CHAPEL HILL, N.C.–Driven by what it called a “slight improvement” in advisor productivity and another year of gains in financial advisor headcount, credit unions overcame the “challenges of an uncertain economy to post gains in revenue from their investment services businesses last year,” according to the 2022-2023 Kehrer Credit Union Survey.
The survey found credit unions were able to add advisors for the third consecutive year, a performance it said “stands out in an environment where banks and other wealth management firms struggle to attract and retain advisors.”
According to Kehrer Group, the research has “demonstrated that adding advisors and improving the performance of existing advisors are the twin engines of growth for the investment advice business in financial institutions.”
Market Constraints
The company stated advisor productivity was constrained last year by the market devaluation of assets.
“Nonetheless, credit union-based advisors added $11.3 million on average in new assets during the year, matching the record for asset acquisition set the previous year,” Kehrer Group said. “On the other hand, the growth of membership and member deposits in credit unions continues to outpace the growth in advisor headcount and advisor productivity. The thinner advisor coverage in credit union branches means that the financial advice needs of relatively fewer credit union members are being served, and credit unions are leaving significant revenue opportunities on the table.”
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