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Banker's Choice-Uses Outside Broker/Dealer
Forty community banks in Texas have joined together in a program called Banker's Choice. This program, under the direction of Christopher Williston, President and CEO of the Independent Bankers Association of Texas, enables each bank to offer their customers investment products, such as annuities and mutual funds.
The Banker's Choice program uses the services of a broker-dealer who provides training and helps each financial institution choose which investment products it wishes to service. The broker-dealer, MMAR Group, only deals with institutional customers. It does not cater to retail business.
The average size of the program's member banks is $45 million in assets, with 19 employees. The largest has $1.3 billion in assets, and the smallest $10 million.
Some of the bank members are setting up a single investment desk, while others are creating full-scale investment centers with bank employees becoming brokers and getting their license, as is required in Texas.
By dealing through this cooperative effort, the Banker's Choice group is able to get the same pricing as the "big" banks.
Also involved in this effort are fifteen community banks in Florida cooperating in a turnkey program with the Texas Bankers Choice group. Getting as many financial institutions involved as possible drives the price down for all.
If you are interested in starting a similar cooperative group, you can get further information on "How To" from Christopher Williston. BANKERS' HOTLINE spoke to Mr. Williston at some length, and he indicated that he would be glad to talk to others about this project as it would be a shame for other groups to have to "reinvent the wheel" to start a program like Bankers Choice. Also, when asked if others could join the Banker's Choice Group, he responded with, "Absolutely-the more the merrier!"
Christopher Williston can be reached at (512) 474-6889.
Copyright © 1993 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 4, No. 2, 7/93
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