TAMPA, Fla.-Putting a new spin on the old concept of wealth-management services, Members Trust Co. has introduced the Private Member Advisor, a program to help CUs build deeper relationships with more affluent members, including many who recently joined after leaving their bank.
Similar to a private banker, the Private Member Advisor is a concierge at the credit union who delivers services such as trust, insurance, and investments, in addition to helping members with loans, deposits, and any other CU services they need. Sheldon Reynolds, VP, trust and investments at Members Trust, expects CUs to use PMAs to target members with relationships in excess of $100,000.
"The Private Member Advisor is the quarterback, the one person at the credit union that brings together all of the services to meet the needs of those with more complex financial situations," Reynolds said. "For example, some people with family issues might need trust services. They would provide those services through Members Trust, as well as wealth management. We would also help the PMA establish a local network of attorneys and CPAs to assist high-net-worth members, and do background checks on attorneys for them."
Reynolds explained that MTC works behind the scenes, "like a third-party broker," while the PMA is the face to the member. "But we are there to provide support at all times." Including up-front training for the credit union's new hire, or a staffer brought over from another area. "We help the PMA develop the overall comprehensive plan for members."
According to Reynolds, providing a PMA elevates the credit union in the minds of members and within the community. "It enhances their image as a primary financial institution and boosts cross sales."
Cost for the PMA program "varies," Reynolds said, based on the size of the credit union and the level of services provided, choosing not to disclose estimates. Reynolds shared that credit unions can pay a fee until assets under management reach a certain point. "We do that to cover our costs until the book of business is pulling its own weight. Credit unions, too, have the option, subject to our board approval, to become a shareholder in Members Trust. In that case we waive fees."
Members Trust Company is a CUSO owned by 43 credit unions and CUNA Mutual Group.
