But Focus On Managed Money Constrains Life Insurance Sales
Last 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 life insurance sales, which fell from 6% of revenue in 2016 to 4% last year. The Bank Broker Dealer Study provides more evidence that the continuing focus on building advisory business has choked off the ambitions of bank BDs to increase their life insurance business.
The 2017-2018 Kehrer Bielan Bank Broker Dealer Survey covered 29 of the 32 largest bank-owned broker dealers, which collectively employ 7,861 financial advisors. This year’s survey was sponsored by Midwood Financial.
About Midwood Financial
Midwood Financial Services, Inc. has rapidly grown to become the nation’s largest independently owned distributor of financial products and services to banks. Midwood is a market leader in the financial institutions channel having distributed over $10 billion in combined fixed and fixed index annuities over the last five years. For more information, please contact Alan Blank at email@example.com