As a private banker, you are tasked with understanding the “big picture” of your clients’ finances–everything from their checking account to their invested assets. And as more and more banks bring financial planning services in-house, odds are, it’s more important than ever to your own financial goals to have an understanding of how these investments fit into your clients’ suite of bank services so that your overall portfolio grows.
A changing investment environment:

But here’s the challenge: In the financial advisory world, so-called “investment management” is quickly becoming a commodity thanks in large part to the many online and low-cost options that are entering the market. Many small- to mid-sized investors aren’t willing to pay the hefty commissions or fees charged by financial advisors (FAs); they believe they can accomplish their financial goals themselves for a much lower cost using self-directed investment sites.

So, in this competitive environment, how do FAs make the case for themselves? How do you prove to your private banking clients that a referral to the bank’s financial advisory arm will be worth the potential expense? It’s clear: Both you (as the private banker) and the financial advisor you are referring to must really know the client and their business.

Getting inside the private banking clients mind:

Many private banking clients are professionals and/or business owners. To add true value to these potential investment services clients, your bank’s FAs need to educate themselves on these prospects’ businesses through industry research. The FA must offer insights that the client will feel are worth their money and thus incentivize them to keep their comprehensive financial relationship with your bank.

Obviously, a client’s individual risk tolerance will always be a critical factor in giving financial advice, but knowing key details about the client’s industry–risks, trends, opportunities, etc.–can really help the FA tailor their discussion and better advise the client on various long-term planning options.

An insightful way to plan for calls:

The stock market has been hot, and a lot of portfolios are up. For both private bankers and your bank’s financial advisory team, start creating real value that contributes to your clients’ long-term financial success by doing your pre-call planning using the top-notch industry research found on Vertical IQ. When you understand the trends, challenges, opportunities, etc., associated with a client’s business, advisors (and bankers) are able to offer them a wealth of knowledge–a value-add that many clients will see as well-worth their investment!



Chris Suggs | Senior Sales Director