10 Main Reasons I Left the Bank.

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bluestars80's picture
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Joined: 2007-07-12

No particular order:
1)Clients are NEVER your clients, they're the banks, and don't foget it.......
2)Banks don't trust their brokers, which is why they don't pay crap on stock trades
3)I didn't become an advisor to sell checking accounts and HELOCS during "sales contest week"
4)Banks are notorius at CUTTING payouts......when was the last time a bank RAISED payouts??
5)You have to push proprietary products, even if they are borderline unsuitable, so you can eat........
6)You are "expected" to convert the clients you bring to the bank to that bank's clients, even if they have been happy at their bank for 20 years or more........
7)You are expected to be at the bank when it is open, normally until 6pm.  Plus, Saturdays are required.  So you time is never your own.
8)If you start doing well and making "too much money", they take away branches from you or reassign you to other branches........

bluestars80's picture
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Joined: 2007-07-12

Forgot 9 and 10:
9)Most banks version of "fee-based" is an overpriced wrap account.
10)I wanted to do what was best for my clients, not what the BANK thought was best for my clients........

EDJ4now's picture
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Joined: 2006-02-08

bluestars80 wrote:
No particular order:
1)Clients are NEVER your clients, they're the banks, and don't foget it.......
I have some clients who would be very surprised to hear that.  Obviously some are loyal to the bank, but many of the "A" clients are ones I brought here, and many of the others know that the level of trust they need with a financial advisor is different than the level of trust they need with the girl who helps them with their checking account. 
The bank does draw a disproportionate number of "C" clients, and I will not fight over who owns them.  Just like they say at EDJ, "most of that IR's accounts stayed with us when he left" (200 households, average balance, $10,000).
2)Banks don't trust their brokers, which is why they don't pay crap on stock trades
I'm not a stock jock, so I don't care, although my payout is identical on stocks as other investments, and the commission that the client pays is exactly what it would be for an independent advisor using my BD.
3)I didn't become an advisor to sell checking accounts and HELOCS during "sales contest week"
Never done it, and never been told that I need to do better with it either.
4)Banks are notorius at CUTTING payouts......when was the last time a bank RAISED payouts??
Banks may be worse than others in this area, but I don't think anyone is raising payouts.  Even independents have higher compliance expenses than they used to, even if the payout doesn't change.
5)You have to push proprietary products, even if they are borderline unsuitable, so you can eat........
None here, sorry (although I am trying to transfer a proprietary annuity that is no longer being serviced by Mother Merrill, seems the broker took the upfront commission and is now AWOL as far as the client is concerned).
6)You are "expected" to convert the clients you bring to the bank to that bank's clients, even if they have been happy at their bank for 20 years or more........
I am guilty of this on CD's, because my bank pays higher than the competition across the street.  I also had 1 client open a checking account here that banked elsewhere before. 
7)You are expected to be at the bank when it is open, normally until 6pm.  Plus, Saturdays are required.  So you time is never your own.
Never worked a Saturday, rarely here when the bank opens, almost always here after it closes (but that's just me).  Wednesday is golf day, so no appts after 2:00 (I don't advertise that's where I'm going, but my assistant knows that I have a standing 3:00 "appointment" on Wednesdays.)
8)If you start doing well and making "too much money", they take away branches from you or reassign you to other branches........
Hasn't happened yet, and making more than the branch managers (they don't know it).  I would be happy if they would take away 2 of my branches and give them to someone else, I have too much servicing on smaller, older accounts as it is.

EDJ4now's picture
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Joined: 2006-02-08

bluestars80 wrote:
Forgot 9 and 10:
9)Most banks version of "fee-based" is an overpriced wrap account.
I have access to all of the fee based options that independents at my BD have.  I compared it to SAM I and SAM II at LPL, if I moved to LPL I would have to charge an additional .2-.25% to the client for my payout to not change.
10)I wanted to do what was best for my clients, not what the BANK thought was best for my clients........
I don't know or really care what the bank wants for my clients.  No one has ever been foolish enough to try to tell me what I could do differently with my clients' money for the sake of helping the bank.

