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.

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

Wealth Constellation

Trends

Thought Leadership

Service

Emerging Market

Engagement


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


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.


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.

Integrated Wealth Offering => Maximizes Your Customer’s Experience

Dr. Kenneth Kehrer


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.


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.


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.


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


Julie Anderson, Program Manager

Integrated Wealth Offering => Maximizes Service Experience


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


Maximizing Sales & Operations Support

Susan Struble Sr. Sales Associate

Arisa Petersen Sr. Sales Associate

Pat Bray Customer Service Rep


Maximizing Sales & Operations Support

Enhanced client experience

Increased efficiencies

True “Team” feel

Cultivate “Seasoned” assistants

Bank wide automated referral system – Econiq


Patti Hausherr Director

Integrated Wealth Offering => Maximize on Today’s Largest

Emerging Market


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.


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.


Know… General Characteristics are NOT

Absolutes

#2 - Trust & Communication are key to Women.


Wealth Perspective

Measurement of Success Power

Security it provides for themselves and family Empowerment Holistic

#3 - A Comprehensive Planning Model is conducive to Women.


Thomas L. Hall, Executive Vice President Wealth Management and Private Bank

Integrated Wealth Services => Team Integration and

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


The Brand

The Experience

Targeting the Right Segments

Measurement



The Brand Name the Program

“Passport Program”



Collateral

• Intro Letters • Calendars • Invitations


The Brand


Interesting Imagery (In the moment)


The Brand


Become “Country Club” Conversation


The Brand


Digital: Web, Social Media


The Brand


Create Demand (Limit size of Programs and urgency to sign up-perceived value)


The Brand


Make it Relevant


The Experience


Experience that cannot be duplicated


The Experience


Align with the right travel brands and vendors


The Experience


Attention to detail


The Experience


Feed the Client’s Ego


The Experience


Don’t forget the kids


The Experience


Build momentum (Pre-Season Receptions)


The Experience


• 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)


The Experience


• Customization • Leverage diverse segments/demographics • Leverage customer base for new opportunities (Client +

Reference = Admission to Event)


Targeting the Right Audience


• Develop process for adding new clients to program

• Budget to minimize bank expense • Build an automated on-boarding program • Measure ROI


Measurement


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



• 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


Results 2013

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CETERA INVESTMENT SERVICES LLC, MEMBER FINRA/SIPC

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