Search CompleteMarkets

... have about 48,000 to 52,000 customers — quite a marketplace! Review the bank's capitalization. For each $100,000,000 million of assets, the bank should have at least $7.5 million of capital. Some will have more. If the bank is capitalized at less than 7.5%, beware. Capital provides the financial support that banks need to take the risk of lending their money. When capital is thin, regulators come pouring in to oversee corrective measures that you don't want to touch. Know your regulators. The FDIC, as the insurance provider, regulates all financial institutions. If a bank has National' or Federal' in its name, the Comptroller of the Currency in Washington, D. C. oversees it. If the bank's name includes State ... :00 AM by CompleteMarkets Editor , Fred Dent This content has not been rated yet. The power of the Internet as an information resource is undeniable. Use it to your advantage! In this document, Fred Dent shows you what to look for when you consider doing business with banks. Banks are selling more and more Property/Casualty products. If you've decided to join forces with a financial institution in this growing and challenging marketplace, you'll need to do your due diligence homework' to garner vital information that's readily available in the public domain. Here's how: Home in on likely prospects. Create a list of folks that you think you'd like to get to know better; and maybe do business with. Focus on community banks with several branches that have a presence within a half-day's drive ...

...ors of Traders Financial Corp., a lending institution with international corre...s a product unlike that of any other lending institution: a debt-management pr...

...at banks need to take the risk of lending their money. When capital...nsurance and annuity sales by the institutions they oversee. You’re...

... payment. Unsecured Loans In the lending industry, there are several loans yo...ed traditional loans by financial institutions due to their poor credit scorin...

...bank, private investor, etc.) and lending that money at a higher rate...ing/software vendor introduce you to lending sources that specialize ...

... ratings for direct response channels are relatively low, many banks believe they add value by increasing market awareness. Likewise, such branch distribution efforts as placing agents in branches (used by 36%) and licensing bank platform employees (used by 24%), have been only modestly effective. By a decisive margin, the most popular and most effective distribution channel for Commercial Lines insurance is the commercial lending group. The bottom line: Banks are selling products by introducing traditional producer efforts to their business customers. Although banks might add a wrinkle or two, don't expect them to try to reinvent the Commercial Lines distribution process any time soon. THE INSURANCE CONTRIBUTION TO BANK VALUE IS INCREASING. The question that hovers over all bank-insurance activity is, How much value does it create for bank shareholders? ... others expected. The truth, according to the American Bankers Insurance Association (ABIA), lies somewhere in between. In September of 2002, the ABIA released its fifth annual Study of Leading Banks in Insurance, based on an analysis of the insurance distribution strategies and results reported by 447 U.S. banks. Collectively these banks represent all 50 states and nearly half of the aggregate assets of all FDIC-insured institutions. The survey portrays a bank-insurance industry that's shaking off some early sluggishness and beginning to find its focus. Here are some of the key trends from the survey: BANK-PRODUCED PREMIUM GROWTH IS INCREASING. In the late-1990s, conventional wisdom held that premiums produced by banks would grow at 30% or more per year into the foreseeable future. In fact, aggregate bank-insurance premiums have increased at a compound ...

...s that require visiting a bank or lending institution in person, online loans ...

...engths. The future is not about blending the agency and bank cultures or all...

...Lines insurance is the commercial lending group. The bottom line: Banks are se...

... . What type of proactive measures should independent agencies consider? Establish a partnership with a bank? Allow the agency to be acquired or merged with a bank? Perhaps if we can't beat them, we might want to consider joining them-but not join in the traditional sense of the word. GETTING SOME OF THE FINANCIAL SERVICES PIE While serving on the board of directors of Traders Financial Corp., a lending institution with international correspondent connections, I learned about The American Dream (TAD) . This product was being previewed by a major Life insurer that didn't have a direct connection with a lending institution. During a discussion on how the Life company planned to train its agents and market TAD, I recognized what a valuable product TAD would be for independent agencies. For an agent, TAD is a ... done so thus far. In all likelihood, unless independent agencies take some accelerated proactive marketing measures of their own, that statistic will begin to change in favor of the megabanks. Instead of considering the Barnett Bank decision a setback, let's celebrate the fact that the decision actually leveled the playing field between independent insurance agencies and banks. Now, as a result of recent mergers and acquisitions of banking institutions by insurance companies, many agencies have access to traditional banking products. But not all agencies represent an insurance megacompany with banking products in their portfolio. Considering the agency profile required for an appointment with a megacompany, many agencies will never obtain access to those banking products. It's those agencies, the ones with clients that depend on them for advice, who know that the new playing field isn't ...