Bank Reps - Licensed Banker Programs

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

any thoughts/experience with licensed bankers in branches?

CashFlow's picture
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Joined: 2008-08-05

They are product pushers only.  Usually 6 licensed to sell m/f's and fixed annuities and occassional VA.  Not impressed at all with the 30 or so I have known.  Usually only focused on front end commissions and are not around long enough to dig deep into a client relationship. 

PremierAdvisor's picture
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Joined: 2009-07-22

BioFreeze wrote:I think it's funny how they hover around the teller cages when they are tipped off that I have a large cash balance. 
 
$5,000 isn't a large cash balance.

DireWolf's picture
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Joined: 2009-04-16

Like in any program, there are good and bad FA's. And yes, they are usually not digging deep into client relationships. But the joke is on you! I started my career at a bank program selling fixed annuities and "B" shares. My first year in production I did 550K, and did not know a thing. I always wondered why anyone would want to work in a 'wirehouse' when I had 10-15 people per branch, whose only job was to refer me business.  Talk about leverage! Granted, I had to work like a dog, ran 7-10 appts a day, and 50-100 dials a day.
 
That was for the dogs.  I transitioned  that type of business into a wealth management practice (quite honestly, wanted to work fee based and work less). Today I manage 130 mill in brokerage assets, do about 750K in production, of which is 400K in fee-based trails. The thought of even having to step in a branch now makes me cringe. My days of bringing in coffee and doghnuts are done, thank god.
 
Bottom line, any program is what you make it to be.  I really feel that bank programs are a great way to build a book and a great way to get in front of clients via bank relationships, that you probably never would have.  Sure there are pleanty of lame bank brokers, but there are also alot of great ones...laughing all the way to the bank!

liquidasset's picture
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Joined: 2005-08-10

Bank Programs can be a challange and a conflict of interest on both parts. The Bank side wants you to sell bank products  ( checking, savings, cd's, home equity, ect ) the investment side wants to see small MF tickets and referrals to the FA. Bankers have a ton of stress if you work for a large national bank, they have quotas and cross sells that are not easy. Most lic. bankers are not educated enough on the investment side. When a lic. banker does get a small account to open...the bank managers would rather have that go to a cd or new savings account. They don't like the time it takes either. You are not getting paid much on the MF business you do, so most lic. bankers could care less if they do any business.  A good lic. banker will get good at spotting quality referrals and getting them to an FA....when I say good, i mean that the people know they are going to meet with an FA and talk about investments. Alot of bankers just want the ref. credit over to an FA so they can get that quota met at the end of the quarter.  Very frustrating, but that is what happens when they don't educate and have very stressfull goals to meet.
 
If you want quality referrals you have to educate the banker on what that is and what to look for. The FA has to be willing to see the prospect as well. Many FA's want to schedule a appointment for later in the week. IF the FA has time right then, they should be seeing that potential client. Makes the experience much better and the banker will keep referring. A good FA should follow up to the banker on how it went. A good lic. banker should be rewarded for good referrals. One thing that people do is have a wholesaler come in and educate all the lic. bankers....it get's them very motivated and ready to talk about investing.
 
Don't take the bankers for granted as they can make your job a bit easier sometimes, or they can just give that lead to another FA.....or just open that bank cd. A good lic. banker should want a career in investments, as i believe it can lead to being an FA or Junior.
 
Just my two cents...I do not work for a bank anymore, just what I saw. 

Ron 14's picture
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Joined: 2008-07-10

DireWolf wrote:Like in any program, there are good and bad FA's. And yes, they are usually not digging deep into client relationships. But the joke is on you! I started my career at a bank program selling fixed annuities and "B" shares. My first year in production I did 550K, and did not know a thing. I always wondered why anyone would want to work in a 'wirehouse' when I had 10-15 people per branch, whose only job was to refer me business.  Talk about leverage! Granted, I had to work like a dog, ran 7-10 appts a day, and 50-100 dials a day.
 
That was for the dogs.  I transitioned  that type of business into a wealth management practice (quite honestly, wanted to work fee based and work less). Today I manage 130 mill in brokerage assets, do about 750K in production, of which is 400K in fee-based trails. The thought of even having to step in a branch now makes me cringe. My days of bringing in coffee and doghnuts are done, thank god.
 
Bottom line, any program is what you make it to be.  I really feel that bank programs are a great way to build a book and a great way to get in front of clients via bank relationships, that you probably never would have.  Sure there are pleanty of lame bank brokers, but there are also alot of great ones...laughing all the way to the bank!
 
Did you go independent within the bank or on your own ? Either way that is just awesome for you and I hope to eventually do the same.

today1's picture
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Joined: 2008-05-07

i agree with dire wolf. when you are building a book they can be great to help you bring in business.  but after a couple of years when you have built a good base book, and you want to move up market, they become a less effective use of your time.  they have high turnover and you are constantly having to retrain and reducate them.  its gets old after a while.  once your book is big enough and you can get a good inflow of referrals from your existing clients its time to move on from the branch system.

Big Guns Magee's picture
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Joined: 2008-09-25

DireWolf -- Thanks for encouraging news as I am currently working in a bank environment myself. How long did you work for the bank and how much in assets did you transfer?

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

good feedback...thanks guys!

Omar's picture
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Joined: 2009-03-19

Vin,
 
The Bank Program was the best thing I ever did to start in this business.  I trained bankers to refer to me and although it took hard work, it beats cold calling.  There are a lot of downsides which have been posted already, but if you work the program, you can build a nice book of business.  I do quite a bit fee based business as well as transactonal and many bank platforms have a wide range of products. 
 
However,  it's now time for me to leave and go Indy as I no longer need the bank.  I would treat a bank program as a 3-5 year timeframe to build a book and get out when the time is right for you.

ChrisVarick's picture
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Joined: 2008-09-04

If you start out at a bank, build a book for 3-5 yrs, can you MOVE all the clients with you to Morgan Stanley or LPL? Will the bank come after you legally?

Omar's picture
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Joined: 2009-03-19

Yes, you have a noncompete, so the bank can come after you. 
 
But, like most advisors, you try and leave quietly and only "announce" where you have gone.

Ron 14's picture
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Joined: 2008-07-10

Omar, how has the move gone for you thus far ? Keep us bank guys posted !!

Ron 15's picture
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Joined: 2009-08-26

I know of one  Bank rep that refers boatloads of quality clients over to his FA..

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