Wealth Management Programs are Not Created Equal: 4 Keys to Growth
Consumers want holistic banking and wealth management services. Banks and credit unions seeking to offer integrated services must best position themselves to meet customer demands — and drive new revenue.
By LeAnn Rummel, President and CEO, Cetera Investment Services
Consumer demand for holistic banking and wealth management services has increased by 60% since 2018 — especially with investors between 25 and 44. As a result, banks and credit unions are offering integrated banking and wealth management services to meet demand and drive new revenue streams during today’s economic climate.
But as we’ve come to find out, not all wealth management programs are created equal. It takes know-how and industry expertise to build programs that work and not every bank or credit union is equipped to meet the demands for additional financial services. This is why it’s crucial to explore all of the options when developing a program to ensure financial institutions find the right partners and program to meet its specific needs for both today and tomorrow.
As the financial playbook shifts from a siloed approach to a unified experience, banks and credit unions must create solutions that deliver a full integrated experience under one roof. Banks and credit unions are well-versed in traditional solutions but many fall short in wealth management services.
Read on for four tips on how financial institutions can grow wealth management programs and stand out in the highly competitive market.
1) Don’t Skimp on the Tech Stack
Technology is the gateway to a holistic banking experience. With the right technology, clients can have real-time access to all of their accounts. However, with the wrong technology or without an integrated approach, clients will get frustrated and, most likely, move their accounts to a competitor with a better holistic experience. The stakes are high when it comes to the tech stack — so don’t mess it up.
Additionally, with wealth management and data integration technology, it is possible to gain a deeper understanding of clients and their needs. The data can also be used to offer clients adjacent solutions and deepen their penetration rate, and at the same time, add revenue streams and d
2) Work with a Dedicated Support Team
Every financial institution has different goals, needs and circumstances. So why do financial advisory firms treat them all the same? They shouldn’t. The best wealth management programs in the industry are customized to the client and have a dedicated growth officer or support team working with them to develop plans and roadmaps for the future.
Learn more:
- The Great Wealth Transfer: How Banks Win the Next Generation of Business Owners
- Where Will Growth Come from in 2025? 3 Bank CEOs Focus on Product Innovation, Non-interest Income
- Young Women Are Getting Richer. Here’s How Banks Should Market to Them
At Cetera, we pride ourselves on working directly with our clients and their senior leaders to provide solutions that empower them to reach their goals. We personalize our solutions — with no cookie-cutter offerings — and have a growth officer on-call to explain the ins and outs of their wealth management programs.
3) Break Down Silos, Leverage Leadership
Banking has a long history of working in silos. But the tides are changing. Today’s top financial advisor firms believe wealth management programs should be collaborative and representative. One thing we do at Cetera that I encourage other organizations to do is assemble councils made up of leadership teams and constituents from different groups, such as program managers, financial advisors, office staff and end clients. This enables different voices to be heard — and the information gathered is used to make the program the very best it can be.
What’s more, we have found that open lines of communication and access to senior leaders also help enhance the culture at a bank or credit union. In the end, this leads to better experiences as well as client satisfaction.
4) Engage with Industry Experts
Experience is everything in finance — and wealth management is no different. Historical knowledge and understanding of financial markets are a must. However, not every bank or credit union has the expertise required to expand into the wealth management space. My advice is to seek out an advisory partner who understands a financial institution’s goals and has high success and retention rates.
Established financial advisor firms are also at the forefront of creating unified and fluid banking and financial experiences. They have access to data integrations that allow clients to see their full financial picture on one dashboard and use planning tools from anywhere at any time. This data is extremely helpful when creating a tailored wealth management program.
The evolution of the banking industry to a one-stop-shop experience will not happen overnight. As the pendulum shifts, wealth management services are taking center stage — but to build the best program, remember, financial institutions don’t have to go at it alone.
