NEW YORK, Feb. 19, 2013 /PRNewswire/ -- Though wealth and retail banking executives are optimistic about cross-selling for peak revenue performance, senior management commitment has been a barrier to collaboration, according to a new study released today by Novantas and the Bank Insurance & Securities Association (BISA).
"As baby boomers prepare to retire and many households begin to search for longer term credible investment solutions, retail banks increasingly view the wealth business as a strong alternative source of revenue," said Wayne Cutler, partner and head of Wealth Management at Novantas and author of the study.
In fact, the study estimates that the wealth business could easily provide 15%-20% of bank revenues, given retail banks' already strong relationships with boomers and other potential wealth management customers.
"Clearly, there is a great opportunity to integrate wealth and retail," said James McNeil, Executive Director at BISA. "The key for these businesses will be getting senior management to support initiatives for collaboration."
The study outlines effective steps senior managers can take to ensure integration between the two businesses, including initiating a joint business planning process to balance the cultural barriers between wealth and retail.
The study, for which BISA and Novantas interviewed senior retail and wealth executives from a dozen major banking companies, also found that executives identified, in order of descending importance, limited "shelf space" for wealth products in the retail lineup, isolation between the wealth and retail businesses, and staff talent and productivity as other impediments to collaboration.
Novantas is the leader in customer science and revenue strategy in the financial services industry. The firm's Management Consulting, Solutions, and Research divisions specialize in investigating and interpreting customer needs, attitudes, and behaviors in ways that help companies to refine marketing decisions, customer strategies, and sales and service activities. For more information, visit Novantas.com.
BISA is the leading financial services industry trade association dedicated to serving those responsible for the marketing, sales and distribution of securities, insurance, and other financial products and advisory services through the bank and credit union channels. For more information, visit bisanet.org.