Given my perspective, the answer is a resounding, YES!  That said, there are a simple caveat to that answer. 


After 16 to 20 years of school, university and certification courses and completing seemingly endless professional education requirements the last thing PWM professionals desire is a trip to another classroom.  Unless . . .


This time in the classroom directly impacts production results . . . I mean measurable increases in Credit Opportunity Identification (OID).  Let's define OID. 


Opportunity Identification = Recognition by any member of the Private Wealth team that the client's desired financial end result could be enhanced through the use of a Strategic Credit facility. 

 


Given the collective perspective and training backgrounds of the majority of the PWM client team members, credit opportunity education will have an dramatic and immediate impact on the opportunities the team encounters. 


In most bank PWM environments credit professionals occupy only a "part time" position with the PWM team.  They usually partner with multiple PWM client teams and often span large regional geographies.  Inherent in this structure is a tendency to be reactive to client inquires about the use of credit rather that proactive in offering Strategic Credit as part of an alternative solution to many client financial activities.  In this model many opportunities are left undiscovered.  Why? 


  • Typically members of the Wealth Advisory team (planners, trust advisors, investment advisors, insurance advisors, brokers) simply aren't exposed to credit opportunity discovery concepts. 


During my long tenure leading a team of Credit Advisors (that partnered with Family Office Wealth Advisors) I discovered that, over time, only about thirty percent (30%) of our total credit facility production and outstandings came from "client identified" uses of credit.  A good seventy percent (70%) came as part of client financial solutions when the Wealth Advisor and Credit Advisor partnership took a use of credit "idea" to the client. 


The opportunities discovered that gave rise to the these alternative financial solutions (that include the use of Strategic Credit) were the direct result of the OID approach we initiated shortly after the team was formed. 


My Credit Advisory team gave the Family Office Wealth Advisors' time in the classroom.  The direct and measurable result of the time spent in the classroom was significantly increased Credit Revenue from every team in the company. 


(The "classroom" may take many forms; from conference room wealth team meetings to webinars or simple conference calls supported by PowerPoint presentations) 


We found that while the increased OID certainly varies among Wealth Advisors, the time in the "classroom" resulted in extraordinarily sharp increases for all during the first eighteen (18) months of exposure to these Strategic Credit concepts.  While OID can continue to increase beyond this initial time period (albeit at a slower pace), to do so, Wealth Advisors require continued classroom reinforcement of the original concepts introduced and exposure to new Strategic Credit uses that evolve over time (illustrated in the graph above) as tax, trust and entity laws change.


I've published several articles previously about particular Strategic Credit uses and why they appeal to the High Net Worth and Ultra High Net Worth Individuals.  But that appeal is only realized once its presented and presentation is completely incumbent on OID.

(You can find all the articles through my profile on LinkedIn.com or on my blog at strategiccreditsolutions.com)

You "likes" and "comments" and "shares" are greatly appreciated.


I can present these concepts to your PWM Advisors (and follow them up) in a variety of effective ways. Please don't hesitate calling to discuss the best method for your institution.


Mark S. Johnson

mark.johnson@strategiccreditsolutions.com

Strategic Credit Solutions
404.909.5167
On twitter @CreditStrategic