Brokers can thrive in a bank culture

I read the article, "Can reps who stay thrive in banks' culture," which appeared in the Oct. 6 issue.

I read the article, “Can reps who stay thrive in banks’ culture,” which appeared in the Oct. 6 issue.

After three decades of experience in building sales teams within larger organizations, I firmly believe that brokers can indeed thrive in a bank culture. In fact, creating an environment where they can thrive is the best way to build a successful program.

I am in the bank brokerage business, and was hired seven years ago to build a thriving, robust brokerage operation within the walls of Susquehanna Bank, which operates more than 235 branches in the mid-Atlantic region. Before that, my experience was performing a similar function for a third-party marketing firm and broker-dealer, managing and building between seven and 10 bank programs simultaneously in four states.

I felt compelled to offer my insight because anyone reading the article and considering employment in a bank brokerage program would have the impression that bank brokers are salaried employees who don’t earn comparable dollars to wirehouse brokers or planners; there is almost no sales culture within a bank, with bank brokers assuming a more passive role following up on an endless stream of referrals from the bank; bank programs offer little or no entrepreneurial spirit; and bank brokers are more inclined to be financial planners, versus highly paid salespeople.

I would like to counter this impression with the perspective I have on bank brokerage operations:

Typically, bank brokers aren’t salaried employees. I am sure that you can find a few programs across the country that pay a salary to their brokers, but I have never seen a salaried program that has a high level of success.

Good salespeople aren’t very enthused by a salary.

How do you set sales goals for an individual on a salary? A key reason why it is extremely important for the broker to be well paid is simple: retention.

It is a fact that losing a broker will cost the program no less than six months of revenue and in many cases, nine months to more than a year.

A very simple rule that I live by is this: Pay them, and they will come; pay them more, and they will stay. Better to pay aggressively on the front end than to lose a broker and have no revenue stream for an extended period of time.

Sales cultures vary from bank to bank. The larger institutions tend to develop “hard goals” for the retail staff.

Implementing goals that must be met “or else” works in some environments, but a better plan is to create incentives for all staff members to work together to improve each and every banking relationship. Cross-training and education is a better plan, instead of using all stick and no carrot.

This takes more time to build, but a longer-term, solid culture can be built if the executives and senior management team are committed. A good plan to build a solid sales culture involves the brokers doing outreach, education and simply integrating themselves into the branch family.

Sales cultures vary, but in most institutions are strong, robust and eager to grow.

We pride ourselves on fostering a positive, conducive environment for those who want to build their own business: entrepreneurs. We make it clear from the beginning of an interview with a candidate that our environment is extremely entrepreneurial.

Our brokers are some distance from our main office of operation and in most cases, many miles from each other. We only hire those who are willing to build their own business, a franchise, and who will not look to our management team to solve every crisis or fight every battle.

Another of my credos is, “If I have to worry about where a broker is at 9 o’clock on Wednesday morning, I’ve got the wrong person.” We are the picture of building the entrepreneurial spirit.

Finally, fee-based financial planning has its place, but the high demand for revenue to the bank, as well as creating a “plan” where it is simply not warranted, isn’t the best process. We sell a high-volume amount of packaged products (annuities, mutual funds, insurance, etc.).

Most of our brokers have the appropriate licensing to offer fee-based planning. However, the situations where it would be attractive to our client base represent a small percentage and in fact would be the exception, not the rule.

Victor Pulizzano
Senior vice president
Director of retail investments and manager of financial services
Susquehanna Wealth Strategies
Lancaster, Pa.

Advisers must provide value in terms of performance

I enjoyed the article “Cash is now new king” that appeared in the Oct. 27 issue.

As financial advisers, we need to recognize that the days of easy (passive) investing are over. To remain competitive, advisers must provide more value when it comes to portfolio performance.

It isn’t just about the relationship anymore — it is about portfolio performance.

During the past few decades, our industry has shifted the focus away from what investing is really all about: growing and protecting wealth.

Brian A. Schreiner
Vice president
Schreiner Capital Management Inc.
Exton, Pa.

Health care is huge problem on multiple levels

I agree with the Just Thinking column “I repeat, mend the health care system” that appeared in the Oct. 27 issue.

There are huge problems on multiple levels, the primary one being a looming social crisis.

Also, many corporate players in the business have fees and business models tied to the pre-September 2008 economy, which was more about short-term profits/bonuses and stock prices.

The economics of this huge, vital industry are going to tumble just like real estate with a domino effect.

Peter DeCicco
President
DeCicco Associates Inc.
Fairfield, Iowa

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