Brokers at Bremer Bank are trying a new way to attract investment services business from existing bank customers: they’re teaming up with the bankers, and they’re doing so in more than a perfunctory way.
[…] Wealth Penetration Ratio
As banks struggle with rising regulatory costs and thinner profit margins, they’re increasingly boosting efforts to generate more business from existing clients and diversify their revenue streams, much like Bremer is attempting to do. Indeed, banks’ so-called “wealth penetration ratio,” the measure of how well banks have penetrated the investment services opportunity, is notoriously low. Almost half of banks (44%) have penetration ratios ranging from 6% to 8%, meaning that only 6% to 8% of bank customers have an investment product with the bank, according to Wayne Cutler, a managing director with consulting firm Novantas.
Read the full article at Bank Investment Consultant.