BT Financial Group is seeing results from a drive to increase the proportion of its high net worth banking customers who also use the group for their wealth management needs.
Westpac banking group has more customers – with $10 million or more in footings (deposits or lending) than any other bank – but has a very low wealth penetration among that group, according to BTFG chief executive Brad Cooper.
The group last year went through a process to set up a business transformation team – including the appointment of John Shuttleworth as general manager of platforms, marketing and communications – with a view to breaking down the silos between the banking and wealth businesses, and now has a very integrated offer, Cooper said.
Referrals into the business are up 72 per cent, and many customers who need or want advice are getting straight referrals into the group’s financial planners, he said.
"In the past, every branch needed a financial planner, or different planners looked after different branches… the increase in numbers of customers is [the result of] a better referrals process and having more advisers based in areas of highest need," he said.
"In the bank channels, if you’ve got a great quality financial advice capability with referrals going in there, there’s still a need for quality financial advice."
He said some people trust the group because it is a big name brand, and some people trust independent planners more because they’re independent.
The group has been very focused on bank distribution as well, and currently upwards of 45 per cent of flows from financial advisers are coming through BT platforms; and although flows have been slow, you’d rather be getting a lion’s share of the flows that are out there, Cooper said.
According to BT general manager of advice Mark Spiers, there has been an increased number of first interviews over the past four to five months of heightened volatility, with approximately 1,400 first interviews per week from Westpac financial planning, as well as St George and Securitor.
