Margin Mismatch

When Kehrer Group asks investment services directors in banks and credit unions to identify the key metrics they use to manage their businesses, profit margin nearly always makes the list. That is consistent with our experience that most financial institutions want to manage their investment units on profit margin, believing that cost control is key to squeezing increased profitability out of the business. But many in the financial institution investment and insurance community think that approach constrains growth and is a barrier to achieving deeper penetration.

Margin Mismatch: Why Financial Institutions Should Stop Managing the Investment Services Business on Profit Margin (August 2023)

Which is the superior approach? Now, we have the data to find out.

Cetera Financial Institutions commissioned Kehrer Group to analyze our extensive proprietary databases to assess the relationship between profit margin and other objectives of the institution, including revenue growth, penetration of the opportunity, asset acquisition, and client penetration. Thanks to Cetera’s support, we are able to make the study available for free to the entire financial institution investment and advice community. Download your complimentary copy today.

For this analysis, we drew on data from the past four years of our annual benchmarking surveys, encompassing data from 196 financial institutions collected between 2020 and 2023.


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Margin Mismatch


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