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The mutual fund industry has been growing at a rate
of nearly 20% per year since 1970 versus the banking industry growth
of a modest 7.6%. One point remains clear, community banks will
continue to be challenged by fierce competition. That competition
requires community banks to develop products and services banking
customers want and need.
Bankers Financial Services, LLC has developed a revolutionary
program called the Dow Jones Indexed CD program which allows community
banks to private label and issue
CDs with interest based upon the performance of the Dow Jones Industrial
Average. Deposits remain at the issuing bank
providing a core deposit funding source or brokered deposit
funding source.
We offer a turnkey program or can customize our service
to compliment the bank’s product menu for
current and prospective customers. |
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| Banks Win |
| The Dow Jones Indexed CD program is designed to help
community banks differentiate themselves and compete
directly for money flowing into equity indexed annuities,
indexed mutual funds and other index products. |
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| Customers Win |
| Indexed CDs are designed for today’s investor
with no downside risk through its
principal protection feature and FDIC insurance.
Indexed CDs can give customers an excellent rate of return on their
deposit without sacrificing safety and without hidden fees. |
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| Here is how
your Bank will make money with Indexed CDs: |
- Attracting younger depositors and cross-selling other
services
- Gaining more customers assets
- Low cost long term funding source
- Program cannot be duplicated by your competition
- No more CD Specials
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| The numbers: |
- Costs are less than rates charged from wholesale
funding sources
- Extends Deposit Maturities
- The 5 Yr. historical average interest return of DJIA Indexed CD since 1950 is a 7.0 - 8.0% Return
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| Who can sell Indexed CDs? |
- Our core program is designed to be sold through the bank's New Accounts
Personnel
- A second program is designed to be sold through Registered
Reps
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| What Bankers Financial
Services adds? |
- Regulatory Review & Support
- Advertising/Marketing Templates
- Training Seminars
- Accounting & Call Report Guidance
- Customer Confirmations & 1099 reports
- Flexibilty to meet custom requirements
- Product Design
- Policy Assistance
- Website Administration and Technical Support
- National Distribution
- Commitment to Service
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| Who are the Target Customers? |
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| Individual
Accounts |
Commercial Accounts |
- qualified retirement plans
- college educational savings accounts
- trust accounts
- caregivers
- seniors
- other individual accounts
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- foundations, endowments, non-profits
- public sectors
- corporate
- small businesses
- bank investment portfolios
- other commercial accounts
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While bankers might think that existing customers may be the primary
target market for this product, the biggest market is customers that
banks have already lost, active investors in the equity markets, or
those doing business with another bank who does not offer Indexed CDs. |
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| How can the ICD product be sold? |
The program is designed to avoid complex investment
descriptions. The sale is simple, direct and easy by asking, “How
would you like the potential of stock market returns, no downside
risk (with your principal protected), and
FDIC insurance? ”
- or - "Does your current investment provide:
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- Principal Guarantee?
- FDIC Insurance?
- No Sales or Management Fee?
- Only Upside Return Potential?
- Peace of Mind?"
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| Compelling Reasons for Banks to Sign
Up |
- To lower cost of core deposit funding
- To offer a deposit program that your competition cannot duplicate
- To extend deposit maturities
- To attract depositors without having to meet inflated fixed-rate
CD specials
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For complete details regarding the Indexed CD program,
please contact:
Lisa M. Smith, VP-Product
Manager or Mike Sherzan, President &
CEO at 1-800-262-4422. |
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