Bank Brokers Step Up

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Jan 24, 2007 11:59 am

Is there a more maligned group on this forum than the Bank Brokers?  Aha you argue, the EDJ guys take it much worse. 


BUT THE EDJ GUYS DESERVE IT.


I have been a long and strong supporter of the Bank Brokers becase I do not believe success in this business is defined by how you prospect.  Success is defined by doing the best for yourself and your client.  Mutually beneficial relationships.  AND I do think you can do that at the Bank


So, stand up for yourself--guys and gals.  Tell us why the bank is great.  How big your book is, how you get paid, and the variety of products you can provide.


Oh, you can tell us that bad stuff too, like if you have quotas or ONLY sell annuities.


Just talk to us.

Jan 24, 2007 12:42 pm

The bank is great.


My book is mostly fee based paying me a 140 bps trail.


I am not forced to sell anything.  


I have practically nothing in annuity products as I do my best to talk people out of them.


I do mostly asset allocation and plan to introduce LTC to my practice very soon.


scrim

Jan 24, 2007 12:42 pm

I appreciate this gracious, although unnecessary, vote of support for the bank channel.  I feel no need to define my success based on anything other than the achievement of mine and my clients goals.  This was no different than when I worked at ML.


Those who have some sort of animosity towards "bank brokers," which couldn't be more general.  At least EDJ is somewhat homogenous in it's training and culture.  Bank brokers come from such a variety of backgrounds, it is impossible to catogorize the channel at all.  Much like wirehouses come to think of it.


Here are the reasons why I am glad I moved from ML to my bank (and left behind my clients)


1)  250 million in deposit base, and strong comm dept to refer business versus continued cold calling and networking events and 60 - 70 hour work weeks.


2)  Constant feeling of "sharks in the water" anytime you spoke about prospective customers at ML


3)  Took a long look at product, and other than niche structured deals, the bank b/d had everything ML had.  Consequently, the b/d has been since bought by LPL, so I look forward to having EVERYTHING again


4)  It's never a bad thing to be tight with a bank as I have learned


5)  One day I might go back, or maybe I'll go indy, but in the mean time I'm bringing in about 15 million a year with no connections other than my employer.  That could not be done at any wirehouse.

Jan 24, 2007 12:48 pm

BankFC,


Nice deposit base.


I'm working with a base about 1/3 your size.


I'm not sure if this is necessarily a bad thing though.


Time will tell.


Scrim

Jan 24, 2007 1:03 pm
BankFC:

I appreciate this gracious, although unnecessary, vote of support for the bank channel.  I feel no need to define my success based on anything other than the achievement of mine and my clients goals.  This was no different than when I worked at ML.


Those who have some sort of animosity towards "bank brokers," which couldn't be more general.  At least EDJ is somewhat homogenous in it's training and culture.  Bank brokers come from such a variety of backgrounds, it is impossible to catogorize the channel at all.  Much like wirehouses come to think of it.


Here are the reasons why I am glad I moved from ML to my bank (and left behind my clients)


1)  250 million in deposit base, and strong comm dept to refer business versus continued cold calling and networking events and 60 - 70 hour work weeks.


2)  Constant feeling of "sharks in the water" anytime you spoke about prospective customers at ML


3)  Took a long look at product, and other than niche structured deals, the bank b/d had everything ML had.  Consequently, the b/d has been since bought by LPL, so I look forward to having EVERYTHING again


4)  It's never a bad thing to be tight with a bank as I have learned


5)  One day I might go back, or maybe I'll go indy, but in the mean time I'm bringing in about 15 million a year with no connections other than my employer.  That could not be done at any wirehouse.



Why do I have a hard time believing that you're snatching up 6% of the bank's assets every year? Once again, you are caught in a lie.

Jan 24, 2007 1:35 pm

Keep in mind, just because our offices are in bank branches don't assume all the assets we bring in are from bank products at our own bank.


