Bank advisors who want to expand their books of business should not overlook customers who have financial plans through their banks or credit unions. Such customers are twice as likely to purchase insurance and investment products from their institutions than those who do not have financial plans, according to a new study from LIMRA.
They are also more likely to view their institutions as places to build wealth and less likely to see them only as places to deposit paychecks and pay bills.
Another group that advisors shouldn't ignore? Millennials. According to the study, millennials have more of their savings and investments at their primary financial institutions than other demographic groups.
"Older millennials are now in their 30s and starting to build wealth, buy homes and start families," Patrick Leary, corporate vice president of Distribution Research for LIMRA, said in a statement. "They are also less likely to have a relationship with a financial advisor or insurance agent."
In addition, millennials are more receptive to financial planning than other groups. Four in 10 said they would consider a plan through their bank, compared with only 22% for other customers. The majority —60% —also said it's important to have all their financial needs met in one place.
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