To better serve its wealthy clientele, Harris Bankcorp is planning to put trust executives into all 26 of its community banks around the Chicago area.
Previously, customers of 20 of Harris' affiliated community banks had to go to the bank's downtown Chicago office to see a trust executive. Now, Harris wants to be able to serve all its clients' needs under one roof.
"If they had a trust relationship, it was done downtown, and they'd ask, 'Why can't I do all this locally?'" said William E. Thonn, a Harris senior vice president.
Harris, which is a subsidiary of the Bank of Montreal, first began experimenting with localizing its trust business last year. Under a pilot program at one community bank, trust officers were brought in from downtown to work with clients on location.
The bank is now expanding that program and plans to have trust officers in all 26 of its community banks within two years.
Private bankers strive to work with clients at various stages of their lives, from saving and borrowing to investing and trust management, Mr. Thonn said. "If you're providing all those services locally, it's easier to make that transition more likely," he explained.
That is not lost on Harris' Chicago-based competitors, including LaSalle National Bank and Northern Trust Co., which already offer locally based trust services to their clients in the suburbs.
"We're flattered" that Harris "followed the Northern model," said Lloyd Wennlund, a senior vice president at Northern Trust. "Clients with significant assets expect a high level of service.
"That expectation is diminished when you send them elsewhere," he added.
Mr. Wennlund acknowledged that Harris has been expanding more rapidly in the Illinois market than Northern has. While Northern has 10 offices outside Chicago, Harris' 26 banks have 140 offices throughout Illinois.
"It's critical that you have a delivery mechanism that meets clients' needs," Harris' Mr. Thonn said. "Too many people are trying to differentiate themselves with products."
David Ross Palmer, a consultant who has worked with Harris on trust and private banking sales issues, agreed. "It's a major move to take advantage of Harris' existing client base," he said. "Most banks are not doing anywhere near where they ought to be to serve existing clients."
