The C-Suite INTERVIEW
Laurentian Bank aims to position advisors as one stop shops François Desjardins has a sky-high dream. The Laurentian Bank Financial Group CEO wants to help financial advisors become indispensable one stop shops for all their customers’ needs, providing financial and banking services alike.
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BY ALAIN THÉRIAULT AND SERGE THERRIEN | PHOTO BY RÉJEAN MELOCHE
This strategy will encourage advisors to think of rançois Desjardins’ lofty dream is for LauLaurentian Bank when they meet their next client, rentian Bank Financial Group to be not only Desjardins says. The bank also just enhanced the line the bank of choice for independent advisors, of traditional banking products offered by B2B Bank. but also to provide them with indispensable support. He wants each independent advisor to have Protecting advisors from large banks the best possible business relationship with each of This strategy has a dual advantage, Desjardins says. their clients. It grants advisors access to low cost products that help “Clients reach out to their advisors to buy insurance them consolidate their client relations, and in turn clibut also to get advice. We want to position ourselves ents will be less tempted to transfer their assets to a as the bank of independent advisors, he told Insurance large bank. Journal. Desjardins explains that banks have an advantage: This vision is long cherished, Desjardins says. He they sell both investment and banking products. Injoined Laurentian Bank in 1991. In 2004 he became dependent advisors are often limited to investment director of B2B Bank (then known as B2B Trust), the or insurance products. He is bank’s subsidiary for advisconvinced that advisors’ cliors. He was appointed CEO ents will not turn to the large of Laurentian Bank in 2015, a banks if they can obtain all position he holds today. their banking products from Laurentian Bank recently their advisor. launched a direct online ser“Many studies show that the vice offering, under its LBC With assets of $44.3 billion, more advisors forge strong Digital brand. Desjardins is Laurentian Bank Financial Group ties with their clients, and the counting on independent adis ranked seventh among the more products they have with visors’ ability to grow their large federally chartered banks. them, the more difficult it is business by referring customHowever, if you include the for a competitor to lure them ers to its online banking prodDesjardins Group, a provincially away. Advisors who forget ucts and services. “When a chartered bank, in the equation, that their clients are also the client goes to the site to open Laurentian Bank is bumped to eighth place in Canada. customers of a large bank will a chequing account, for exDesjardins, with assets of $313 eventually lose them.” ample, and were referred by billion, soars to fifth place, He adds that the large fian advisor, the advisor will behind BMO Financial Group nancial institutions acquired receive a commission,” he and CIBC. a powerful marketing and explains. cross-selling machine over The customer may then proSource: 2019 annual reports of banks cited the years and can now more cure other products without easily impinge on independent needing the advisor’s help. advisors’ turf. “The advisor will be compen“I’m hearing that when we ask advisors where their sated again, even if they did not mention any other clients went, it’s never to another advisor. It’s always product to their client because the client came to us to one of the big banks, which control about 85% of through their referral.” the clientele in Canada,” Desjardins underlines. If while doing data mining among its web clientele, the bank lands a new sale with a client who was No cross-selling brought in by an advisor, then that advisor will be François Desjardins is not only shielding advisors compensated. “If the client has a chequing account but from competition from large banks. He has pledged not a savings account, we can offer them one, and the not to compete with advisors. advisor will be compensated if the client goes ahead “There will be no cross-selling with clients that with it.”
7th or 8th?
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INSURANCE JOURNAL APRIL 2020