The key objectives of credit union investment programs are to establish awareness of the program and grow revenue. To ensure the success of your investment program and financial advisors, here is a step-by-step process that will help any program – start-up or existing – to achieve its goals.
Establish strong communication with program managers
Most financial advisors in a credit union work in dual-employee, managed, or hybrid-managed investment programs. In a dual program, there is a dedicated program manager employed by the credit union. In managed or hybrid programs, the program manager is employed by the broker-dealer and may have several programs to manage. There may also be a regional program development manager that oversees multiple program managers.
Establish good communication channels with all these program managers. They have the same goals: To remove hurdles, help with integration, provide marketing support and provide access to additional resources. They also clearly understand the chain of command and organizational structure of the credit union so they can help advisors streamline communications.
Conduct personalized program assessments
Performing a production study every year is essential. Production studies go beyond the typical age-based and AUM breakdown of your business by taking a three-tiered approach – a detailed assessment of "branch, book and marketing" to engage executive management, program managers and advisors. Production studies provide you with specific analytics, benchmark data and the direction needed to increase your annual business by at least 25% in a year.
Target the right demographics to improve results
It is critical to identify ways to segment your advisors' books of business to target the right audiences with the most opportunity. It's typical for the top 20% of clients to account for the majority of revenue generated in programs. Segmentation of the book – and occasionally offloading of the lower half or two-thirds of it to another representative – often improves the quality of communication and deepens relationships with the entire client base, prompting AUM increases and better referrals. With a smaller client load, the original advisor better engages with clients, and may bring more wallet share into the investment portfolio or the credit union. Segmentation also allows the new advisor to build better relationships with the offloaded list of clients, uncovering new assets and growing them to top 20% status.
Implement technology that advisors and customers crave
Surveys, statistics and decreases in branch traffic show that people don't want to take time out of their day for a trip to their credit union simply to sign a form. They would much rather handle their investment business when they want and where they want. By using mobile and online tools, they can review a document, sign it and send a photo of it to their advisor through a mobile app.
Implement remote delivery solutions for every stage of the client relationship: From prospecting, to developing an investor profile, to building a financial plan, to monitoring the success of the plan. Interacting from start to finish through mobile and online channels enhances convenience and efficiency for advisors and clients alike.
Integrate the program into your core offerings and make your members aware of it
Even the best programs cannot grow if no one knows about them! Educate both branch staff and members on its existence, add signage, send out emails, run workshops and offer incentives for referrals from staff. Review your production studies to assess ways to improve awareness, credibility and integration; clearly define which marketing efforts are yielding the best results; and help advisors improve the quality and quantity of both branch and client referrals – and you should see your program grow!
By working closely with your broker-dealer, taking advantage of the resources they make available, and assessing your program on a regular basis, you will grow your revenue, establish solid relationships with clients, and build an investment program that works for the long-term.
Kevin Mummau is executive vice president of program development at CUSO Financial Services. He can be reached at 858-530-4468 or [email protected].
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