What Does the Kehrer Group Benchmarking Data Say?
In a discussion about the barriers to advisors doing more financial planning during the Fall Meeting of the Kehrer Leadership Study Group, Arthur Osman and Holly Grellier suggested that we look at whether reducing the size of advisor books is an effective way to enable advisors to do more financial planning.
We looked at the data from our annual survey benchmarking the investment services business in banks and credit unions. There were 1,803 firms that participated in this year’s survey. We plotted the average number of active plans per advisor against the average number of clients per advisor in each firm.
Firms whose advisors have more clients per advisor have lower active plans per advisor.
But the correlation is weak and not statistically significant.
We also plotted the average share of the institution’s customer or member households with a plan:
Firms whose advisors have more clients per advisor have lower plan penetration of the institution’s customers or members. But again, the correlation is weak and not statistically significant
So, there is weak evidence from the firm level benchmarking data that advisors with smaller books might do more planning.
This analysis is part of a larger study by Kehrer Group sponsored by Raymond James Financial Institutions, Win the Financial Planning Race: Best Practices in Driving Planning Engagement in Financial Institutions. Future Highlighters will examine other levers in the Director’s toolkit, and their efficacy.
Raymond James will be previewing the study findings at a concurrent session at this year’s Annual BISA Conference in Tampa.
“Two Birds, One Stone: How Managers Have Encouraged Advisors to Embrace Financial Planning and Insurance Services”
Featuring: Grace Austin, Scott Bernstiel, Jason R. Friday CFP®, MPAS®, RICP®, CMFC, CRPC, CEPA®, and Jim Nickens
Tuesday, March 3, 1:45pm-2:30pm ET
About Raymond James Financial Institutions
Advisors in the Raymond James Financial Institutions Division are generating, on average $890,000 in revenue, driven by the services that only a full-service broker-dealer can provide — including investment banking services, wealth and longevity planning, robust technology tools, curated advisor training, and a specialized financial institution support team — all of which help partners grow their investment programs, deepen relationships, integrate within the broader banking teams, and generate higher revenue per advisor.
About Kehrer Group
Kehrer Group is the bank and credit union financial advice community’s trusted partner for original thought leadership, insight based on data, and strategies that drive success. Kehrer Group’s legacy of research and analysis has advanced the delivery of investment services in banks and credit unions and shaped the industry into what it is today. Kehrer Group’s principals meld the wisdom gained from its long history in the industry with cutting-edge analytics, data that is robust and diverse, and a deep understanding of the key drivers of performance.
Learn more about what we do.