BISA Magazine - Quarter 4, 2017 - 13

A CHANGE
FOR THE
BETTER
Vendor-bank relationships are getting
stronger and deeper
By Andrew Singer

T

he Department of Labor's
fiduciary standard continues to have an impact on
the bank/brokerage industry in unexpected ways. It
is changing the relationship between
banks and their product suppliers in
terms of support, particularly in the
training sector.
"I'm seeing deeper relationships [with
vendors] where the banks are getting
more and better training, far beyond
what's necessary, to just support the
sales of their particular products," says
Paul Werlin, president at Human Capital
Resources, Inc.

Trending Toward
Education
The fiduciary rule catalyzed this trend,
as it required financial advisors to act
in the best interests of their clients
when overseeing retirement accounts.
To that end, education became a central
component of selling their products,
and it is permeating out to other sectors of banking and insurance.

But Werlin says there are also secular
reasons for this trend: basic economics,
better delivery systems and a thinning of the sheer number of product
relationships. These are leading bank
broker/dealers (B/Ds) to form stronger and deeper relationships with
their vendors.
Five years ago, a large bank (i.e., more
than $35 billion in balance-sheet assets)
that was looking for a fixed-annuity
supplier might ask about the carrier's
rating, its current interest rate, surrender charge schedule and its commission. That was it. "They didn't want
wholesalers to even step foot in their
shop," Werlin says. "Just give me the
product" was the attitude then. They
didn't need anything else.
"There is an increase in the standards
required to service a financial institution and its clients," says Catherine
Bonneau, CEO of Cetera Financial Institutions, a third-party marketing firm.
Among other things, firms like hers
commonly supply a team to help banks
and credit unions recruit and onboard
new advisors.

13
BISA Magazine



Table of Contents for the Digital Edition of BISA Magazine - Quarter 4, 2017

Table of Contents
BISA Magazine - Quarter 4, 2017 - Cover1
BISA Magazine - Quarter 4, 2017 - Cover2
BISA Magazine - Quarter 4, 2017 - Table of Contents
BISA Magazine - Quarter 4, 2017 - 2
BISA Magazine - Quarter 4, 2017 - 3
BISA Magazine - Quarter 4, 2017 - 4
BISA Magazine - Quarter 4, 2017 - 5
BISA Magazine - Quarter 4, 2017 - 6
BISA Magazine - Quarter 4, 2017 - 7
BISA Magazine - Quarter 4, 2017 - 8
BISA Magazine - Quarter 4, 2017 - 9
BISA Magazine - Quarter 4, 2017 - 10
BISA Magazine - Quarter 4, 2017 - 11
BISA Magazine - Quarter 4, 2017 - 12
BISA Magazine - Quarter 4, 2017 - 13
BISA Magazine - Quarter 4, 2017 - 14
BISA Magazine - Quarter 4, 2017 - 15
BISA Magazine - Quarter 4, 2017 - 16
BISA Magazine - Quarter 4, 2017 - 17
BISA Magazine - Quarter 4, 2017 - 18
BISA Magazine - Quarter 4, 2017 - 19
BISA Magazine - Quarter 4, 2017 - 20
BISA Magazine - Quarter 4, 2017 - 21
BISA Magazine - Quarter 4, 2017 - 22
BISA Magazine - Quarter 4, 2017 - 23
BISA Magazine - Quarter 4, 2017 - 24
BISA Magazine - Quarter 4, 2017 - 25
BISA Magazine - Quarter 4, 2017 - 26
BISA Magazine - Quarter 4, 2017 - 27
BISA Magazine - Quarter 4, 2017 - 28
BISA Magazine - Quarter 4, 2017 - 29
BISA Magazine - Quarter 4, 2017 - 30
BISA Magazine - Quarter 4, 2017 - 31
BISA Magazine - Quarter 4, 2017 - 32
BISA Magazine - Quarter 4, 2017 - Cover3
BISA Magazine - Quarter 4, 2017 - Cover4
https://www.nxtbook.com/nxtbooks/bisa/2017q4
https://www.nxtbook.com/nxtbooks/bisa/2017q3
https://www.nxtbook.com/nxtbooks/bisa/2017q2
https://www.nxtbook.com/nxtbooks/bisa/2017q1
https://www.nxtbook.com/nxtbooks/bisa/2016q4
https://www.nxtbook.com/nxtbooks/bisa/2016q3
https://www.nxtbook.com/nxtbooks/bisa/2016q2
https://www.nxtbook.com/nxtbooks/bisa/2016q1
https://www.nxtbook.com/nxtbooks/bisa/2015q4
https://www.nxtbook.com/nxtbooks/bisa/2015q3
https://www.nxtbook.com/nxtbooks/bisa/2015q2
https://www.nxtbook.com/nxtbooks/bisa/2015q1
https://www.nxtbook.com/nxtbooks/bisa/2014q4
https://www.nxtbook.com/nxtbooks/bisa/2014q3
https://www.nxtbook.com/nxtbooks/bisa/2014q2
https://www.nxtbook.com/nxtbooks/bisa/2014q1
https://www.nxtbookmedia.com