Bank Broker Relationship with BM?

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Jul 4, 2007 4:16 pm

For those of you who work in a bank, what is your relationship with the branch manager? Since most are unlicensed and have no interest/knowledge of securities, do you usually stay out of each other's hair? How easily are you able to deflect general customer service related issues from walk ins without business potential? Being recruited by a bank but had always passed them over before...

Jul 4, 2007 5:28 pm

Yes, we generally stay out of each other's hair.  But it all comes down to the expectations that you set.  (Kinda like working with clients.  Gotta set the right expectations early on.)


We measure our manager's performance based on investment dollars.  However, I measure performance and effectiveness by referrals generated by the staff.  It's kinda hard to hold someone accountable to a goal that they have almost no direct control over it.  So I look for consistent and growing referral streams.


Working at a bank, you might be able to set account minimums.  Most larger banks set these minimums at $100k+.  I work at a credit union, so I generally have to work with everyone.  Now, there isn't a specified minimum, but I require $1,000 to open an account.  $10,000+ is a qualified referral.  If they don't have $1,000 they shouldn't be investing.  They should be SAVING.


Anything under $10k should be signed in the first appointment.  If it takes more than 1 appointment, they need to call me to set the next appointment.  I will NOT waste any time to pursue a client for under $10k.


Check out www.ultimatebankadvisor.com for additional resources to help POSITION you as an indepensible resource for your banking clients and the bankers who refer you.

Jul 5, 2007 12:28 am

Could you also perhaps give me a heads up in case the discussion gets to the negotiation point of what are common payouts for certain bank related activities? I'm aware that one usually gets about 25-40% of production in a bank environment but am not sure about life insurance or annuities, which I'm licensed for but have never sold before in any environment. (This is by design for the most part...) What's a reasonable expectation for payout on these products in a bank environment?

Jul 5, 2007 12:38 am

I'm not even sure how I get paid on Life Insurance.  I only know that it's not as good as a career agent would earn.


At banks, mutual funds and annuities are your bread & butter.  You should be well compensated for both of those sales.  Also expect to sell managed money platforms.


Basically, if you know how to calculate GDC, expect to get about 40% of what you generate depending on your volume for the month.  The higher the volume, the higher the payout.


What's MORE important than % payouts is the breaks in the grid where the % increases.  Do you see yourself producing at the higher levels?

Jul 5, 2007 2:09 am

Thanks for the responses. We'll see. I'll have to see what the levels are. One thing that I'll avoid is a 'complicated' payout scheme. I've spoke to a guy once who said there were a lot of "buckets" to hit in one comp plan he was under that served no purpose other than knocking you out of a higher payout by not hitting all areas. (Things like cross selling bank products. They know no one's interested in selling them since no payout so they'll tie it to the payout on other items...)

Jul 5, 2007 9:38 am
xbanker:

Thanks for the responses. We'll see. I'll have to see what the levels are. One thing that I'll avoid is a 'complicated' payout scheme. I've spoke to a guy once who said there were a lot of "buckets" to hit in one comp plan he was under that served no purpose other than knocking you out of a higher payout by not hitting all areas. (Things like cross selling bank products. They know no one's interested in selling them since no payout so they'll tie it to the payout on other items...)


A financial ADVISOR in a bank gets paid for selling investment products ONLY.  You are the investment "specialist" and that's ALL you do.


Licensed bankers have to sell deposit accounts, loans, refer other services to you and other partners, sell X units per day, etc.


Make sure you know what you're applying for.

Jul 5, 2007 10:26 am

The payout should be pretty standard.  Unless it's a large bank, I doubt you'll have bogies to hit in any other areas other than investments.


Thriving in a bank is all about your attitude.  You must put on a positive face, day in and day out.  You must command the respect of the branch managers and tellers (whether they actually report to you or not) and be seen high in the food chain (I always liken it to commercial lenders).


If you are already worrying (or even thinking) about getting tangled up with a branch manager, then you are not in the right frame of mind.  You should be excited about all the referrals they will generate, the great relationship you all will have, and the success it will bring.


Whether you think you can or you think you can't, either way you're right -  Henry Ford

Jul 5, 2007 3:05 pm

i take my branch managers out to lunch/dinner with wholesalers. i think it's good for them to hear the "message" from other people and let them know that they are appreciated. sometimes the branch manager sucks, then i focus on other bank employees. but having a good relationship with your branch manager is critical.

Jul 5, 2007 6:58 pm
Vin Diesel:

i take my branch managers out to lunch/dinner with wholesalers. i think it's good for them to hear the "message" from other people and let them know that they are appreciated. sometimes the branch manager sucks, then i focus on other bank employees. but having a good relationship with your branch manager is critical.




I agree 100%.  My situation is a little different: I am in a start-up program at a community bank. 

Jul 6, 2007 8:14 pm
BankFC:

The payout should be pretty standard.  Unless it's a large bank, I doubt you'll have bogies to hit in any other areas other than investments.


Thriving in a bank is all about your attitude.  You must put on a positive face, day in and day out.  You must command the respect of the branch managers and tellers (whether they actually report to you or not) and be seen high in the food chain (I always liken it to commercial lenders).


If you are already worrying (or even thinking) about getting tangled up with a branch manager, then you are not in the right frame of mind.  You should be excited about all the referrals they will generate, the great relationship you all will have, and the success it will bring.


Whether you think you can or you think you can't, either way you're right -  Henry Ford



I agree completely BankFC.

I spent my first 3 months doing nothing but building the relationships and trust with my branch managers (5 total branches).  I now know, without a doubt, that if corporate tried to reassign me the branch managers would put up a significant fight.  They trust me completely and the referrals follow.  I have decided to try and outside prospect, but frankly have no time with all the qualified referrals I am receiving. 

Checkout the website someone linked to above (ultimate bank advisor) and buy the book.  It is worth it for the chapters on how to develop relationships with the branches.

Also, like BankFC said, payout is pretty much the same at all banks.  Mine is a little different now because I work for a regional wirehouse within a bank.  30-48% is pretty standard though. 

Jul 6, 2007 8:54 pm

The bank manager is usually the one with the clipboard that greets

customers as they come in the door. Sometimes they refill the cookie tray or

make coffee.

Jul 7, 2007 10:07 am

I thought that was the FC's job? ISn't that what us bank reps do. I threw 75 on the boards last month not bad for a guy in a cube.

Jul 9, 2007 12:26 am

WOW.