Mixing Oil And Water: Six Steps To Selling Investments In Financial Institutions
Oil and water just dont mix; there is no point in trying. Both are needed for a high performance engine to run at maximum efficiency, but they have different functions. In banking, the oil is the bank products and the water is the non-bank products that are becoming essential for meeting todays consumer demand while providing fee income to the bank. If traditional and non-traditional financial products are properly positioned, success in the form of substantial fee income is a direct outcome.
The banking business is no different than any other; banking has changed tremendously over the last thirty years. In the past, the majority of bank income came from Interest Income, but the trend continues to shift towards fee income. With deregulation in the form of the Depository Institutions Deregulation and Monetary Control Act (1980) and the Depository Institutions Act (1982), and repeal of the Glass-Steagall Act in 1999, banks responded by offering alternative financial services. In the 1990s, increased consumer awareness led to customer demand and banks saw investment programs increase...