Checkup Findings for 2023


Kehrer Group’s Annual Industry Checkup found that financial institution-based advisors increased their production 3.6% during 2023.  At the same time, banks and credit unions added 1.7% net new advisors, contributing to the 5.5% increase in gross revenue.  For the banks and credit union financial advice community, this was déjà vu all over again.


In his presentation at the BISA Convention, Tim Kehrer reviewed the 8-year trends.  Since 2015, investment services revenue has tracked the growth in advisor productivity, and advisor headcount has essentially been flat.


Why is this important?  Directors of bank-based advisors tend to be given revenue growth goals of 7%-10%.  It is very difficult to achieve those targets with advisor productivity growth alone.  And much of that productivity growth was driven by market appreciation of the assets in managed accounts.


Kehrer Group research indicates that the most sure-fire path to growth for investment services in banks and credit unions is to grow the advisor force and serve the investment advice needs of a larger share of the institution’s customers.  But the market for advisor talent is historically tight, which is why advisor headcount has remained essentially flat for the past decade, despite many banks and credit unions making advisor recruitment a top priority.


“At Financial Resources Group we have found that an effective strategy for recruiting and retaining advisor talent is to prioritize generating qualified leads rather than relying solely on referrals,” said Steve Lank, President. “After experiencing results in alignment with Kehrer Group’s findings, we then implement an effective strategy for bolstering leads for advisors.” Another essential aspect for recruitment and retention involves offering direction for advisors to progress along a defined career path. Starting from junior positions and advancing to retail advisory roles or specialized second-story positions, this trajectory concurrently establishes a pipeline of new talent. Steve added, “It’s also crucial for financial institutions to articulate a compelling value proposition to entice fresh talent, then utilize their internal resources to support recruitment efforts. This approach is instrumental in reducing advisor attrition and reinforcing retention.”


Check out this year’s Checkup.


About the Annual Checkup

Since 2012 Kehrer Group has combined proprietary and industry data to provide an annual review of the health of investment services in banks and credit unions. The data for this year’s report cover 2,450 of the banks and credit unions that provide investment services, which collectively manage 9,360 advisors.  This year’s study is sponsored by Financial Resources Group , Terrapin Technologies, and TruStage.


About Financial Resources Group

Based in Fort Mill, SC, Financial Resources Group is one of LPL Financial’s largest enterprises, providing customized services to financial advisors and financial institutions to help them grow their programs and practices. Representatives are registered through LPL Financial as their broker-dealer.