Embrace the Trend… Self-Directed Investing Channel Key to Bank Brokerage Wealth Management Strategy

The consumer landscape is changing. Investors are increasingly looking for more control of the investment process. To capitalize on this market evolution, banks are embracing the online brokerage channel as part of their overall wealth management strategy. If they haven’t done so yet – they may already be far behind. Recently, Scivantage hosted an exclusive half-day bank brokerage roundtable event at the Metropolitan Club inNew York City. Contributors from Aite Group, Kehrer-LIMRA and Riperian shared their latest research and insights into the changing bank brokerage model.  They were joined by peer executives from top financial institutions to openly discuss how best to integrate the online channel into their wealth management strategy to extract the most value for their overall business.

There were several common themes that developed throughout the discussion. The most prevalent was the continued evolution of the full service brokerage model and confirmation that we’re entering a new era for the bank brokerage business. As investors look to get more involved in the decision-making processes regarding their financial portfolios and as new technologies make it easier to gain direct access to investment information, banks are being forced to reevaluate their service models in order to better meet demand and to remain competitive.  Other topics discussed throughout the day ranged from how to best enhance and control the overall customer experience to incorporating multi-touch marketing strategies to breathe new life into “orphaned” or small accounts in order to generate new sources of revenue.

The majority of the executives in attendance agreed that Investors are seeking a more integrated investment experience from their bank.  This experience must go across channels and be flexible enough to support how the Investor may want to conduct business at a given time―from being able to pick up the phone to validate investment decisions with their advisor to being able to quickly move money from one account to another with a few simple clicks in the online portal.  The executives agreed that the customer should never feel that there are restricted to a specific channel and that the service experience should be seamless.  For the banks that can achieve this “uber” experience, they will, ultimately, end up with a more satisfied, profitable client.

From national banks investing billions of dollars in their online channel to regional chains ramping up efforts to expand existing online services, it is clear that the bank brokerage model will look much different in the next 24-36 months.  The self-directed channel offers firms of all types a low cost, minimal support option that can satisfy a wide range of Investor needs, and drive new sources of revenue.

Overall, the roundtable proved very productive. Through open interactive discussions, we were able to identify key opportunities the self-directed investment channel brings to a bank and review implementation best-practices that are driving this emerging trend.

To download the latest research shared by Kehrer-LIMRA during this session, click here.

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