BISA Magazine - Quarter 3, 2016 - 24

FEATURE STORY may not qualify for traditional plans. Individual accounts might be in the $40,000 range - low for current bank programs, perhaps, but Peters said that's often a client's life savings. "We're not a utility - we're a for-profit institution [that is obliged to make a profit]," Peters said. "But we believe in the community bank concept. We are there to serve the community, so we spend a lot of time on education." It's not all about revenues What about those who say banks are wasting their advisors' precious time by serving this client segment? Patricia Wood, who runs the brokerage program at Navy Federal, a Virginiabased credit union with 5 million members and $75 billion in assets, said time spent educating younger, less affluent members is not wasted. "We think it's extremely important to set our members up for success," she said, and if it doesn't translate to fee income immediately, so be it. Navy Federal recently established a new online portal for its younger members called "MakingCents" to support them in making sound financial decisions. It employs a practical, step-bystep process for buying a car, buying a home, securing a first credit card and the like. Millennials have face-to-face access with financial advisors in many of Navy Federal's 282 branches. The institution has 55 financial advisors overall, including nearly a dozen in the institution's investment center in Pensacola, Florida. But in general, younger members come into the branch looking for guidance and education, Wood said. The institution feels an obligation to set them up for the future. A long-term approach All of this obviously requires a longterm perspective and a recognition that the mass retail customer of today will be the mass affluent customer of tomorrow, said Richard Guerrini, President and CEO, PNC Investments of Pittsburgh. PNC recently developed a mutual fund advisory product for its mass retail segment, Premier Directions, which is delivered by licensed bank 24 www.bisanet.org employees (LBEs), among others. Because it is targeted to the mass retail customer, the minimum required deposit for the managed money option is low - around $10,000. Guerrini said the low minimum gives PNC's mass customer segment access to the "best thinking" of PNC's asset managers. PNC offers three call centers from which clients can get investment advice by phone from licensed advisors. In addition, PNC is building out a digital advice option. "We want to have all channels be effective," Guerrini said. "But in five or 10 years and beyond, growth in the digital channel will be front and center." 'Plant seedlings' Many people in the millennial generation are struggling to make ends meet, Berkowitz said, but one day they will have money - lots of money, in some http://www.bisanet.org

Table of Contents for the Digital Edition of BISA Magazine - Quarter 3, 2016

Table of Contents
BISA Magazine - Quarter 3, 2016 - Cover1
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BISA Magazine - Quarter 3, 2016 - Table of Contents
BISA Magazine - Quarter 3, 2016 - 2
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BISA Magazine - Quarter 3, 2016 - Cover3
BISA Magazine - Quarter 3, 2016 - Cover4
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