Community banks were urged to offer financial advisory services as a way to increase non-loan income in an American Bankers Association webinar Wednesday.
“Financial planning offers huge opportunity for community banks,” said the session’s leader, James MacLeod, wealth management services director for Bangor Savings Bank in Maine.
MacLeod said the biggest financial planning marketing advantages that small banks have over large, stand-alone advisory services or mega broker-dealer/investment advisory companies are the current chaos in the markets and the fact community banks were unscathed by the financial crisis.
“People have a high degree of comfort moving to community banks,” said the executive at Maine’s largest independent bank, which has $3 billion in assets and 57 branches.
MacLeod said financial planning lets community banks present innovation, education, advice and advocacy to customers in a very relationship-oriented way in very short period of time.
He noted it can be a very powerful addition to the services of banks that currently lack a financial advisory offering.
Small Banks Urged To Offer FA Services To Increase Non-Loan Income
January 22, 2014
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Comments
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Wow. There (correct use of "there" by the way, not "their") are quite a few horrible "advisers" and "planners" in the industry. They want the initial meeting to build their AUM, then not conduct regularly scheduled progress meetings with their clients to build a relationship and monitor performance of their own advice. It does not matter what size of the building an adviser practices in since any adviser who is more interested in their clients' well-being over their own will succeed in all environments, physical and market. By the way, give your clients a simple, diversified portfolio of low-cost ETFs, and don't hammer them on fees for basically doing nothing. You'll sleep better at night.
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The small banks better take a look at the big ones to learn from there problems first to decide if they want to test the water. Considering what the DOL is trying to do regulatory wise they may want to reconsider a move into this arena.