A Moneyball Approach to Wealth Management

Baseball Ball

Smaller and midsized banks can play in the wealth management big leagues, but they have to use some Moneyball type tactics to compete and win against the big budget competition.

Before the financial crisis, a “Field of Dreams” approach worked– if you built it, they would come. An environment of deregulation, falling interest rates, a rising stock market and a seemingly unlimited supply of talent allowed banks the luxury of focusing largely on acquiring clients, almost regardless of cost. Now with compressed margins, skittish investors hoarding cash and a changing competitive landscape, new tactics are required.

In an article I recently wrote for BAI Banking Strategies, I detailed six key Moneyball strategies:

  1. Bigger is not always better
  2. Focus on the right metrics
  3. Focus on wins, not hits
  4. Look beyond allocated costs
  5. Invest, support and challenge the front line
  6. Role players can be more important than sluggers

There is no reason for smaller banks to resign themselves to the minor leagues, as long as they make the right investments in their wealth management business and establish the right metrics to manage them.

Read the entire article here: BAI Banking Strategies: A Moneyball Approach to Wealth Management

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