Community-based banks and credit unions have been getting higher revenue from their brokerage operations than all but the largest financial institutions, researchers report.
Banks and credit unions with less than $4 billion in assets produced $1,958 in brokerage revenue per $1 million in consumer deposits in 2007, according Kehrer-LIMRA, a division of LIMRA International, Windsor, Conn.
The community financial institutions’ productivity was 10% higher than the average brokerage revenue penetration of deposits for banks or credit unions of any size, Kehrer-LIMRA researchers report.
Moreover, when expressed in terms of gross revenue per financial consultant, the community financial institutions’ average annual broker sales productivity was on par with that of much larger institutions, the researchers report.