Switching from one major bank to another can involve risks, but the benefits for relationship managers seeking more flexibility are clear. While a previous employer values retained clients as a success marker, smaller banks often fail to provide the necessary services. However, by choosing an independent wealth manager, RMs can mitigate risk through a multi-banking approachโeven without a large brand affiliation.
The Independent Edge
Unlike banks, independent wealth managers are not limited to in-house products. Instead, they utilise a multi-banking framework, sourcing the best solutions from various providers. These benefits for relationship managers lead to:
โ Greater flexibility โ Choosing the most appropriate investments, lending, and solutions for your clients.
โ Stronger client relationships โ No pressure to promote internal products, only those that truly benefit clients.
โ Enhanced negotiation power โ Comparing offers across banks for better terms.
โ Agility โ Adapting swiftly to new trends without the constraints of corporate bureaucracy.
โ Broader market access โ Independents collaborate with various institutions, providing diverse financial solutions.
The Reality Check ๐ฆ
Indeed, independent firms face certain limitations, particularly regarding interest-driven income. Their revenue streams can fluctuate without a lending portfolio or internal banking services. Nevertheless, this trade-off is worthwhile for relationship managers who prioritise genuine client-centric service over restrictive banking policies. Independence offers a broader and more adaptable approach to wealth management.
Rethink โRetentionโ
If a client stays with a large bank solely because their former RMโs new institutions lack specific services, is that genuinely retention? Or is it merely a temporary gap? A multi-banking approach ensures that clients do not have to compromise, while RMs cultivate deeper, personalised relationships.
The Best Move Forward ๐
In todayโs market, independence is not a weakness but an opportunity. The limitations of a single institution do not hold back independent wealth managers. Instead, they provide a dynamic, client-first approach that enables RMs to offer tailored solutions free from conflicts of interest.
An independent wealth manager is not merely an option for relationship managers seeking genuine advisory freedom; it represents the best move forward.
Source: LinkedIn
