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Consulting Services for Banking Institutions:
Selection of initial
investment services program
A banking
institution which is considering offering retail investment services is faced
with a plethora of options and myriad questions. Our job is to describe the
options succinctly and clearly and provide management with solid information and
thoughtful answers to questions. Through information and advice, we transform
chaos into order.
The process begins with helping
management clearly define its goals and objectives in the investment services
arena. This becomes the basis for consideration of the various options which are
appropriate to the defined goals.
For most institutions, the
appropriate option is to enter into an agreement with a third-party marketing
company.
In this scenario, ABC will:
- Advise management on the
various types of third-party firms (full-service, discount, specialty
products) and what they do.
- Advise management on the
various types of programs offered (dual-employee, managed, platform, independent
contractor, wholesale, full-service, discount, etc.) and the advantages and
disadvantages of each.
- Advise management on the
various types of investment services offered and who offers them.
- Provide information about
the third-party firms that fit the institution’s goals and objectives.
This includes:
- detailed information
about the size and structure of their client base
- their ownership
structure
- volume of their business
by type of product
- the training services
they provide
- the point-of-sales
materials and systems they use
- the marketing services
they provide
- the investment services
they provide to customers
- their major product
vendors
- their clearing services
- the type of software and
technology used
- the structure of their
payouts to banking institutions
- their experience in
working with banking institutions
- our judgment regarding
their management expertise and reputation
- Work with the
institution to narrow the field of third-party candidates, review their
contracts, discuss matters of concern, and provide advice on pricing and
other negotiable issues.
To contact us about these
services click here.
For some institutions, the most
appropriate option is to form its own brokerage subsidiary and/or insurance
agency.
In this scenario, ABC and its
strategic partners will:
- Help management determine
the capital requirements of the new entity
- Provide the framework for
completing the regulatory application process
- Provide advice and
assistance regarding:
- compliance issues
- books and records
requirements
- rep registration and
training issues
- marketing and sales
issues
- product vendor
due-diligence and selection issues
- clearing firm options
- processing and reporting
systems
- Provide management advice
and assistance regarding all other matters associated with establishing an
in-house operation.
For consulting services
regarding existing investment services programs, click
here.
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