Smart Investment 2: How Investment Services Drives Growth of Banking Services, Supporting a Mass Affluent Strategy

Smart Investment 2: How Investment Services Drives Growth of Banking Services, Supporting a Mass Affluent Strategy
(October 2020)

Last year the Bank Insurance and Securities Association (BISA) and Kehrer Bielan Research & Consulting collaborated on a study to assess the overall impact of an increase in investment services penetration on a financial institution. Analyzing consumer data from a highly regarded, large national consumer study of financial activity, the study—Smart Investment: Evaluating the Total Return on Investment Services to the Banking Enterprise —confirmed that households that have an investment relationship with their bank or credit union exhibit greater loyalty to the institution, use more banking products, and remain customers longer. Consequently, an increase in customer penetration of investment services contributes significant income to the banking business, far more than the direct income from the P&L of the investment services business. 

The second stage of the study examines:

  • The role of investment services in maintaining or growing deposits and lending
  • Investment services penetration of the mass affluent and its relationship to the institution’s mass affluent strategy.

 

For this study, 45 firms provided data on their mass affluent clients, including 13 bank-owned broker dealers, 14 credit unions, and 18 regional and community banks.

To learn more about becoming a member of BISA and obtaining the report, contact bisa@BISAnet.org.

 

The Bank Insurance & Securities Association is the leading financial services industry association dedicated to serving those responsible for the marketing, sales and distribution of securities, insurance, and other financial products and advisory services through the bank channel. Member companies include depository institutions of all sizes, their broker/dealer and mutual fund subsidiaries, third-party marketing companies, product manufacturers and firms providing products, technology or services to support these enterprises. For more information, visit www.bisanet.org.