A big part of my business in from 401k rollovers and assets from other banks.


If you assumed all my business was coming from my bank my percentage would be 15% per year and my whole book would be about 33% of the entire branch.


That is just not the case.


scrim

Jan 24, 2007 2:55 pm

MIC,


don't be so cynical. My old bank had 300 mil in deposits yet on the investment side we managed 120 mil. its about leveraging the relationship, not cannibalizing (?) deposits.

Jan 24, 2007 4:50 pm
My Inner Child:
BankFC:

I appreciate this gracious, although unnecessary, vote of support for the bank channel.  I feel no need to define my success based on anything other than the achievement of mine and my clients goals.  This was no different than when I worked at ML.


Those who have some sort of animosity towards "bank brokers," which couldn't be more general.  At least EDJ is somewhat homogenous in it's training and culture.  Bank brokers come from such a variety of backgrounds, it is impossible to catogorize the channel at all.  Much like wirehouses come to think of it.


Here are the reasons why I am glad I moved from ML to my bank (and left behind my clients)


1)  250 million in deposit base, and strong comm dept to refer business versus continued cold calling and networking events and 60 - 70 hour work weeks.


2)  Constant feeling of "sharks in the water" anytime you spoke about prospective customers at ML


3)  Took a long look at product, and other than niche structured deals, the bank b/d had everything ML had.  Consequently, the b/d has been since bought by LPL, so I look forward to having EVERYTHING again


4)  It's never a bad thing to be tight with a bank as I have learned


5)  One day I might go back, or maybe I'll go indy, but in the mean time I'm bringing in about 15 million a year with no connections other than my employer.  That could not be done at any wirehouse.



Why do I have a hard time believing that you're snatching up 6% of the bank's assets every year? Once again, you are caught in a lie.



It's not the amount that I take exception with, it's the assumption that that amount is out of reach within the wirehouse environment. To apply one's own experience and assume it applies to an entire industry is ill advised.


The lack of respect bank brokers receive, if indeed that is still an issue, resides in the fact that the first generation of bank brokers were mostly, if not completely, taken from the ranks of failed wirehouse brokers. Today, the bank channel has evolved to develop its own grown from pups advisors. These advisors command and deserve respect.


New image problems revolve around the fact that many banks pursue a heavy, yield to pocket of the bank, product push via a limited ill fitting off the rack product base. Then again wirehouse brokers have their own set of image issues to deal with.

Jan 24, 2007 4:52 pm

"Leveraging the relationship". A great buzz work at BAC

Jan 24, 2007 5:06 pm

I work in a Credit Union.  Myself and the other rep share one sales assistant.  We both have a 40% payout on all products.


+ Management leaves us alone because they don't understand what we do.


- They're cheap and I had to beg them to spend some money on software.


Jan 24, 2007 9:54 pm
My Inner Child:
BankFC:

I appreciate this gracious, although unnecessary, vote of support for the bank channel.  I feel no need to define my success based on anything other than the achievement of mine and my clients goals.  This was no different than when I worked at ML.


Those who have some sort of animosity towards "bank brokers," which couldn't be more general.  At least EDJ is somewhat homogenous in it's training and culture.  Bank brokers come from such a variety of backgrounds, it is impossible to catogorize the channel at all.  Much like wirehouses come to think of it.


Here are the reasons why I am glad I moved from ML to my bank (and left behind my clients)


1)  250 million in deposit base, and strong comm dept to refer business versus continued cold calling and networking events and 60 - 70 hour work weeks.


2)  Constant feeling of "sharks in the water" anytime you spoke about prospective customers at ML


3)  Took a long look at product, and other than niche structured deals, the bank b/d had everything ML had.  Consequently, the b/d has been since bought by LPL, so I look forward to having EVERYTHING again


4)  It's never a bad thing to be tight with a bank as I have learned


5)  One day I might go back, or maybe I'll go indy, but in the mean time I'm bringing in about 15 million a year with no connections other than my employer.  That could not be done at any wirehouse.