My situation may be better than normal for a bank broker, I have to admit I'm pretty happy with it (regional, not national bank).  My impression that the bank experience varies tremendously, much more than the wire or independent or EDJ model varies. 
Is there a grain of truth to the above criticisms or the sterotype that bank brokers are failed wire brokers?  Sure.  Is there also a grain of truth to the sterotypical independent being lazy and having a small book, or the wirehouse branch manager who you have to ask for permission before you can use the restroom?  Sure.  But making sweeping generalizations only shows your ignorance.
In Bluestar's case, it sounds like he is speaking from personal experience, and it sounds like his old bank sucks, I know I couldn't work there.  I also could go on a rant about my ex-employer EDJ if anyone wants to hear it (and is too lazy to search the tail end of about every thread on every topic when it turns to bash EDJ). 
Lumping all bank programs together doesn't make sense.  Just be sure you read his post as a rant about an unreasonable employer, not an indictment of the bank channel.

vbrainy's picture
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Joined: 2006-07-26

Good posts.  Honest.  Can you say what type of bank you are at?  Where will you go now?

bluestars80's picture
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Joined: 2007-07-12

bluestars80 wrote:
In Bluestar's case, it sounds like he is speaking from personal experience, and it sounds like his old bank sucks, I know I couldn't work there.  I also could go on a rant about my ex-employer EDJ if anyone wants to hear it (and is too lazy to search the tail end of about every thread on every topic when it turns to bash EDJ). 
Lumping all bank programs together doesn't make sense.  Just be sure you read his post as a rant about an unreasonable employer, not an indictment of the bank channel.
I'll agree with your premise.  The best experiences tend to be the smaller private ot regional banks, not the big boys.  I worked for one of the biggest (not BOA), and it sucked.  Made me want to take a shower when I got home from work...........
 

Indyone's picture
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Joined: 2005-05-31

EDJ4now wrote:bluestars80 wrote: 9)Most banks version of "fee-based" is an overpriced wrap account.
I have access to all of the fee based options that independents at my BD have.  I compared it to SAM I and SAM II at LPL, if I moved to LPL I would have to charge an additional .2-.25% to the client for my payout to not change.
This one I'm having a hard time buying as I am paid out around 80% on SAM fee-based stuff...more or less depending on account size and whether or not I eat ticket charges.  Are you telling me that your payout is better than 80% of gross at a bank?!!  If so, you have a very generous bank program which I've yet to see.

Indyone's picture
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Joined: 2005-05-31

bluestars80 wrote:No particular order:
1)Clients are NEVER your clients, they're the banks, and don't foget it.......
2)Banks don't trust their brokers, which is why they don't pay crap on stock trades
3)I didn't become an advisor to sell checking accounts and HELOCS during "sales contest week"
4)Banks are notorius at CUTTING payouts......when was the last time a bank RAISED payouts??
5)You have to push proprietary products, even if they are borderline unsuitable, so you can eat........
6)You are "expected" to convert the clients you bring to the bank to that bank's clients, even if they have been happy at their bank for 20 years or more........
7)You are expected to be at the bank when it is open, normally until 6pm.  Plus, Saturdays are required.  So you time is never your own.
8)If you start doing well and making "too much money", they take away branches from you or reassign you to other branches........

Ditto on #3, #4 and especially #8 (instead of taking branches away, they just did #4 again).

bluestars80's picture
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Joined: 2007-07-12

Quote:This one I'm having a hard time buying as I am paid out around 80% on SAM fee-based stuff...more or less depending on account size and whether or not I eat ticket charges.  Are you telling me that your payout is better than 80% of gross at a bank?!!  If so, you have a very generous bank program which I've yet to see.
 Yeah, I didn't know mutual fund wrap accounts paid so well for bank reps.........
 

BankFC's picture
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Joined: 2005-05-27

I think you guys are mistaken...I think he was referring to GROSS production, not net to him.  OBVIOUSLY he's not getting an 80% payout.
He could have made it a little clearer though.

BankFC's picture
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Joined: 2005-05-27

Bluestars,
As far as your list is concerned, I would have to echo most of what EDJ4NOW responded. 
I NEVER work on saturdays.
Never been asked to sell a HELOC or other bank product.
Payout is same for all production (up to 40%) and hasn't changed in the two years I've been here.
We have no prop products.
My progrm manager sits 2 hours from here.  I come and go as I please.  I have too large a territory to cater to walkins.  Everything is appointment based.  I could literally get up right now, go home and work from home if I wanted to.  All I need is my cell phone and an internet connection.
I'm sure there were points I didn't address, but I think EDJ's post was pretty accurate.  I'd also say you are correct, regionals and smaller banks are much better than mega banks.  I work in a 3 billion dollar bank (considered large community bank).

