Best Practices to Grow Wealth Management Cetera Guide to Growth Series. Location: Diplomat Ballroom 4 Time: 11:30 AM 12:30 PM

Transcription

1 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

2 Think one firm can satisfy every independent advisor? Neither do we. 2 We give you choice with four distinct firms dedicated to supporting A very unique vision of independence- yours. ADVISORS Formerly Muli-Financial ADVISORS NETWORKS Formerly Financial Network FINANCIAL INSTITUTIONS Formerly PrimeVest FINANCIAL SPECIALISTS Formerly Genworth Financial Investment Services Expertise Scale Capital

3 Wealth Constellation Thought Leadership Service Trends Engagement Emerging Market For broker-dealer use only. Not for use with the public. Page 3

4 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 For broker-dealer use only. Not for use with the public. Page 4

5 What If Banks Currently Offering Investment Services Adopted Best Industry Practices? 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. Annual Revenue from Investment Services (billions) For broker-dealer use only. Not for use with the public. Page 5

6 The Banking Industry s Revenue Potential from Investment Services: $22.2 Billion/Yr Annual Revenue from Investment Services (billions) For broker-dealer use only. Not for use with the public. Page 6

7 Integrated Wealth Offering => Maximizes Your Customer s Experience Dr. Kenneth Kehrer For broker-dealer use only. Not for use with the public.

8 Banks Have Traditionally Segregated Retail Brokerage from Trust and Private Banking 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. Retail Brokerage Penetration by Financial Segment For broker-dealer use only. Not for use with the public. Page 8

9 But Trust and Private Banking Clients Prefer to Work with Their Bank 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. Preferred Financial Institution For broker-dealer use only. Not for use with the public. Page 9

10 Banks Are Trying to Capture the Advisory Business of Their Customers 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. Where Trust and Private Banking Clients Have Advisory Accounts For broker-dealer use only. Not for use with the public. Page 10

11 Integrated Delivery of Wealth Management Is Better for the Client and the Bank 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 Change in Customer Loyalty with Additional Services For broker-dealer use only. Not for use with the public. Page 11

12 Integrated Wealth Offering => Maximizes Service Experience Julie Anderson, Program Manager For broker-dealer use only. Not for use with the public.

13 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 For broker-dealer use only. Not for use with the public. Page 13

14 Maximizing Sales & Operations Support Susan Struble Sr. Sales Associate Arisa Petersen Sr. Sales Associate Pat Bray Customer Service Rep For broker-dealer use only. Not for use with the public. Page 14

15 Maximizing Sales & Operations Support Enhanced client experience Increased efficiencies True Team feel Cultivate Seasoned assistants Bank wide automated referral system Econiq For broker-dealer use only. Not for use with the public. Page 15

16 Integrated Wealth Offering => Maximize on Today s Largest Emerging Market Patti Hausherr Director For broker-dealer use only. Not for use with the public.

17 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. For broker-dealer use only. Not for use with the public. Page 17

18 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. For broker-dealer use only. Not for use with the public. Page 18

19 Know General Characteristics are NOT Absolutes #2 - Trust & Communication are key to Women. For broker-dealer use only. Not for use with the public. Page 19

20 Wealth Perspective Security it provides for themselves and family Empowerment Holistic Measurement of Success Power #3 - A Comprehensive Planning Model is conducive to Women. For broker-dealer use only. Not for use with the public. Page 20

21 Integrated Wealth Services => Team Integration and Growing Your Program Through Event Based Marketing Thomas L. Hall, Executive Vice President Wealth Management and Private Bank For broker-dealer use only. Not for use with the public.

22 Growing Your Program Through Event Based Marketing Wealth Management Team Integration Joint Venture Financial Forecast & Budget Monthly Team Meeting Semi-Annual Wealth Management Planning Sessions Consolidated Sales Reporting Collaborative Events For broker-dealer use only. Not for use with the public. Page 22

23 Growing Your Program Through Event Based Marketing The Brand The Experience Targeting the Right Segments Measurement For broker-dealer use only. Not for use with the public. Page 23

24 Growing Your Program Through Event Based Marketing The Brand Name the Program Passport Program For broker-dealer use only. Not for use with the public. Page 24

25 Growing Your Program Through Event Based Marketing The Brand Collateral Intro Letters Calendars Invitations For broker-dealer use only. Not for use with the public. Page 25

26 Growing Your Program Through Event Based Marketing The Brand Interesting Imagery (In the moment) For broker-dealer use only. Not for use with the public. Page 26

27 Growing Your Program Through Event Based Marketing The Brand Become Country Club Conversation For broker-dealer use only. Not for use with the public. Page 27

28 Growing Your Program Through Event Based Marketing The Brand Digital: Web, Social Media For broker-dealer use only. Not for use with the public. Page 28

29 Growing Your Program Through Event Based Marketing The Brand Create Demand (Limit size of Programs and urgency to sign up-perceived value) For broker-dealer use only. Not for use with the public. Page 29

30 Growing Your Program Through Event Based Marketing The Experience Make it Relevant For broker-dealer use only. Not for use with the public. Page 30

31 Growing Your Program Through Event Based Marketing The Experience Experience that cannot be duplicated For broker-dealer use only. Not for use with the public. Page 31

32 Growing Your Program Through Event Based Marketing The Experience Align with the right travel brands and vendors For broker-dealer use only. Not for use with the public. Page 32

33 Growing Your Program Through Event Based Marketing The Experience Attention to detail For broker-dealer use only. Not for use with the public. Page 33

34 Growing Your Program Through Event Based Marketing The Experience Feed the Client s Ego For broker-dealer use only. Not for use with the public. Page 34

35 Growing Your Program Through Event Based Marketing The Experience Don t forget the kids For broker-dealer use only. Not for use with the public. Page 35

36 Growing Your Program Through Event Based Marketing The Experience Build momentum (Pre-Season Receptions) For broker-dealer use only. Not for use with the public. Page 36

37 Growing Your Program Through Event Based Marketing Traditional vs. Non-Traditional Events (Education vs. networking) Customize by Targets The Experience (Other Considerations) Leverage Community Investment Apply same quality and brand standards to all events For broker-dealer use only. Not for use with the public. Page 37

38 Growing Your Program Through Event Based Marketing Customization Targeting the Right Audience Leverage diverse segments/demographics Leverage customer base for new opportunities (Client + Reference = Admission to Event) For broker-dealer use only. Not for use with the public. Page 38

39 Growing Your Program Through Event Based Marketing Measurement Develop process for adding new clients to program Budget to minimize bank expense Build an automated on-boarding program Measure ROI For broker-dealer use only. Not for use with the public. Page 39

40 Growing Your Program Through Event Based Marketing 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 For broker-dealer use only. Not for use with the public. Page 40

41 Growing Your Program Through Event Based Marketing Results 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 For broker-dealer use only. Not for use with the public. Page 41

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43 Q Questions CETERA INVESTMENT SERVICES LLC, MEMBER FINRA/SIPC For broker-dealer use only. Not for use with the public.