The industry trends and problems, listed below, can be stumbling blocks. However, if properly addressed, they can provide additional Income Streams!
Major Issues Facing Banks Developing Insurance Sales:
- Consolidation of financial services (banking, insurance, investments) is here!
- They talk in 3 different languages.
- They have 3 different cultures.
- Industry trend is to work with top 15% high income / net worth customers.
- Lower 85% is too costly for hands on services.
- Installing insurance programs takes an average of 6 years to be profitable.
- Industry shows six different insurance sales models to market insurance products in the banking environment.
- Paying high consultant fees with little or no return.
- Large capital outlays buying existing companies (insurance agencies, investment firms, etc.).
- Finding the right sales personnel to fit in and be successful in the banking culture.
Are there any Solutions to these Problems?
How can you have additional Income Streams without the expense of additional Profit Centers?