Why do I have a hard time believing that you're snatching up 6% of the bank's assets every year? Once again, you are caught in a lie.



Again, you're lack of basic understanding of how brokerage works shows why your just an EIA whore.


About 60% of my business is QUALIFIED money, mostly coming from ROLLOVERS of 401K's of customers of the bank.  This doesn't affect the deposit base at all.  I rarely turn a CD buyer into a mutual fund buyer.  What money I do take out of the bank is usually idle cash in money markets, from sale of property, inheritence, etc.


Maybe you should learn a little about the business before you start calling people liars.  You'd at least HIDE your stupidity then.

Jan 24, 2007 10:44 pm

I know a couple of guys that are brokers in a bank. They are not a team

but both are the goto guys to a group of 8 private bankers. Their product

mix is about 70% annuities, 20% fixed income and 10% funds. Each breaks

$1 Million in production and net about $450,000 a year.



They acknowledge that less than 10% of their assets would follow if they

were to leave and they are fine with that. They also live with the constant

threat of reorganizations and cuts in their payout and they are okay with

that as well. In fact, they have fewer revisions to the payout than

wirehouse brokers.



One advantage is that the brokerage biz represents a small portion of the

revenue mix for the bank, so its not a priority business line, hence,

management kinda leaves well enough alone. Compliance is very, very

tight to avoid settlements, lawsuits, bad press and arbitrations.

Jan 24, 2007 11:28 pm
BankFC:
My Inner Child:
BankFC:

I appreciate this gracious, although unnecessary, vote of support for the bank channel.  I feel no need to define my success based on anything other than the achievement of mine and my clients goals.  This was no different than when I worked at ML.


Those who have some sort of animosity towards "bank brokers," which couldn't be more general.  At least EDJ is somewhat homogenous in it's training and culture.  Bank brokers come from such a variety of backgrounds, it is impossible to catogorize the channel at all.  Much like wirehouses come to think of it.


Here are the reasons why I am glad I moved from ML to my bank (and left behind my clients)


1)  250 million in deposit base, and strong comm dept to refer business versus continued cold calling and networking events and 60 - 70 hour work weeks.


2)  Constant feeling of "sharks in the water" anytime you spoke about prospective customers at ML


3)  Took a long look at product, and other than niche structured deals, the bank b/d had everything ML had.  Consequently, the b/d has been since bought by LPL, so I look forward to having EVERYTHING again


4)  It's never a bad thing to be tight with a bank as I have learned


5)  One day I might go back, or maybe I'll go indy, but in the mean time I'm bringing in about 15 million a year with no connections other than my employer.  That could not be done at any wirehouse.



Why do I have a hard time believing that you're snatching up 6% of the bank's assets every year? Once again, you are caught in a lie.



Again, you're lack of basic understanding of how brokerage works shows why your just an EIA whore.


About 60% of my business is QUALIFIED money, mostly coming from ROLLOVERS of 401K's of customers of the bank.  This doesn't affect the deposit base at all.  I rarely turn a CD buyer into a mutual fund buyer.  What money I do take out of the bank is usually idle cash in money markets, from sale of property, inheritence, etc.


Maybe you should learn a little about the business before you start calling people liars.  You'd at least HIDE your stupidity then.



Then why have you been bragging about your bank's tiny asset base, liar?

Jan 25, 2007 12:23 pm

Good stuff, I am listening.


We know BAC is BAD, but where can you find good bank relationships for FAs?  Chase?  Indy banks?  Where is it working out for you?

Jan 25, 2007 12:52 pm
My Inner Child:
BankFC:
My Inner Child:
BankFC:

I appreciate this gracious, although unnecessary, vote of support for the bank channel.  I feel no need to define my success based on anything other than the achievement of mine and my clients goals.  This was no different than when I worked at ML.


