(November 3 – 12:15 ET) – U.S. brokers are making strong productivity gains, says the Securities Industry Association in a recent industry report. Registered rep production has grown at an average annual rate of 5.8% over the past 10 years, says the SIA. It has accelerated to 10% over the past five.
The SIA is suggesting that technological improvements in contact management systems have boosted productivity. The use of fee-based products has also increased, now accounting for 18.2% of gross production, up from 13% in 1997.
This trend is following from growing online business and the prospect of increased cross-selling due to increased “financial mergers, providing the investor with many types of products.”
Reps themselves haven’t necessarily benefited from increased productivity. Earnings have increased, but not as fast as productivity, with grids sliding down to 37.3% in 1999 from an average 42% in 1994.
-IE Staff