Sometimes it’s best to start from scratch.
That’s exactly what
While the bank brokerage program went through the normal “growing pains” of setting up the teams and the right processes, it was well worth the effort, said
“We are No. 1 in terms of growth among our peer group,” he said.
Indeed, the program shows great promise, according to recruiters. Even though
The broker-dealer is making a big push in the Northeast in a bid to capture mass-affluent customers with assets between
While ambitious, Batlle believes the goals are achievable given the quality of the program he and the bank have put together. In addition to training, the program offers one of the most competitive incentive compensation plans in the industry, Batlle said. That, combined with the global resources and brand name recognition of Santander as well as referrals from the retail branch network, will help attract the advisors he needs to grow the program, he said.
“It’s good to hear that Santander is going to make some changes,” commented
To attract advisors and boost the program’s profile, Santander assessed the comp plans offered at rival banks and bumped up the grid in ranges where it sought to be more competitive. For example, a
“I would say Fernando’s program and Santander’s is right there, maybe a percentage or two ahead of most of the others,” said Blevins. Blevins added that Santander’s program accelerates comp payouts for managed money and fee-based business, a reflection of the program’s “holistic, service-oriented model.”
In fact, Santander is treating its brokerage program as would banks with larger, more developed programs, Blevins said. “Their behavior is not typical of a bank with only 700 branches,” he said, explaining that banks like Santander tend to be volume and product-driven, selling annuities, mutual funds and the like. Banks of Santander’s size, he went on, are not usually looking for managed money, fee-based business or long-term recurring revenue, as Santander is trying to do. “That’s usually reserved more for the Wells Fargos, the Citibanks and the SunTrusts that have more evolved programs,” he said.
Santander is mimicking the bigger players in other ways, most notably by insourcing the broker-dealer function, despite a general trend in the industry to outsource the business. Santander did so to control and better manage every aspect of the client relationship, Batlle said. It also allowed the bank to gain complete control of the business without diluting the power of their global brand.
“It was always our plan to eventually take the broker-dealer function in-house. This is consistent with Santander’s global strategy and how we conduct business in the geographic markets in which we are present around the world,” Battle said. In addition, the bank has the size and economies of scale to take on the attendant technology, compliance and other costs and risks that go with running a broker-dealer, he said.
Already, the program is on track to have ten
“I think Santander over the next five to 10 years is going to give the other big bank programs a run for their money in the industry. I wouldn’t surprise me to see them leading the pack,” Blevins said.
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