Kehrer Group Highlighter
The Kehrer Group Highlighter packages some of our most important findings, insights, and commentary into bite-size, digestible articles. We make the Highlighters available for free to the entire financial advice community—a small gesture of appreciation for a community that has done so much to support our work.
The Latest Highlighters
Financial Institutions that Outsource Broker Dealer Functions Have Wider Profit Margins
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...
Show Me the Money:
Trends in Advisor Compensation in Financial Institutions Even before Karl Marx laid it all out, there has been historical tension between labor and capital: who gets the larger share of the pie? The same holds for the financial advice industry: how much of...
New Kehrer Group Study Affirms that Financial Planning Is a Win-Win-Win
Drawing on the rich consumer data in RFI Global’s MacroMonitor, Kehrer Group found that engaging in financial planning is a win for banks and credit unions, a win for their advisors, and a win for their customers and members. From the standpoint of the institution,...
Consolidation of Bank-Owned Broker Dealers Accelerating
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...
Credit Unions with Outstanding Advisor Performance Also Have Best Member Penetration
Thicker Advisor Coverage Drives Penetration Not surprisingly, the advisor productivity in credit unions that were finalists for the 2023 Kehrer Group Top Directors Awards sets them apart from their peers. Average revenue per finalist advisor is 50% higher than the...
Focus by Bank Management on Profit Margins Constrains Growth of Their Wealth Management Businesses
Banks and credit unions commonly use profit margin to assess the performance of their investment services businesses. What are the consequences of this management approach for the health of the business? By comparing the performance of firms with wider profit margins...
Investment Services in Regional and Community Banks Tread Water in Difficult Year
Annual Study Shows Mixed Performance Advisor headcount in the regional and community banks that partner with the third-party broker dealers declined for the third time in the past four years. While the slippage was small—1.8% —it was enough of a setback to...
Bank-Owned Broker Dealers Add Advisors, Experience the Impact on Profits
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...
Financial Institutions Boxed Out of Providing Advice to Affluent and HNW Investors
New data indicate that the wealthier people are, the more likely they are to consult with a professional advisor before making an investment decision. But they are less likely to turn to an advisor in a bank or credit union. These findings are among the insights...
Chasing Affluent and HNW Households Risks Ignoring the Opportunity Down Market
Less than 3% of US Households have at least $3 million in financial assets, but those households own 40% of aggregate household financial assets. That was one of the insights served up by Larry Cohen, director of RFI Global’s MacroMonitor, at last week’s Kehrer Study...