Nov 20, 2023 | Bank BDs, Banks, Business Strategy, Credit Unions
The investment services unit in the typical bank or credit union contributes about 20% of revenue to the institution after operating expenses. Net income contribution margin tends to be lower in broker dealers owned by financial institutions. Kehrer Group found that...
Oct 25, 2023 | Bank BDs, Benchmarking, Industry Trends, Research
New Study Chronicles 20 Years of Mergers and Outsourcing Deals This past year has witnessed an acceleration of the shrinkage of the financial institution-owned broker dealer segment, as banks and credit unions merge or fail, or they outsource the broker dealer...
Sep 12, 2023 | Bank BDs, Research
Advisor headcount in the bank-owned BDs increased for the first time since 2016, according to the 2022/2023 Kehrer Bank Broker Dealer Survey. While the increase was small— 2.5%—the reversal of the slow decline in the advisor force was welcome news, as adding advisors...
Jun 8, 2023 | Advisors, Bank BDs, Banks, Study Groups
The recently published BISA-Cerulli study, Improving Recruitment and Retention Throughout Advisors’ Lifecyles, identified the lack of sunsetting plans for advisors as a weakness in banks and credit unions. Many of the 20 advisors interviewed expressed concern about...
Jun 17, 2022 | Bank BDs, Industry Trends, Research, Third Party BDs
According to this year’s Annual Industry Checkup, banks and credit unions that work with third-party broker dealers once again outperformed their counterparts with affiliate BDs. Gross investment services revenue in institutions affiliated with third-party BDs...
Apr 27, 2022 | Advisors, Bank BDs, Banks, Compensation, Credit Unions, Third Party BDs
Comparing the Performance of Advisors Employed by the Institution or Its BD Partner Financial institutions working with third party broker dealers face a choice of employing and managing their financial advisors or outsourcing the employment and management of the...