Those who have some sort of animosity towards "bank brokers," which couldn't be more general.  At least EDJ is somewhat homogenous in it's training and culture.  Bank brokers come from such a variety of backgrounds, it is impossible to catogorize the channel at all.  Much like wirehouses come to think of it.


Here are the reasons why I am glad I moved from ML to my bank (and left behind my clients)


1)  250 million in deposit base, and strong comm dept to refer business versus continued cold calling and networking events and 60 - 70 hour work weeks.


2)  Constant feeling of "sharks in the water" anytime you spoke about prospective customers at ML


3)  Took a long look at product, and other than niche structured deals, the bank b/d had everything ML had.  Consequently, the b/d has been since bought by LPL, so I look forward to having EVERYTHING again


4)  It's never a bad thing to be tight with a bank as I have learned


5)  One day I might go back, or maybe I'll go indy, but in the mean time I'm bringing in about 15 million a year with no connections other than my employer.  That could not be done at any wirehouse.



Why do I have a hard time believing that you're snatching up 6% of the bank's assets every year? Once again, you are caught in a lie.



Again, you're lack of basic understanding of how brokerage works shows why your just an EIA whore.


About 60% of my business is QUALIFIED money, mostly coming from ROLLOVERS of 401K's of customers of the bank.  This doesn't affect the deposit base at all.  I rarely turn a CD buyer into a mutual fund buyer.  What money I do take out of the bank is usually idle cash in money markets, from sale of property, inheritence, etc.


Maybe you should learn a little about the business before you start calling people liars.  You'd at least HIDE your stupidity then.



Then why have you been bragging about your bank's tiny asset base, liar?



Where did I "brag" about it?  I noted MY BRANCHES asset base (not the bank as a whole).  Again, I am tired of holding your hand through these basic concepts.


You make yourself look more ridiculous by the day.

Jan 25, 2007 1:10 pm

The short time I worked in a wire (circa 1991) I remember there was something called "broker of the day".   When your day came up you got any walk-in business.


Working in a bank setting makes us "broker of the day" everyday.


Mind you, you can't rely solely on walk-in business in most bank programs.


scrim

Jan 25, 2007 2:00 pm
vbrainy:

Good stuff, I am listening.


We know BAC is BAD, but where can you find good bank relationships for FAs?  Chase?  Indy banks?  Where is it working out for you?



I have never met or heard of a happy broker at a large bank (i.e. Wells Fargo, US Bancorp, BAC).  However, I know plenty of happy brokers who work at small community banks and credit unions.

Jan 25, 2007 8:44 pm

I was a bank rep and loved it until my production got up there. 
Then it just seemed what I wanted to do was out growing the bank
channel.  They wanted me to move more to pirvate banking, but that
was about a 80% cut in pay. 



I left and it took me a few years to build back up to my pre-exit
production, but the lack of ceiling and incredible support took me well
beyond my bank production, and I have about 15 more years to work.



It seems as thought many of the banks are changing though, and for
those who want to be multi-million dollar producers in there I hope it
does.  As for the rep who wants to crack $500k in production and
have a nice go of it...the bank is a pretty good gig!

Jan 25, 2007 9:01 pm

rightway how big was your book when you moved and how much did you move?

Jan 26, 2007 7:59 am

Not sure of the size in terms of AUM (it was never officially tracked),
but I was doing over a million in production, with about 1/3-1/2 of
that coming from trails and fee based.



At the end of my first year at ML I has 35 mil AUM  100% fee
based.  An importnat note here is the typical size of my client at
the bank  was less than 100K.   I transferres about 95%
of what I targeted during my initial transition, but I targeted less
than 10% of the households I had at the bank. 



What I did is unusual in that I was basically started over, and I knew
that...but I had my reasons.  Most thought I went off the deep
end, especially the former bank management, but they were wrong, as
usual. 



I have mentioned many many times out here that your business model and
personal happiness should drive where you work and success will
follow...almost always.  We should stop taking shots at each
others programs and just learn from what is happenening and evolving.