We recently hosted a webinar titled: Leveraging Financial Institution Data in LPL Bank and Credit Union Programs. The panel featured industry leaders who discussed ways to leverage financial institution data to successfully drive revenue and growth. Discussion topics included accelerating growth in your investment program, how firms can use customer activities and events at the financial institution to identify sales opportunities, and how to collaborate with the financial institution to increase share of wallet.

Terrapin Technologies President, Kristefor Lysne, moderated the discussion and was joined by:

  • Peter Bielan, Principal, Kehrer Bielan Research & Consulting
  • Teo Trandafir, Director, Investment Services at UW Credit Union
  • JC Murray, CFTA, Regional Manager at First Interstate Bank
  • Brett Harner, Director, Financial Services at Golden 1 Credit Union

In this recap, we look at current financial institution trends and how the panelists are using data to adapt and thrive in the changing landscape.

The Value Investment Programs Bring to the Financial Institution

According to research from Kehrer Bielan Research and Consulting, on average, clients that have purchased an investment at their financial institution have a greater checking and savings account balance. Research shows that 47.6% of households that have an investment at their primary depository institution say they would not switch where they bank as opposed to 37.2% that did not purchase an investment. Peter Bielan shared that it is in the financial institution’s best interest to support investment programs to maintain retention. While firms captured new investments through referrals in the past, we’re now seeing that they must establish new pipelines with the changing landscape.

Making Financial Institution Data Actionable

Each firms’ unique relationship with the financial institution gives us a variety of examples of successful collaboration with the parent organization:

  • Move-Money Report. A report covering all branches in the territory to show large amounts of funds coming in and going out. It has led to opportunities and retention.
  • Changes in Member Life Stages. Changes in income sources may be an indicator of a job change and a potential IRA rollover. This indicator has led to great opportunities for reaching out at the right time.
  • Existing Loan Write-Ups. Reviewing financial profiles in commercial loan and credit write-ups can give insights about business relationships and provide opportunities.

There was consensus among the panelists on the value of having a consistent view of the organization’s data. With their data aggregated, their program can turn it into actionable insights. Although not all firms are there yet, they have made small steps in that direction.

Thriving Despite Low Branch Traffic and Referrals

As seen over the course of 2020, referrals from brick and mortar banks and credit unions have been dismal. However, the pandemic of 2020 is not the only factor contributing to the decrease in referrals. According to Peter Bielan referrals have been declining modestly over the past five years. The steady rise of financial institutions with stagnant referrals has led to a decrease in the percentage of households referred. Pulling information from the financial institution, LPL, or any internal or external sources is becoming increasingly essential.

While there is a large decrease in retail referrals, multiple panelists have found winning strategies. One firm in particular has experienced an increase in retail conversion by focusing on quality referrals and better optimization. Strategies for centralizing communications and awareness campaigns have also helped drive better awareness of their processes and reach.

A different firm enrolled their advisors into educational programs so that they may position themselves as a center of influence, thereby expanding the pipeline for growth.

Another firm that was behind their referral goal for the year managed to exceed its revenue goal by engaging with existing clients and working on each referral with diligence. By tracking their referrals using a CRM, they identify opportunities and track each stage to understand why the sale did or didn’t happen.

Creating a Positive Client Experience

In the last discussion of the webinar, the panelists unanimously agreed that creating a consistent client experience across offices is a top priority for the 2021 calendar year. Some programs are considering award programs in which their advisors receive recognition for providing a consistent customer experience. Others emphasize the need to have a consistent customer experience across the institution while still allowing room for the advisors to exercise themselves and their personalities. The deep-rooted goal of creating a positive customer experience is to deepen their loyalty to their primary financial institution and ultimately lead to greater wallet share.

Wrap Up

If you weren’t able to attend but would like to view the recording, you can sign up to watch the recording by clicking below.


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