The largest independent broker-dealer in the United States, LPL Financial LLC, which is an LPL Investment Holdings Inc. wholly owned subsidiary, has recently revealed a number of the main findings it has discovered through a co-sponsored study which looked into the role played by insurance and investment services customers among retail financial organizations.
The study was entitled “The Value of an Investment and Insurance Customer to a Bank”. It was performed by Christine Kehrer, Kenneth Kehrer, and Peter Bielan, with the co-sponsorship of LPL Financial.
Among the primary findings that were released from the results of the research were the following:
• Households that purchase their insurance and investments from the organizations where they do their banking are among the most profitable and therefore desirable customers to a retail financial company
• These same customers have a greater likelihood to continue doing business with that company than those who have a number of different banking relationships
• When retail financial institutions provide their insurance and investment services businesses with too little investment, they are missing an exceptionally important opportunity for building the loyalty of those customers and encouraging them to stay.
According to the managing director and president of the Institution Services division at LPL Financial, Andy Kalbaugh, he was very keen for LPL Financial to be able to take on the opportunity for this study’s co-sponsorship, as the research was “which was specifically designed to help institutions see the opportunity that exists from a successful and growing investment and insurance program.”