St George rolls out rural advice scheme
St George Bank branches have begun to refer financial planning clients to advisers within theSecuritordealer group in rural areas where clients have no access to salaried planners within the bank network.
The referral scheme, which has been trialled since January this year in 12 Securitor businesses, will be rolled out by St George, with an aim to have 20 businesses involved by September.
St George head of dealer services Paul Cullen says at present there are many locations where Securitor has a presence, but the bank is unable to economically justify having a salaried adviser on the ground. This is due to limited client numbers, as well as a tendency for advisers to move into self-employment after a short time.
The scheme is presently in operation in areas including Albury/Wodonga on the NSW/Victorian border, Lismore, Ballina and Wagga Wagga in NSW, and Southport in Queensland. St George is also looking to new business partnerships in areas such as Port Augusta and Port Pirie in South Australia.
Cullen says St George will also increase the ties that Securitor has to the bank, as it will not only be providing them with dealership services and platforms but also with leads.
“It’s just a bit of lateral thinking that says the main thing is that customers have the ability to get the advice they want, and we need to be sure that we satisfy all customers,” he says.
There are a few issues that need to be resolved, according to Cullen, such as the quality of client referrals to these advisers from bank branches.
A problem with having a salaried adviser within a rural location, is that within a year it is more economically sensible for them to move out on their own, Cullen says.
However, while in the past such advisers were forced to leave the group, the bank is now encouraging these advisers to leave and set up their own business under the Securitor banner.
He says the initiative came about through the ‘even better bank’ program, with the idea of giving self-employment opportunities to advisers having been considered by St George for some time.
Securitor head of distribution Dan Powell says the program is innovative in referring to independent advisers, and he congratulated St George on the move.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
