Bank Brokerage: A Tactical Look at Online Channel Integration

Recently, we held the second installment of our bank brokerage roundtable series in order to continue the fruitful discussion from the March event. We wanted to take a more tactical approach to integrating the online channel into the bank brokerage wealth management strategy. Overall, the discussion was lively and productive. The roundtable participants represented some of the industry’s leading banks and financial services firms.

The conversation – lead by BISRA’s Managing Director and Chief Operating Officer Scott Stathis – touched on some timely and relevant issues that many of the attendees are facing as they look to take their business forward. One of the main points we focused on were client segmentation strategies for bank investments. We examined some data collected by Aite Group and presented by Research Director of the Wealth Management group Alois Pirker and Senior Analyst of the Wealth Management group Sophie Schmitt that showed why it was crucial for bank brokerages to target Gen X and Gen Y investors in order to ensure business growth in the future. What we settled on was that while you cannot ignore the large Baby Boomer population – which is the typical age of E*TRADE and Charles Schwab clients, according to Pirker – you absolutely must also consider what you’re doing to attract the growing Gen X and Gen Y market segment. According to Stathis – bank brokerages who ignore the needs of this younger demographic will be left behind. Following a working lunch, Jim Goodwin, the President of Riperian, walked the attendees through some very tactical frameworks for bank-brokerages looking to integrate the online channel into their offerings.  Goodwin addressed some of the most common pitfalls organizations make when engaging in this process and what are the most important features to consider in order of priority.

This month’s discussion gave everyone some fuel for thought and, hopefully, some practical take-aways. We look forward of the next installment of the bank brokerage roundtable that we’re targeting for Q2 2013.

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