— Banks and Credit Unions Have Barely Tapped Potential to Grow Household Penetration and Wallet Share Among Customers Inclined to
/FROM PR NEWSWIRE
STK NASDAQ-NMS:LPLA
IN FIN INS
TO BUSINESS, AND RETAILING EDITORS:
LPL Financial Co-Sponsored Study Shows Major Untapped Opportunity for
Retail Financial Institutions
nation's largest independent broker-dealer and a wholly owned
subsidiary of
announced several key findings from a new study examining the role of
investment services and insurance customers at retail financial
institutions. The study, "The Value of an Investment and Insurance
Customer to a Bank," was conducted by
Among the key findings of the study include:
— Households that buy investments and insurance where they bank are
among a retail financial institution's most profitable and desirable
customers;
— Such customers are more likely to stay with that institution than
customers with multiple banking relationships; and
— By under-investing in their investment and insurance services
businesses, retail financial institutions are missing the opportunity
to increase the stickiness of these highly desirable customers.
"I have been very excited about the opportunity for
sponsor this study, which was specifically designed to help
institutions see the opportunity that exists from a successful and
growing investment and insurance program," said
managing director and president of
Services division.
"Intuitively, many executives at financial institutions have believed
in the strategic importance of the investment and insurance services
customer. But until now there has not been a source of industry data
to test this belief, and this appears to have led to under-investment
by banks and credit unions in their investment and insurance services
capabilities," added
and co-author of the study.
Additional findings of "The Value of an Investment and Insurance
Customer to a Bank" include:
— Consumers who have purchased an investment or insurance product
from their primary bank or credit union have checking account balances
that are 16 percent higher than those households without a brokerage
or insurance relationship;
— Brokerage customers have savings account balances that are on
average 85 percent higher than non-brokerage customers; and
— Brokerage and insurance customers have more than twice as many
credit products and 11 percent more remote banking products than
customers who have not purchased an investment or insurance product
from their primary bank or credit union.
"At
proposition is designed to help advisors, program managers and the
financial institution achieve more household penetration and grow
wallet share from each and every client relationship, and is unmatched
by any other provider focused on the financial institution space," Mr.
Kalbaugh concluded.
insurance services to approximately 670 banks and credit unions
nationwide, including unbiased product expertise, proven program
management, and a choice of clearing solutions – all tailored to meet
the unique needs of each client. Banks and credit unions that wish to
learn more about
their organization are encouraged to reach out to
Assistant Vice President, at (704) 733-3580 or darlene.cain@lpl.com,
to identify the business consulting associate who supports their
territory.
The new study draws on data from the MacroMonitor, the largest
comprehensive retail financial-services and marketing database that
has measured, analyzed, and interpreted consumer attitudes, behaviors,
and motivations continuously since 1978. The 2010/2011 MacroMonitor
is a national sample survey of 4,374 households, with an oversample of
1,500 affluent households, reweighted to be representative of the U.S.
population. This comprehensive survey is conducted every other year
by the
Insights, formerly part of
About LPL Financial LPL Financial, a wholly owned subsidiary of LPL
independent broker-dealer (based on total revenues, Financial Planning
magazine, June 1996-2011), a top RIA custodian, and a leading
independent consultant to retirement plans.
proprietary technology, comprehensive clearing and compliance
services, practice management programs and training, and independent
research to more than 12,800 financial advisors and approximately 670
financial institutions. In addition,
financial advisors licensed with insurance companies by providing
customized clearing, advisory platforms and technology solutions. LPL
Financial and its affiliates have more than 2,700 employees with
headquarters in
information, please visit http://www.lpl.com.
Securities offered through
Based on total revenues,
LPLA-C
LPL Financial Institution Services Contact
President, Business Development (704) 733-3917 craig.kamis@lpl.com
LPL Financial Media Contact
521-4897 michael-herley@kekst.com
SOURCE
-0-
/Web Site: http://www.lpl.com
(NASDAQ-NMS:LPLA) /
CO:
ST:
IN: FIN INS
SU: SVY
PRN
— NY63346 —
0000
| Copyright: | (c) 2012 The Associated Press |
| Source: | Associated Press |
| Wordcount: | 849 |
More Articles