The average credit union financial advisor is now generating more revenue than the average financial advisor in a large bank that owns its broker-dealer, according to new data from Kehrer Bielan Research & Consulting.
The news comes at a time when many credit unions across the country are transforming their branches into sales and consultation centers rather than teller-dominated transaction centers.
“This is the first time in the three years we have conducted the study that average financial advisor productivity in our annual benchmarking survey of investment services in credit unions has exceeded average productivity in our comparable survey of large bank BDs,” Kehrer Bielan Senior Research Analyst Tim Kehrer said.
The research firm found that the average financial advisor working in a credit union produced $444,873 in investment services revenue in 2014, compared with $440,073 for the average advisor in a large bank BD.
Gross investment services revenue per credit union advisor rose by 16% from 2013 to 2014; for advisors at bank-owned broker dealers, that number was just 6%, the study also said.
“Although unprecedented, we could have seen this coming,” Kehrer said. “Average financial advisor productivity in our annual survey of credit unions has improved three years in a row, increasing by 27% since 2012 and outpacing productivity growth in our survey of large banks.”