Cetera Financial Institutions is a marketing name of Cetera Investment Services LLC, member FINRA/SIPC.
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Maximizing Your Customers’ ExperienceIntegrating Holistic Growth Within Your Wealth Management Offerings
Catherine M. Bonneau President and CEO
Tim Bush Senior Vice President
Bell State Bank and Trust
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Catherine M. Bonneau President and CEO, Cetera Financial Institutions
30-year industry experience centered in retail financial services with an emphasis on the high-net-worth market
Held executive leadership positions at ING Trust USA, BankBoston (now Bank of America), Bank of New York and Citibank
Cetera Financial Institutions is a self-clearing, registered broker-dealer delivering customized investment and insurance solutions to nearly 500 financial institutions nationwide
Cetera Financial Institutions is an affiliate of the family of broker-dealers of Cetera Financial Group, the retail advice platform of RCS Capital Corporation (NYSE: RCAP)
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Tim Bush Senior Vice President – Wealth Management
Division, Bell State Bank and Trust
Honored recently by Bank Investment Consultantas one of the Top 20 Program Managers
Bell State Bank has doubled their investment program since 2012
Total AUM of the WM division is $4.2 billion; theinvestment program alone is $450 million
Currently, it’s 20% of the wealth management division’s revenue and 2% of the bank’s total
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Today’s Agenda
State of current affairs
Missed opportunities
Good news
Building client relationships
Bell State Bank: Wealth management success story
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State of current affairs
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Missed opportunities
“Not integrating private banking, trust, andbrokerage units … [is] leaving money onthe table and wasting opportunities to build deeper customer relationships.”
Source: Kehrer Bielan Research & Consulting
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Missed opportunities: Unmet client needs
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Understanding client behavior
Trust clients keep $2 of their financial assets with full-service brokerage firms and financial
planners for every $4 they hold at financial institutions.
39% maintain a brokerage account at a full-service brokerage firm.
57% of private banking clients hold much of their assets in financial institutions.
39% 57%
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Good news: How big is the opportunity?
The average balance in asset management
accounts: $547K for trust and $348K for private banking clients.
Almost 20% of private banking clients own an asset management account, as do
almost 12% of trust clients. The situation is nearly the same in advisory
accounts: $1.5M for trust; $357K for private banking clients.
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Good news: Preference for financial institutions
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And the good news continues…
Trust and private banking clients are more than 4x more likely to say they have “a great deal of trust” in their bank compared to full-service brokerage firms.
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Building client relationships: Increase client loyalty and services
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Building client relationships: Holistically integrating wealth management
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Bell State Bank model New day – New leadership
Rules of engagement – Investment collaborates with Trust
Portfolio Model Management
Trust gives back
Advisory business jumped from<1% in 2012 to nearly 4% in 2013.Key driver in product mix growth in 2013 (over 2012) was Direct Alternative Investments. The product mix for DAIs in 2012 was 6% and that jumped to 37% in 2013.
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Bell State Bank is seeing GREEN
$25MM
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Bell State wealth management process
All Equity All Fixed 80/20% Blend Cetera Strategies
Market Outlook Rebalance Trades Communications
2-1/2 Days Now 1 HOUR!
Discovery Common Allocation ModelsCollaborationInvestors
Research
Portfolios
FolioTrading
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Referral success
$23,314,605
$3,788,368
$27,102,973
$1,614,557
$24,929,162
856
31,662
92%
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Further resources
Read about this topic and other industry best practices in our Thought Leadership section on our website.
Cetera Financial Institutions ceterafinancialinstitutions.com
Contact Mary Jo Wallenstein [email protected] 320.656.4336.
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Questions & Answers