Forty percent of bank-based advisors say that cross-selling is critical to their business, according to a Bank Investment Consultant survey. Still, most said they received only a fraction of their business referrals—less than one-fifth—from tellers and retail bankers. "This is the biggest ball that firms drop," says Rick Rummage, a consultant who works with advisors. (Rummage, a regular contributor to Bank Investment Consultant, wrote an article about common mistakes made by advisors). "The biggest disconnect surrounds the incentive plan. They just don't get it," he says, referring to bank management teams. He says that up to 70% of bank managers or executives have never been paid on commission. He also notes that up to 40% of institutions don't give incentives to bank employees to send referrals for financial advisors. "How are you going to get them to send you referrals if they don't get any compensation?"
(To view BIC's survey results, click here.)
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