CHICAGO, Oct. 29, 2020 /PRNewswire/ — Today, the Bank Insurance & Securities Association (BISA) released part two of their cutting-edge research report – Smart Investment 2: How Investment Services Drives Growth of Banking Services, Supporting A Mass Affluent Strategy – that explores the role of investment services in maintaining or growing deposits and lending and investment services penetration of the mass affluent and its relationship to the institution’s mass affluent strategy. Part one of the report – Smart Investment: Evaluating the Total Return on Investment Services to the Banking Enterprise – was released in November 2019.

The role of investment services in a financial institution’s ecosystem is complex. To provide visibility into these relationships, the Bank Insurance and Securities Association commissioned Kehrer Bielan to survey depository member institutions about the extent to which investment services disintermediate deposits, and successfully refer clients to the institution for deposits and loans.

“Last year we confirmed that establishing an investment relationship with a customer increases that customer’s loyalty to the financial institution, their use of banking services, and the income of the overall banking business,” said Kenneth Kehrer, PhD, of Kehrer Bielan Research & Consulting who was commissioned by BISA to conduct this data-driven research. “This year we found that investment services has even greater leverage in supporting an institution’s strategy of penetrating and retaining the coveted mass affluent segment.”

The two phases of this research have demonstrated that developing an investment relationship with a bank or credit union’s customers, particularly mass affluent clients, increases their loyalty and their use of the institution’s deposit and lending products, both because

  • the investment relationship cements the institution as the client’s primary financial provider, and
  • the efforts of financial advisors to identify opportunities to move the client’s outside banking activities to the institution.

Key takeaways from the report include:

  • Financial institutions each have somewhat different criteria for which households they identify as mass affluent, but by their own definitions, mass affluent households loom large, accounting for 30% of an institution’s customers, 44% of their investment clients, and more than half of their investment services assets and revenue.
  • The investment services business in financial institutions achieve much higher penetration of these coveted mass affluent households than they reach with the mass market. While only 5.6% of a typical financial institution’s customers have an investment relationship with the institution, 21% of the mass affluent customers have invested where they bank.
  • Mass affluent customers with an investment relationship are 43% more likely to exhibit strong loyalty to the institution, and use 41% more banking products and services.
  • That lift in customer loyalty and use of deposit and credit results in a significant impact on banking income. A one percent increase in investment services penetration of the mass affluent leads to a 4.7% increase in the income from deposit and credit balances from this segment.

To learn more about becoming a member of BISA and obtaining the report, contact [email protected].

The Bank Insurance & Securities Association is the leading financial services industry association dedicated to serving those responsible for the marketing, sales and distribution of securities, insurance, and other financial products and advisory services through the bank channel. Member companies include depository institutions of all sizes, their broker/dealer and mutual fund subsidiaries, third-party marketing companies, product manufacturers and firms providing products, technology or services to support these enterprises. For more information, visit

SOURCE Bank Insurance & Securities Association (BISA)

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