December 2, 2023

It’s one of the biggest banks that many wealthy Americans or soon-to-be wealthy people have never heard of. Things could soon change for RBC.

hired a A $1 Billion Advisory Team from First Republic Last week, the U.S. arm of the bank’s RBC Wealth Management unit was poised to pitch itself to advisors and clients as a stable, Canada-friendly and highly competitive place to work.

“We’re seeing financial advisors and clients becoming more concerned than ever about the safety and security of their assets,” Tom Sagissor, president The person in charge of RBC wealth management company in the United States said in an interview. “When you look at RBC, I mean, obviously (we’re) one of the strongest, best-capitalized banks in the world with a high-quality liquid balance sheet.”

The moment comes as RBC ramps up one of its biggest branding campaigns in recent memory as it Partnering with Major League Soccer Signed a four-year contract ahead of the 2026 World Cup in North America. RBC Wealth also partners with Apple, MLS’ exclusive Broadcast partners, who reach millions of sports fans each year, can help it amplify its impact on the diverse faces of America’s next generation of wealth.

Sean Kellenberger, senior vice president and head of U.S. brand, marketing and digital solutions, said: “In the U.S., we haven’t really told our story, we think it’s a good story, and now it’s time for us to tell it. ’” RBC Wealth Management said in an interview.

Andy Tasnady, an industry compensation consultant who has advised RBC Wealth Management on compensation structures over the past few years, said the firm’s It appears to be less well known among Americans.

“They’re big and credible, but they’re kind of low key in terms of brand awareness. They don’t have the same marketing budget as Merrill Lynch,” he said.

With these new contracts, RBC is telling advisors and clients it is ready to close.

“Reverse lookup” grows from a sleeping giant
The company’s parent company, RBC, is currently tenth largest bank In the world, there is a market value of About US$140 billion.

Tom Sagissor, President of RBC Wealth Management

red blood cells

globally, in all its Wealth management unit RBC Has 6,199 Financial Advisors, Based on Q1 Earnings Reportbut it has a smaller presence in the U.S. than larger banks such as Bank of America, whose Merrill Lynch and private banking divisions and other lines of business 19,243 consultants reported in the first quarter.

“RBC Wealth Management has $510 billion in total client assets and more than 2,100 financial advisors at 187 locations in 42 states,” the firm said in an emailed news release announcing First Republic’s hiring last week. That refers to the company’s U.S. wealth footprint, a company spokesman said in an email Thursday.

Those numbers could rise sharply next month when the bank reports earnings again.

“The reverse investigation is very (intense), probably more than ever,” Sagissor said, meaning consultants or their recruiting representatives started negotiating with RBC about moving there, rather than the usual other way.

A spokesman confirmed in an email Thursday that First Republic employees have Uninvitedlike many similar employees at Morgan Stanley recent week. The incoming consultants were clearly eager to join RBC — when Financial Planning initially reported their move, the team wasn’t even ready to offer professional headshots.

Typically, experienced consultants will take several months even Year Plan your moves and do your due diligence – it shows that some of them, especially those in first republic.

Sagissor said the bank’s long history, “reputation for integrity” and expectations of client stability, including capital stability, were at the heart of that appeal. “RBC customers have $5 million in FDIC insurance in our cash bank deposit program,” he said, referring to the standard FDIC protection requirement of $250,000 per investor and per account. “I don’t know how many companies on the street can make an effort like this.”

In addition, Sagissor argues, RBC offers consultants and employees a “warm, welcoming” environment with a promise of “autonomy” — conditions they might not get at a wire plant. “We’re not going to put pressure on quotas or sales requirements. We’ve never done that, and we’re not going to do that,” Sagissor said.

Prior to this, RBC had shown steady growth in the U.S. wealth market, Sagissor said.

“Since 2017, our annual revenue has grown by 10 percent,” he said. “This is primarily due to improvements in advisor productivity driven primarily by a specific focus on (a) deepening client relationships…by leveraging products, capabilities and platforms to enhance the financial advisor planning experience.”

The average annual turnover of financial advisors in Sagissor’s business today is close to $1.4 million, and since 2017 they have recruited more than 330 advisors, he said. Together, these new advisers manage about $100 billion in assets.

While there are no specific targets for how many advisors the company plans to bring in or how many assets it plans to add each year, Sagissor said it’s fair to assume it plans to hit at least those numbers over the next five years — growth either by identifying key markets that seem to be a good fit for the brand, or By hiring ‘community-focused’, customer-focused advisors in these markets and building the market around them.

