ABSTRACT
Major brokerage firms and insurance companies are encroaching on traditional bank territory, competing with banking institutions for the hearts and minds of retail customers. Along with financial industry deregulation has come the opportunity for banks and savings and loans to expand into securities brokerage. The branch office where the customer usually banks is the best location; the familiar surroundings put the customer at ease, reducing buying resistance. This is especially true if a large amount of money, or the customer’s life savings, or both are involved. The products INVEST sells most are high grade bond mutual funds and unit trusts. The customer prefers them because of safety and high or tax-free income. Soft real estate markets and tax reform are the principal reasons, but also the brokers seem reluctant to show partnerships to the customer. Branch and regional people have considerable autonomy and cannot, for example, be compelled to refer customers.
