Banks ignore investment industry

SBJ Staff

Posted online September 19, 2005 | 11:00 pm

Competition is heating up in Springfield’s bank-based investment industry with The Signature Bank luring Nadia Cavner from U.S. Bancorp and U.S. Bancorp’s subsequent move of Don Gass to Springfield. But a new study shows most banks aren’t capitalizing on their securities capabilities.

A recent Maritz Research survey shows that only 10 percent of investors polled claim that banks are their primary investment provider.

It further shows that 70 percent of investors select a full-service brokerage firm for its range of investments while only 59 percent of bank customers select their bank for this reason.

But there is a bright side for banks: 93 percent of respondents state that their bank broker has earned their trust, and 86 percent say their bank broker treats them ethically and honestly.

Also, two thirds of high net worth clients ($250,000 or more in investable assets) are more likely to use multiple firms.

Banks have been allowed to sell securities to the public since 1999.

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