Financial Institutions

Until recently, financial institutions viewed retail investments and financial services as a complementary service, not a core offering.  The enormous retirement opportunity, increased competition, compressed profit margins and growing consumer demand, however, are determining the need for banks and credit unions of all sizes to offer a full suite of financial products and services.


Establishing a relationship with Kella Financial, instantly offers partners access to a team of experienced industry leaders, who have spent the majority of their careers supporting advisors and financial institutions.

A successful financial services business can generate consistent, meaningful fee income, helping institutions mitigate its spread dependency, replace a portion of lost fees, and diversify its non-interest income streams.   There was a time when banks and credit unions held a significant share of the retirement market.  During the 1990s, financial institutions held a sizable portion of their customers’ retirement assets, but today banks and credit unions hold a much smaller percentage of the market.  While banks and credit unions were focused on growing their deposit and loan offerings, financial firms like broker-dealers, insurance carriers, and investment managers succeeded in positioning themselves as the providers of choice for retirement solutions.

It’s not too late for banks and credit unions to recapture their share of the retirement market.  Customers continue to place a considerable amount of trust in their bank and credit union, and welcome any guidance or advice they can get regarding their retirement or any other financial goal.  Offering financial services can help banks and credit unions expand existing relationships, increasing customer wallet share, while also attracting new clients.  It’s not unusual to learn that banks and credit unions that hold a client’s retirement account typically acquire a greater percentage of that client’s deposits.  Accordingly, that customer is generally a more profitable relationship than those customers who have their retirement account held at a different financial institution.

There are a number of reasons why a financial institution would consider outsourcing its financial services business.  To remain competitive in this arena typically requires a sizable capital investment in technology, marketing and the ability to recruit experienced financial professionals.  This can present a challenge to some of the smaller institutions, since profit margins are already compressed due to increased costs related to complying with new regulations that have been implemented as a result of the recent financial crisis.  Smaller financial institutions may also lack the requisite talent needed to lead these businesses.

Kella Financial will work with you to determine the best solution for your institution.