

  • Planning to Sell More Life Insurance?

    Advisors Who Prepare More Financial Plans Produce More Life Insurance RevenueFor decades banks and credit unions have struggled to profitably meet the life insurance needs of their clients.The DoL Fiduciary Standard rule for retirement accounts increases the need to improve life insurance sales, because firms are looking for ways to replace revenue impacted by lower fees and commissions.But selling life insurance just got even harder. Our last Highlighter provided evidence that additional compen...  Read More...

  • Paying More for Life Sales May No Longer Work

    Banks and credit unions have struggled for years to profitably meet the life insurance needs of their clients.Now, the advent of the DoL Fiduciary Standard rule for retirement accounts creates more urgency to improve life insurance sales.  Many product lines are expected to experience fee compression, and a shift to advisory business could result in a short term dip in revenue, so firms are looking for ways to fill the revenue shortfall.The situation appears to be exacerbated by the deterio...  Read More...

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