Fiserv Inc. and Bankers Systems Inc. are expanding the individual retirement account administration services they provide to include brokerage.
The companies, which last year began offering a service called IRAdvantage, are now targeting banks and other financial institutions that want to offer equity investments in IRAs, but lack their own broker-dealer subsidiaries or alliances with third-party marketing firms, said John Newman, the IRAdvantage product manager.
Through IRAdvantage, Affinity Group Inc., a Denver subsidiary of Fiserv, and Bankers Systems, St. Cloud, Minn., offer record keeping, consulting, and service support on self-directed individual retirement accounts. Some 275 financial institutions use the program, which had about $500 million of assets under administration at yearend.
Most of those clients have their own brokerages. But many new prospects do not, said Mr. Newman, who works for Affinity Group.
Participating institutions without their own brokerage can now refer IRA customers to Fiserv Investor Services Inc., Houston, a retail brokerage. Mr. Newman said the introduction of Roth IRAs is increasing demand for equities in IRAs.