By contributor Lysa Fitzgerald, Vice President of Sales at Manulife Bank.
Why it’s worth engaging clients on their banking needs.
Advisors want to make the most of their time with clients by focusing on managing their wealth and insurance needs, so the idea of discussing banking products might fall by the wayside. But when you take a step back, everything that comes an advisor’s way starts with someone giving them money from a bank account. So, why wouldn’t advisors want more insights into how clients are deploying those funds?
Increasingly, advisors are discovering that talking about bank deposits offers valuable benefits and doesn’t take a lot of time to explain.
By helping clients get more for their money with simple products such as bank accounts, advisors can strengthen their influence on financial decisions. In turn, this can help improve client satisfaction and loyalty, while increasing cash flow for investment portfolios and insurance plans.
Add value, increase loyalty
Choosing the right mortgage, line of credit, credit card, and even a daily banking package involves a lot of decisions. Advisors can add tremendous value by showing their clients a better way to bank. When a client’s needs have been met using these services, it can be a good reminder of the value that an advisor can bring to their lives.
From an advisor business standpoint, it’s prudent to get involved in deposits for other reasons. A lot of hard work goes into building the relationships needed for clients to direct a portion of their income to investment and insurance recommendations. But advisors can also face the risk of losing clients. Every traditional and virtual bank, robo-advisor, and even some retailers want the cross-selling opportunities that bank accounts provide. Recommending deposit products strengthens the client-advisor bond and reduces the possibility of competitors gaining a foothold.
Traditional wealth and protection products may not be top of mind until they become more important later in life, but banking products support daily financial decisions. Feedback from advisors who include banking in their client conversations say clients appreciate guidance with their savings and everyday banking needs. As a result, there’s an opportunity to help clients decide on the best way to direct idle money toward their short- and long-term goals.
High interest savings solutions
Putting idle money to work is always a win for both client and advisor – and there are options available.
For business clients, the Manulife Bank Business Advantage Account puts retained earnings to work with a high daily rate of interest and immediate access to cash. Advisors can help clients use this type of account to potentially migrate more retained earnings into higher-yielding investments.
For personal clients, the Manulife Bank Advantage Account is a combined high interest savings and chequing account that pays a premium rate on every dollar while providing immediate access to cash. By simply maintaining a $1,000 balance, clients can enjoy a no-fee daily banking account with unlimited transactions.
A number of digital tools can also help to make it convenient for advisors to open deposit accounts for their clients and manage their finances.
Advisors can use BankLink through the Manulife Bank Advisor Portal to open deposit accounts in minutes—with just some client ID, and a void cheque or a funds transfer authorization. BankLink gives advisors visibility into their clients’ accounts balances, providing insight that can be helpful in financial planning conversations.
Advisors also have access to a web-based application that enables them to send a customized online application link to their client who can then complete the application themselves. Clients who prefer a paper application will have that option too.
Think of deposits like the bread and milk in a grocery store, driving traffic to your business and building customer loyalty. Every Canadian has a bank account, and advisors can help to ensure that every dollar their clients earn is working for them. Engaging with clients around deposits may be the simplest new business opportunity in an advisor’s practice today.
Advantage Account, Business Advantage Account are offered through Manulife Bank of Canada.