Why In-House Investment Programs Work for Local Banks & Credit Unions

As the financial services industry gets more competitive and significant wealth is transferring from retirees to younger generations, local banks and credit unions are looking for ways to deliver more client value, expand their market presence, and drive revenue growth.

One option that banks and credit unions should explore is developing an in-house investment program or expanding their existing in-house investment program to offer additional investment services. There are several compelling reasons why a comprehensive in-house investment program makes sense, including:

1) Strengthens Existing Client Relationships

By offering investment services along with banking services, retail banking institutions can increase the relationship value they deliver to clients, improve their client service and experience by knowing clients even better, and prevent clients from seeking out other investment service providers.

2) Keeps Your Institution Competitive

Retail banks compete for business in their community against financial organizations of all shapes and sizes. By having an in-house investment program as part of their service offering, banks can stay competitive with institutions offering similar services.

3) Brings in New Clients

Experienced investment professionals typically have an established book of business that includes many established client relationships. Some of these clients will be new to the banking institution and can be cultivated for future banking business.

4) Builds Non-Interest Income

With traditional banking services under constant pricing pressure, the fee income generated from investment services is a potential area for growth and can complement a bank’s traditional interest-based revenue streams.

The American Portfolios Denver team has decades of experience helping local banks and credit unions develop and grow their in-house investment programs. Our suite of bank advisor services include growth planning, practice management, product selection, operational platform selection, business coaching, compliance, succession planning, and administrative support.

Please contact Ron Taylor (303-850-4867, rtaylor@americanportfoliosdenver.com) if you’d like to learn more about how we can help your retail banking institution.