Trust and estate business was once a major part of the banking industry. Over the years, brokers, investment advisers and lawyers, all wanting part of the lucrative market, have eroded this business. One of the reasons for the decline has been in the poor handling of sales. In the past, banks generated new business by relying heavily on personal contacts. However, with increasing competition business cannot be handled that way any more. Trend statistics within ﬁnancial services over the last few decades highlight this:
& the number of ﬁrms managing money for individuals has increased more than six-fold
& employment and the number of ﬁrms managing money and registered with the Securities and Exchange Commission have more than tripled
& mutual funds have grown more than 10-fold
& banks, insurance companies and trust companies account for less than 30 per cent market share of investment accounts, down from 70 per cent in 1969
& nearly every major brokerage house is now in the trust business.
According to William F. Ottinger, senior vice president marketing at Boatmen’s Trust Company, St Louis, USA, success in the trusts markets isn’t a mystery, but the sum of many small things done well. To compete in this market requires delivering very high quality, and trust service levels thrive externally when they are successfully promoted internally. ‘It sounds simple enough’ says Ottinger. ‘But actually accomplishing it is another story. At Boatmen’s we’re always looking internally at ways we