Best Practices to Grow Wealth Management – Cetera Guide...
Transcript of Best Practices to Grow Wealth Management – Cetera Guide...
Best Practices to Grow Wealth Management – Cetera Guide to Growth Series
Catherine Bonneau, President/CEO, Cetera Financial Institutions
Dr. Kenneth Kehrer, Kehrer Saltzman & Associates
Julie Anderson, Independent Bank Patti Hausherr, PH Consulting, LLC Thomas L. Hall, Seacoast National Bank
Location: Diplomat Ballroom 4
Time: 11:30 AM – 12:30 PM
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Think one firm can satisfy every independent advisor? Neither do we.
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ADVISORS ADVISORS NETWORKS
FINANCIAL INSTITUTIONS
FINANCIAL SPECIALISTS Formerly
Muli-Financial Formerly Financial Network
Formerly PrimeVest
Formerly Genworth Financial Investment Services
We give you choice with four distinct firms dedicated to supporting A very unique vision of independence- yours.
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Wealth Constellation
Trends
Thought Leadership
Service
Emerging Market
Engagement
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Cetera’s Guide to Growth Thought Leadership Series: Business Intelligence and Roadmap to Realize the Opportunity
1. Recognizing the Opportunities for Growth
2. Optimizing the Advisor-to-Client Ratio
3. Building Your Fee-Based Business
4. Impact of Life Insurance Sales
5. Determining Revenue Potential for a New Program
6. The Broker-Dealer Conundrum: Build, Maintain or Partner?
7. The Value of Referrals
8. How to Maximize the Impact of Sales Assistants and Junior Brokers
9. Maximizing Your Customers’ Experiences Through an Integrated Wealth Management Offering
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What If Banks Currently Offering Investment Services Adopted Best Industry Practices?
Annual Revenue from Investment Services (billions)
Comparing revenue produced from investment services relative to their consumer deposit base is a key industry metric.
If all Institutions achieved deposit penetration equal to the top quartile of industry performance, the industry would almost double its annual revenue from investment services.
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The Banking Industry’s Revenue Potential from Investment Services: $22.2 Billion/Yr
Annual Revenue from Investment Services (billions)
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Integrated Wealth Offering => Maximizes Your Customer’s Experience
Dr. Kenneth Kehrer
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Banks Have Traditionally Segregated Retail Brokerage from Trust and Private Banking
Retail Brokerage Penetration by Financial Segment
Only 29% of Private Banking clients and 17% of Trust clients have purchased an investment product from the bank’s brokerage unit, compared to one-third of all HNW bank customers.
Consequently, Trust clients hold 60% of their assets at brokerage and planning firms and other financial intermediaries; Private Banking clients hold 42% of their assets outside the bank.
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But Trust and Private Banking Clients Prefer to Work with Their Bank
Preferred Financial Institution Trust clients are 4.6 times more likely to have a great deal of trust in banks than wire houses.
Private Banking clients are 4.3 times more likely to have a great deal of trust in banks as opposed to wire houses,
…yet their bank discourages them from working with the bank’s brokerage unit.
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Banks Are Trying to Capture the Advisory Business of Their Customers
Where Trust and Private Banking Clients Have Advisory Accounts
5% of Trust clients own an advisory account, with an average balance of $1.5 million.
15% of Private Banking clients own an advisory account with an average balance of $357,000,
…but banks are letting wire houses have most of that business, because they segregate these clients from their brokerage unit.
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Integrated Delivery of Wealth Management Is Better for the Client and the Bank
Change in Customer Loyalty with Additional Services
Trust & Private Banking Customers want to do more of their financial business where they bank
Creating a brokerage relationship with them not only increases fee income, but it increases loyalty to the bank as well, enhancing the profits of the banking relationships
While enhancing customer experience by serving them the way they want to be served
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Julie Anderson, Program Manager
Integrated Wealth Offering => Maximizes Service Experience
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Maximizing Sales & Operations Support Independent Financial & Insurance Services
Centralized Sales Support System
Program Manager for 16 years
$1.8 Billion in Deposits
70 branches
8.5 Dedicated/Full Time Reps
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Maximizing Sales & Operations Support
Susan Struble Sr. Sales Associate
Arisa Petersen Sr. Sales Associate
Pat Bray Customer Service Rep
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Maximizing Sales & Operations Support
Enhanced client experience
Increased efficiencies
True “Team” feel
Cultivate “Seasoned” assistants
Bank wide automated referral system – Econiq
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Patti Hausherr Director
Integrated Wealth Offering => Maximize on Today’s Largest
Emerging Market
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The Opportunity… Women will control 2/3 of U.S. wealth.
