1. Fee Income Through Wealth Management
Barry L. Dayley, CFP®, RFC®
Executive Vice President
Money Concepts International, Inc.
West Virginia Bankers Association
July 18, 2011
Fee Income Through Wealth Management

Now, more than ever your customers are in need of Real Wealth Management services!  They are looking to your bank for direction and answers for long-term planning through the challenging financial times we are in.  Are you ready?  Do you have the answers they need? 

Money Concepts can help your bank deliver these services through our Turn-Key Wealth Management program.  Set yourself apart by offering what your customers need ... real advice and direction; provided in the way they think ... solutions, not product features and benefits; giving them what they want ... a path to financial security and freedom.  In return, your bank will cement customer relationships, obtain greater wallet share, and develop an important new profit center for the bank.

aba.com |1-800-BANKERS

2. It’s Getting Tougher to Be a Banker
Rapid Industry Consolidation
New Rules & Regulations
Fee Caps
Increased Compliance & Insurance Overhead
Asset Valuation Challenges
Higher Lending Standards

3. What Are Your Customers Needs?

4. What Are Your Customer’s Fears?

5. Psychographic Changes
Young Adult
Families With Children
Retired
Pre Post
High
Need
Loans
Checking
Insurance
Info/Advice
Investments
Medium
Low
 Info/Advice

6. The Launching of an Industry
The Sigmoid Curve
2030 A
2005
1980 A B A
Commoditization Stage B
Innovation Stage
Birth Stage
“The Critical Epoch”
Source: Financial Advisor Magazine, Thinking In 3-D, by Monroe D. Diefendorf, Jr.

7. Forces Driving Fee-Based Pricing
Bank adoption of fee-based pricing
Pursuing more affluent clients
Establishing deeper client relationships
Benefits of recurring revenues
Preferable way to conduct business
Demand for advice/guidance/aggregation drives more advisors to intermediary channels
Intermediary channels often hold accounts in omnibus fashion, which prohibits fund co’s from contacting, tracking, retaining clients
Proliferation of product has caused a commoditization of asset management
As asset managers becomes less unique and lose their ability to retain and draw clients independent of intermediaries, they lose leverage to distributors
Source: Cerulli Associates

8. Assets Under Management

9. Business Growth Illustration
Year
Assets
Client Count
Income 1
$ 5,400,000 36
$81,000 2
$11,232,000 65
$174,150 3
$17,530,560 94
$279,882 4
$24,333,005
122
$391,913 5
$31,679,645
151
$510,746 8
$57,437,789
178
$859,722 10
$78,227,437
197
$1,137,569
$ Assets / client, 2% fee

10. Holistic Wealth Management
What Is The Answer For Customers?
Holistic Wealth Management

11. What Is What is Wealth Management? WEALTH MANAGEMENT?
Wealth Management is a specialty of financial planning.
As in the case with any professional financial planner, the wealth manager’s focus is the client. His efforts are devoted to helping clients achieve life goals through the proper management of their financial resources.
The practice of the wealth manager is holistic and individually customized.

12. What Is What is Wealth Management? Retirement Planning
Retirement Income Planning
Estate Planning
Wealth Transfer
Investment Management
Asset Protection
Senior Care
Tax Planning
Family Issues
Charitable Concerns

13. THE TRADITIONAL INDUSTRY PARADIGM
BANKING

14. PARADIGM
THE WEALTH COACH
“YOUR BANK”
Banking

15. PARADIGM

16. The Gonzalez Family

17. The Gonzalez Family CASE 1 Gonzalez Original Amount Year 1 Year 2
Total
Disability Income Insurance
$45 / MO
$540
$54
$756
Life Insurance
$100/ MO
$648
$108
$1,080
Systematic Investment
$50 / MO
$18
$72
$1,206
$180
$1,908

18. The Jones Family

19. The Jones Family CASE 2 Jones Original Amount Year 1 Year 2 Year 3
Total
Enterprise 360 Fee
$500
$3,000
Lump Sum Investment
$37,000
$592
$639
$691
$746
$805
$3,473
Life Insurance
$1,100
$660
$110
Systematic Investment
$300 / MO
$144
$720
$1,896
$1,943
$1,245
$1,500
$1,559
$8,293

20. The Wells Family

21. The Wells Family CASE 3 Wells Original Amount Year 1 Year 2 Year 3
Total
Enterprise 360 Fee
$2,000
$1,000
$7,000
Asset Management
$1,250,000
$10,000
$10,800
$11,646
$12,594
$13,605
$58,666
Life Insurance
$25,000
$16,250
$2,500
$1,250
$22,500
Long Term Care
$6,000
$3,300
$600
$5,700
$31,550
$14,900
$14,514
$15,447
$16,455
$93,866

22. Providers of Financial Services Since 1979
THANK YOU
Thank You!
Money Concepts International. Inc N. Jog Road Palm Beach Gardens, FL 33418
Barry Dayley, CFP®, RFC®
Executive Vice President
Tel: (561) Ext: 5050
All Securities through Money Concepts Capital Corp. Member FINRA/SIPC Money Concepts Advisory Service is a Registered Investment Advisor with the SEC All Non Securities and Non Advisory Products through Money Concepts International, Inc.
Providers of Financial Services Since 1979