Deposit penetration benchmark bank advisors kehrer
Benchmarking is an important tool in the financial world. Companies, hedge funds , mutual funds, investors, and other financial bodies pick a specific benchmark in the industry and seek to replicate its returns or to compare its own performance to that of the benchmark. Of course, the company's business plan or investing strategy has to be the same or similar to that of the benchmark to make it a worthwhile comparison. There are of course exceptions to every scenario. The appropriate benchmarks for tracking the banking sector's performance depend on the type of bank. For instance, commercial-only banks are evaluated very differently than retail-only banks.
What Are the Main Benchmarks That Track the Banking Sector?
Many advisors in financial institutions have branch territories that include more banking customers than they can reach out to and have more investment clients than they can serve appropriately. That would also create opportunities to hire additional advisors to cover the branches and clients divested by current advisors. But advisors balk at the suggestion that they abandon hard won clients, and see their existing branch assignments as an opportunity, not an obstacle. To help management resolve this standoff, Kehrer Bielan and LPL Financial Institutions collaborated on a study to determine what size deposit territory and client book optimized advisor performance, employing advanced analytics on a database of 1. This study helps advisors understand that less is more, and empowers management to create a virtuous circle where advisors focus on deepening client penetration, increasing the amount of advisory assets they administer, which enables them to shed additional branch territory and clients, freeing them for even deeper penetration.
Rather, the big story was that this industry, which has seen so much change over the last decade or so, appears to be reaching maturity or at least late adolescence. And that has major implications on future growth. The good news is that the demand is there.