The Benefits of Advisor Teams

The Benefits of Advisor Teams

Previous Kehrer Bielan research demonstrated that banks and credit unions with advisor teams generate much more investment services revenue relative to their opportunity.  The teams are able to provide a tiered level of service, which drives advisor productivity, and they create opportunities to develop less experienced advisors and move advisors out of the branches, all of which augment advisor coverage and grows revenue and profit contribution. Institutions with teams achieve that substantial boost in revenue penetration without increasing their expense ratio.  Consequently, they also experience a lift in profit penetration.  In addition, the team-driven tiered level of service results in much more advisory and insurance business.

We propose to dive deeper into the dynamics of advisor teams by analyzing advisor by advisor data.  This will enable us to isolate the impact of teaming from other factors that drive advisor production, and identify how joining a team will impact an individual’s performance, depending on the advisor’s situation – tenure, client book, and branch territory.

 

Sponsorship Fee:  $30,000