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.
