Retail Banks & the IRA Rollover Opportunity

The Road to Wealth (Management)

Banks have long sought a bigger share of the wealth management market, and the enviable stream of capital-efficient fee income that it entails. With banks’ traditional lending, deposit and transactions businesses squeezed by post-crisis regulations and low interest rates, their enthusiasm for wealth management is only growing.

The challenge for banks has always been how to break the stranglehold that more established wealth management business models hold on the market, driven both by brand loyalty and a better ability to advise clients with complex needs.  Retail Banks & the IRA Rollover Opportunity, looks at one specific “break-through” opportunity for banks: namely, making themselves the preferred destination for customers rolling over their defined contribution plans into an IRA.

This is an approachable opportunity even for banks without large wealth management functions because it is scalable without having to rely on a large highly paid staff. We argue that this is one of the best ways for a bank to build scale in, or even start, its wealth management business.

Retail Banks & the IRA Rollover Opportunity