There is a federal exclusion for banks to offer investment management services without having to build out wealth management.  Why not take advantage of it and create totally accretive contribution margin from a customer base that will go elsewhere for financial services if you do not provide it to them?

​

Smaller institutions are leaning against the headwinds of:

​

• regulatory pushback on non interest fee income (overdraft, pre-paid card fees,  etc.)

• flattening and even inverted yield curves

• long term trends in contracting NIM

• slowing loan production

• recessionary credit deterioration

• branch closure economics

• acceleration of BaaS 

• employee wage inflation

 

all while trying to fight the combined competition from:

​

• broader full-service banks

• aggressive cross selling broker-dealers

• ultra slick direct to consumer fin-techs

• embedded finance solutions

• neobank, pay-by-bank, crypto and defi payment protocols

Exacerbating the pressure is the continued rise of omni-channel product marketers creating digital pathways into consumers that make younger Americans less loyal to one financial institution and reinforces the trend to have accounts at multiple institutions. This clearly means a steep upward slope of increased competition for traditional borrow and lend only institutions and more than ever speaks to the need to broaden service offerings that will capture more of your depositors’ financial services revenue.

Also worth noting: bank valuations have historically been rewarded for prudent off-balance sheet and low capital usage activities compared to just the main-line financial intermediary business of taking deposits and making loans. Not surprisingly the traditional pursuit of loan making is seen as - and valued as - a utility business rather than a strong generator of value.  

However, the most immediate and largest impact on contribution margin can come from adding wealth management.  If you can imagine all of your customers' liquidity events - like from an inheritance or cash build up from their entrepreneurial endeavors - you can interdict those large deposits before they move out to a full-service bank, broker-dealer or fintech.

 

 

 

 

 

 

 

 

 

​

 

 

 

We can offer fully ESG wrapped portfolios and even crypto positions.

​

This is on-brand, fully digital and we pay you referral fee generation for as long as we service your customer's account.

 

We handle the client regulatory and platform technology lift and our platform costs you zero to implement and zero to operate.