Sagissor said the firm is also looking for diverse young consultants who can help attract the next generation of clients — especially women and minorities.

Another key talent strategy involves “recruiting our own talent,” Sagissor said.To keep existing consultants satisfied, the company Invest in solid income and technology to facilitate high retention rates.

RBC Wealth’s U.S. division also offers a two-year trainee program for individuals looking to become advisors, called the Associate Financial Advisor Program, which encourages client associates (the advisor’s support staff) to consider joining if they want to move up the firm as an advisor .

“Since 2021, 29 percent of AFA learners have joined the program from internal account assistants and other customer-facing support roles,” a company spokesperson said in an email.

Among consultants, RBC is a well-respected entity. “They’re considered very stable, very safe,” Jodie Papike, president of industry recruiting firm Cross-Search, said of RBC Wealth’s reputation in the industry: “They’re considered very stable, very safe. They’re high profile, everybody’s heard of them. ”

Tasnady called the company’s compensation “very competitive among non-wire companies.”

“Their growth is based on hiring consultants Transfer from the four largest firms, wirehouse firmshistorically,” added Tasnadi, who was not surprised by the appeal of First Republic advisers — they usually came from the Intelligence Service.

Meanwhile, Papike said RBC has “the level of service and sophistication clients expect” in terms of offerings in complex areas such as technology platforms and estate planning.

Recent success in recruiting First Republic consultants means that many more will soon be on board, adding to earlier records.

“Typically for companies, once they gain momentum, it’s almost like a snowball of other teams coming in,” Papik said, adding that hearing about peers turning to firms like RBC could add traction and interest. The aura of legitimacy.

Papik said last month’s banking crisis had led to liquidity scares at regional banks, three banks The closure and the merger of Credit Suisse into Swiss rival UBS would help RBC entice advisers to consider pulling from an institution deemed less stable.

“What large teams with significant assets and high-net-worth clients are looking at when considering options is the timing of their orientation to clients,” Papik said. “Will that client want to go with them? That’s one of the most important factors.”

Organic Growth Through Football

Sean Kellenberger, senior vice president and head of U.S. brand, marketing and digital solutions, RBC Wealth Management.

red blood cells

In terms of attracting clients, the MLS partnership, announced earlier in February this year, involves TV commercials for approximately 600 games, digital and streaming ads, participation in special events such as All-Star Week and the MLS Cup, and partnerships with MLS on the community front. Cooperative service projects such as Soccer for Success to support At-Risk Youth and Hometown Heroes, which will celebrate local citizens.

The 26 MLS franchises in the US match RBC’s existing regional presence in these regions.

Soccer is the fastest-growing sport in North America, and the majority of MLS fans are millennials, Kellenberger said.

Match tickets will also be part of the sale. “We’ll be entertaining clients, employees and financial advisors, and trying to engage fans and introduce them to RBC Wealth Management,” Kellenberger said. He added that MLS has a “really passionate fan base that is more diverse than our typical clientele and has a strong focus on community.”

Sagissor added: “When you look at this diverse fan base, 37% of the fan base speak Spanish. 47% are women. The average age is under 40. They are educated, passionate, and affluent.”

In the company’s marketing campaign, Kellenberger said RBC will communicate the holistic financial planning the company offers in a turbulent economy — a simple message that, like a good first date, can open the door to potential future relationships, without making an immediate commitment.

“On a first date, you’re talking about yourself. You’re getting to know the other person. You wait until you’re a little further along, and then you have some deeper conversations,” he said.

“Wealth planning, financial advice is what I would say consider buying. So it takes some time. It’s a trust-driven relationship.”

Diana Cabrices, founder of Diana Cabrices Consulting and part of the lead evangelist for B2B wealth tech brands.

Diana manuscript

Diana Cabrices, Marketing Consultant for WealthTech Companies, Consultant at Diana Cabrices Consulting denverColorado, said the focus on basic financial planning and literacy was a smart move by the company.

“Financial companies see sports sponsorship as a way to reach a fairly broad audience and associate themselves with the excitement and passion of sport. There are data showing that economic decisions are largely based on emotion,” Cabris said in an interview.

She added that information on financial literacy may be particularly attractive to immigrant families, “who are historically financially illiterate communities.”

To maximize RBC’s appeal to new audiences, the campaign also wanted to focus on meeting audiences in the right medium and language, Cabrices said. This means increasing engagement through other avenues such as social media, if the company is not already doing so.

“I even think some ads could be made in Spanish. We know Hispanic and Latino populations tend to have higher ratings.”