Deposits, Private Banking & Recruiting


Like many before it, 2022 was an interesting year for financial institutions.  We would like to focus your attention on three areas we believe had a big impact on wealth management inside the bank and credit union channel…


Deposits:  Big banks took huge hits to their wealth management client deposit balances.

  • Bank of America – Down 17%
  • Wells Fargo – Down 28%
  • JP Morgan – Down 17%

Interestingly, we have not seen large drops in wealth management client deposits with the super regionals.  There were drops, but most were below 10%.  And in the community banks and credit unions that we asked, the collective drop was 4.1%.  There were several that reported increases in wealth management deposit growth, by the way.

It’s not unusual for high-net-worth clients to move their money around when the Fed increases rates to the levels we are seeing.  But it is unusual to see 17% to 28% drops like the big banks are experiencing.

We continue to push the idea that wealth clients and wealth managers / private bankers that work for the big banks are leaving.  They are looking for a better experience with institutions that align with their values.  Community banks and credit unions with robust wealth management offerings are good fits for these folks.


Private Banking:  After reading many year-end financial reports, one thing sticks out.  Private Banking had one of its best years ever in 2022.

As most of you know, Compass is a huge proponent of the “Private Bank” wealth model.  Financials from 2022 (and earlier) are evidence that this model is here to stay and a model every community bank should consider adopting.  Compass has developed a blueprint for success specific to the private bank wealth model.  Next time we are together, please ask about it.


Recruiting:  Financial advisor and private banker recruiting was down in 2022.  Advisor recruiting was down nearly 6% and private banking 2%.

Still, nearly 16,000 financial advisors moved in 2022.  Firms that took the biggest losses were Merrill Lynch, Wells Fargo, and Ed Jones.  The three firms with the biggest gains were LPL, Fidelity, and Ameriprise.


Because community banks and credit unions are lumped into the super regionals and big banks, the bank channel showed a net loss of 249 advisors in 2022.  That figure is inaccurate and does not reflect the growth of OUR channel; COMMUNITY BANKING & CREDIT UNIONS.  Credit unions, with few exceptions, had a great recruiting year in 2022.  Community banks had a better than average recruiting year in 2022.

If you remove Wells Fargo and Bank of America’s numbers, the bank and credit union channel had a great year of recruiting advisors in 2022.  Collectively, those two banks lost nearly 1,000 NET.  An incredibly large number considering how many advisors both firms hired in 2022.  There is no way of knowing the exact percentages, but we believe a good percentage of those advisors went to community banks and credit unions.


To learn more about Compass Consulting’s services, visit our website www.compassconsulting.com or call 760-477-1299.

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