THE WEALTH BUSINESS – PART TWO

September 29, 2024Posted inWealth Management
Part One of this article highlighted the opportunities embedded in the Wealth business to generate coveted fee income and increase franchise value for your bank. The grim reality, though, is that many banks with a Wealth vertical found the business lacking in terms of overall contribution to the entire enterprise, either in profitability or in deposits. This part will tackle some of the underlying causes for the disappointments many CEOs have expressed with the business,…

THE WEALTH BUSINESS – PART ONE

September 11, 2024Posted inUncategorized, Wealth Management
Last week, our forum season started with the CFO group. One topic that was of interest to all was the wealth business. It’s a fee-income business with outstanding customer loyalty (average attrition is only 5%, and many enjoy a 2-3% attrition). It is subject to market vagaries, which is unfortunate, but overall, it can be very attractive. Unfortunately, the business has a few major problems: ·                     Most strong wealth advisors are poor salespeople, so organic growth…

Executing a Growth Strategy

August 28, 2024Posted inStrategy
There is universal agreement that growth companies generally get the best multiples from the investment community, whether in financial services or elsewhere. While a lift out of a talented group of bankers will give you a growth spurt, it is the elusive, consistent growth everyone seeks. Is there a process or a system you can build into your thinking and management process to increase the likelihood of growth meaningfully? Analysis shows that there must be…