Some Facts Agents Can Take To The Bank

Why should independent agents embrace change and adopt banking products as part of their sales culture?

First and foremost: to add value to the agent-client relationship. If an agent can bring additional competitive banking products into a community and combine these products with the agencys customarily high level of service, the client will benefit greatly and show his or her appreciation with increased loyalty.

Second: the addition of this new portfolio of products to an agencys repertoire can translate into significant and diversified revenue sources. Banking sales opportunities provide for referral fees for successful loan and deposit applications to agents. This is true for both consumer and commercial referrals.

Third: the addition of banking products will act as a measure of defense. Other financial service interlopers can disrupt an agents relationship with his or her client by cross-selling insurance along with other financial products.

Independent agents should find the barriers to entry into the business very low. Typically, there is no capital investment required. (However, certain states do require licensing in order to receive compensation for residential mortgage loans.)

Comprehensive training must be part of any good referral arrangement. High on the priority list for any training program should be a working knowledge of certain banking regulations and a thorough understanding of products.

Once training is complete, the bank should work with the agency to assist in developing a strategy and marketing plan that will be effective. The bank should view every agency differently and provide market plans to reflect that.

The focus on certain products may make sense in one community but not in another. A strategy that is successful in Boston might not work in Vineland, N.J.

The bank should also offer ongoing marketing support and “hand holding.” In short, the bank should be willing to fit the agency, not demand that the agency fit the bank.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, October 15, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

Contact Webmaster

Special Reports /

Some Facts Agents Can Take To The Bank

Related Stories

Recommended For You