At the Kehrer Group Top Directors Awards ceremony last November, we heard speakers reminding the finalists that financial institutions have the competitive advantage of being the only source for ALL of a family’s financial needs—transactions, savings & investment, risk management, and credit. Would that it were still true.
Non-bank financial services firms are moving briskly to provide credit, along with their other services. Edward Jones is establishing a Utah-chartered, FDIC-insured industrial loan company to provide credit products to its clients. And LPL continues to build out its banking and lending capabilities.
Seems like they have seen the research, from RFI Global and McKinsey, which highlights a resurgence in consumer interest in consolidating their financial affairs and a wiliness to drop providers that do not meet most of their financial services needs.
Among banks, the integration we’ve seen has been centered on melding Trust, Investment Services, and Asset Management into a cohesive wealth management offering. But some have recognized that integrating services to both sides of the client’s balance sheet is key to retaining clients and growing market share. We will explore these integration developments during a breakout session at the Annual BISA Conference, Monday, March 2nd at 3:15, moderated by Cetera’s LeAnn Rummel. Miles Milton (Hancock Whitney) and Bill Moor (Capital City) will describe alternative integration models, and Tim Kehrer will share new findings on benchmarking enterprise-wide personal wealth management in financial institutions.