EDJ4now's picture
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Joined: 2006-02-08

Indyone wrote:EDJ4now wrote:bluestars80 wrote: 9)Most banks version of "fee-based" is an overpriced wrap account.
I have access to all of the fee based options that independents at my BD have.  I compared it to SAM I and SAM II at LPL, if I moved to LPL I would have to charge an additional .2-.25% to the client for my payout to not change.
This one I'm having a hard time buying as I am paid out around 80% on SAM fee-based stuff...more or less depending on account size and whether or not I eat ticket charges.  Are you telling me that your payout is better than 80% of gross at a bank?!!  If so, you have a very generous bank program which I've yet to see.

I misspoke here.  Obviously the bank still gets their cut before me.  My (not clearly made) point is that the wrap program I use is very similar to SAM, and at the BD level the haircut is smaller.  Therefore the client is better off, because I can charge lower fees than I would charge if I was using a SAM account, and still have the same GDC.  You could argue that it's still an overpriced wrap account, but it would be even higher priced if I sold it to them at LPL. 

EDJ4now's picture
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Joined: 2006-02-08

To clarify: 
I'm only picking on SAM at LPL because it is a commonly used wrap account I am familiar with.  If I moved to LPL, I would probably use it, and I would have to decide if my fees would go up or if I would eat the difference.

Indyone's picture
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Joined: 2005-05-31

I'm with you now, but I would tell you that there would be no reason to price fee-based higher if you were indy.  I didn't have to pay an admin fee at my bank either, so my gross was higher, but my net was significantly lower.   I didn't lower or raise anyone's fees when I left the bank for independent.  I figured that LPL's 20% was still substantially less than the bank's 60-65%...
Since leaving to go indy, I've come to the conclusion that gross doesn't mean squat.  It's all about the net.

troll's picture
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Joined: 2004-11-29
bluestars80's picture
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Joined: 2007-07-12

joedabrkr wrote: GDC doesn't matter.  Net does.
Best post I've read so far.........
 

Vin Diesel's picture
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Joined: 2007-04-18

what bank were you at? sounds like a crappy program.
I work 8:30 -5:30, and can leave early anytime. I work Satuardays sometimes, but im not required to. I'm not trading individual stocks anymore...but you're right, bank platforms are not geared for that type of business. we have wrap & sma accounts available.
bank sprints/sales contest can be corky, but when you're getting high quality referrals it makes it worth it.
better luck with your next gig.

bluestars80's picture
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Joined: 2007-07-12

Vin Diesel wrote:
what bank were you at? sounds like a crappy program.
I work 8:30 -5:30, and can leave early anytime. I work Satuardays sometimes, but im not required to. I'm not trading individual stocks anymore...but you're right, bank platforms are not geared for that type of business. we have wrap & sma accounts available.
bank sprints/sales contest can be corky, but when you're getting high quality referrals it makes it worth it.
better luck with your next gig.
 
Every time I broke the $300K GDC barrier, I got reassigned to new underproducing branches.........
The final straw was when they decided to give "breakpoints" on VA's, with the explanation that it was "better for the client", and the guy who questioned it got let go........... 

troll's picture
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Joined: 2004-11-29

BankFC wrote:
Bluestars,
As far as your list is concerned, I would have to echo most of what EDJ4NOW responded. 
I NEVER work on saturdays.
Never been asked to sell a HELOC or other bank product.
Payout is same for all production (up to 40%) and hasn't changed in the two years I've been here.
We have no prop products.
My progrm manager sits 2 hours from here.  I come and go as I please.  I have too large a territory to cater to walkins.  Everything is appointment based.  I could literally get up right now, go home and work from home if I wanted to.  All I need is my cell phone and an internet connection.
I'm sure there were points I didn't address, but I think EDJ's post was pretty accurate.  I'd also say you are correct, regionals and smaller banks are much better than mega banks.  I work in a 3 billion dollar bank (considered large community bank).

I DO work Saturdays. I own my business and LOVE what I do.

dalbroker's picture
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Joined: 2007-03-25

9. Witnessing banks enjoy at keeping large sums in non-interestbearing account should make every advisors stomach churn. 10. The asset allocation models that some banks employ are the financial equivalent of the model T. 11. Hmmm.....How about a product menu that is based on which vendorpays the most.....12. working with bankers who think a balanced fund is WAY TOO RISKY. LOLI will quit while I am ahead.

bluestars80's picture
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Joined: 2007-07-12

dalbroker wrote:9. Witnessing banks enjoy at keeping large sums in non-interestbearing account should make every advisors stomach churn. 10. The asset allocation models that some banks employ are the financial equivalent of the model T. 11. Hmmm.....How about a product menu that is based on which vendorpays the most.....12. working with bankers who think a balanced fund is WAY TOO RISKY. LOLI will quit while I am ahead.
 

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