As wealth-builders, these investors, many of whom are already bank customers, are excellent prospects for trust and asset management services. Baby boomers, as they approach and enter their retirement years, provide a ready market for trust services. Moreover, a massive shift of wealth from one generation to the next is taking place as baby boomers inherit appreciated assets from their parents. The elderly segment of the population is rapidly expanding, and an unprecedented number of people are living to be 85 years old and older. Many people in this group depend on fiduciaries to manage their wealth.
Trusts offer an excellent means of increasing a bank's fee income.
Recent banking history has sensitized bank executive management to the value of fee-based income. Accordingly, the trust revenue stream has taken on greater importance as asset-based results, specifically loan revenues, become less dependable. Properly managed trust departments can yield profits in five years or less. In short, compelling reasons exist for exploring the potential of the trust business. This Community BankTools guide will help you determine whether your bank should get into or strengthen its trust business.