Women will be the beneficiaries of the largest transference of wealth in our country’s history.
Over 40% of all privately held firms in the U.S. are owned by Women.
Women owned firms with $10 MM or more in annual sales have increased 57% over the last decade.
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The Disconnect… Women are most disconnected from financial
services vs. all other industries that touch their lives.
Study ranks financial services 33 out of 33 of businesses that serve Women.
7 of 10 widowed Women leave their financial advisor within the first year of their husbands death.
#1 - Know the opportunity, the disconnect and bring support to your advisors to implement best practices.
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Know… General Characteristics are NOT
Absolutes
#2 - Trust & Communication are key to Women.
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Wealth Perspective
Measurement of Success Power
Security it provides for themselves and family Empowerment Holistic
#3 - A Comprehensive Planning Model is conducive to Women.
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Thomas L. Hall, Executive Vice President Wealth Management and Private Bank
Integrated Wealth Services => Team Integration and
Growing Your Program Through Event Based Marketing
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Wealth Management Team Integration
Growing Your Program Through Event Based Marketing
• Joint Venture Financial Forecast & Budget
• Monthly Team Meeting
• Semi-Annual Wealth Management Planning Sessions
• Consolidated Sales Reporting
• Collaborative Events
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The Brand
The Experience
Targeting the Right Segments
Measurement
Growing Your Program Through Event Based Marketing
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The Brand Name the Program
“Passport Program”
Growing Your Program Through Event Based Marketing
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Collateral
• Intro Letters • Calendars • Invitations
Growing Your Program Through Event Based Marketing
The Brand
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Interesting Imagery (In the moment)
Growing Your Program Through Event Based Marketing
The Brand
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Become “Country Club” Conversation
Growing Your Program Through Event Based Marketing
The Brand
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Digital: Web, Social Media
Growing Your Program Through Event Based Marketing
The Brand
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Create Demand (Limit size of Programs and urgency to sign up-perceived value)
Growing Your Program Through Event Based Marketing
The Brand
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Make it Relevant
Growing Your Program Through Event Based Marketing
The Experience
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Experience that cannot be duplicated
Growing Your Program Through Event Based Marketing
The Experience
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Align with the right travel brands and vendors
Growing Your Program Through Event Based Marketing
The Experience
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Attention to detail
Growing Your Program Through Event Based Marketing
The Experience
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Feed the Client’s Ego
Growing Your Program Through Event Based Marketing
The Experience
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Don’t forget the kids
Growing Your Program Through Event Based Marketing
The Experience
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Build momentum (Pre-Season Receptions)
Growing Your Program Through Event Based Marketing
The Experience
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• Traditional vs. Non-Traditional Events (Education vs. networking)
• Customize by Targets
• Leverage Community Investment
• Apply same quality and brand standards to all events
(Other Considerations)
Growing Your Program Through Event Based Marketing
The Experience
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• Customization • Leverage diverse segments/demographics • Leverage customer base for new opportunities (Client +
Reference = Admission to Event)
Growing Your Program Through Event Based Marketing
Targeting the Right Audience
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• Develop process for adding new clients to program
• Budget to minimize bank expense • Build an automated on-boarding program • Measure ROI
Growing Your Program Through Event Based Marketing
Measurement
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Measure ROI Example: Mexican Riviera Excursion
Customer Group = $6 million in deposits Annual FTP=$140,000 Sale of IMA= $10,000
Total Annual Revenue = $150,000 Out of Pocket Expense=$20,000
Growing Your Program Through Event Based Marketing
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• 60 New Private Banking Relationships Average Deposit Balances of $160m Average Loan Balances of $270m
• 49% lift in Brokerage Revenue • 13% lift in Wealth Kept Appointments • 20% lift in Trust Revenue
Growing Your Program Through Event Based Marketing
Results 2013