Sales vs. suitability: striking the balance with investment products

Investment product retailing has become a top priority for banks looking to diversify their revenue sources and tap new growth opportunities. However, some financial institutions are endangering their success in this area by focusing too much on short-term gains. Their sales recommendations and disclosures are increasingly being questioned. Banks must try to bolster their profitability and improve their ability to meet their customers expanding financial services requirements in a manner that does not compromise their reputation for trustworthiness. To achieve this, banks must ensure that investment products are suited to customers, that investment product sales operation is integrated into a broader retail strategy, and that sales jobs and incentives are structured to motivate bank retail personnel in a positive manner.