Several financial institutions differentiate between brokerage, trust, and private banking when providing service to clients. However, experts believe banks and credit unions would stand to gain by adopting an integrated service method to augment the client experience.
An extensive study has confirmed that customers prefer seamless service in a way that enables quick access to accounts.
Firms’ must overcome changing technology, consumer demands, regulatory needs and operational contingencies. Legacy systems and ineffective processes also create problems.
Active investors, as well as, active traders provide a significant opportunity for firms with aggressive growth rates in the future. There has been a substantial increase in importance for bank-brokerage integration in response to the growth in the segment.
The progress for a greater incorporated bank/brokerage model is steered basically by the evolution of the investor in the US.
The development has been slow, interrupted by internal/external factors like budget, resource and technology restrictions. The acquisition of Merrill Lynch by Bank of America led to an integration of the bank and brokerage, which resulted in the launch of Merrill Edge.
This was a distinctive milestone and implied a process towards the integration of the bank-brokerage for the institution and other stakeholders in the sector.
Modifications in existing technology in recent times have resulted in the bank-brokerage consolidation for channel growth. Consolidating online banking with online brokerage could be a technical process, which would often include modifications to sales, customer service, branding, and products among others.
However, the existing customers must not be impacted by any service disruption. The complete integration must provide a seamless option to expand the current relationship and any deviations at the time of the transition could impact the customer experience.
Bank-brokerages would focus on integrating services with a specific emphasis on distinct sign-on, real-time money transaction, and the capability to access holdings covering various accounts.
Any more assimilation would focus on integrated banking and brokerage performance metrics, pre-filled account data for easier account opening, and integrated banking-brokerage mobile apps.
Clients would prefer access to the banking and investment data expeditiously from multiple locations. The digital concept impacts many technologies, devices and channels like social media, mobile, tablets and online.
As far as online brokering is concerned, mobile trades through mobile apps have increased 100% in the recent past. For brokers providing banking and brokerage services, there is a distinct opportunity for differentiation in the mobile channel by facilitating the integration of mobile banking and mobile brokerage.
In order to be competitive, firms seeking the bank-brokerage model would have to focus on augmenting the trading platforms. Huge trading volumes and the utilization of complicated trading strategies ensure the active investor/trader is profitable across segments.