The "New" Trust Industry
Practices, Implications and Opportunities for
Building Growth

A Multi-Sponsor, Four-Part Study of Evolving
Trust Services Business Models and Distribution Perspectives

The opportunity for trust services will grow rapidly over the next ten years. Demographic forces, personal needs of older, wealthier, longer-living consumers, and the changed regulatory context are all driving this growth and causing a rapidly changing competitive landscape.

Recognizing the opportunity, an increasing number of non-bank financial services companies have entered the trust arena. In response to this growing interest in the trust services opportunity, The Diversified Services Group, Inc. (DSG) conducted industry and market research in 1998 to examine strategies and business models that were being used by non-bank owned trust entities. This study consisted of a "mapping" of the non-bank trust services industry combined with in-depth interviews with senior executives at selected firms.

Now, DSG has completed a "new" trust study that updates the findings from the previous study, while expanding into two new areas: financial advisor/producer experiences and consumer perspectives.

The Project Overview:

The primary objective of this study is to help sponsor companies determine how best to compete in (or with) the non-bank trust services marketplace. The research provides both non-traditional and traditional trust company subscribers with an understanding of evolving trust business models and distribution perspectives based on:

• an industry overview,
• executive perspectives,
• financial advisor experiences, and
• consumer perspectives

The study consists of four different research modules that focus on each of four market perspectives:

• Industry module: a survey directed at non-traditional trust companies, and supplemented by significant industry information and call report data.
• Executive module: in-depth interviews with selected senior executives in the non-traditional trust services industry to supplement DSG’s ongoing executive interview base.
• Financial advisor module: interviews with experienced financial advisors who are currently active in trust services.
• Consumer module: a survey conducted with over 300 individuals who have assets in a trust which they have established.

With the input and participation of the sponsor companies, the study was implemented with the goal of gathering information and developing findings that develop or address the following areas:

• A "market map" of the non-traditional trust services industry, with key measures and indicators.
• Business models and strategies that yield the most success for non-traditional trust businesses.
• Examples of traditional trust businesses that are applying these new models.
• Developing trends in the non-bank trust services arena.
• Use of intermediaries to generate trust business.
• Consumer motivation to choose and use personal trust and investment management services and selection of a particular firm.
• Non-traditional trust company strengths and weaknesses vs. traditional trust businesses.

The final report includes a thorough review and assessment of the findings, with a focus on providing actionable distribution and marketing-oriented perspectives and ideas.

Project Deliverables:

The full report (Table of Contents attached) includes:

Section 1: Executive Summary & Implications
An overview of research findings from all modules of the study, along with a discussion of pertinent implications based on those findings.

Section 2: Company/Industry Examination

• Market Mapping: A broad profile of the non-traditional trust services industry based on a survey among 61 firms, and supplemented by other data sources.
• Executive Interviews: In-depth interviews with 15 trust firm executives of non traditional trust services firms.

Section 3: Financial Advisor Interviews
Detailed personal interviews conducted among more than 12 Financial Advisors, all of whom are experienced with trust services.

Section 4: Consumer Survey
A telephone survey conducted among more than 300 consumers who are age 50+ and who have assets in a trust that they have established.

Section 5:
A CD containing a copy of the full report along with supplemental data, including industry mapping data, a representative summary table of trust industry (traditional & nontraditional) fee schedules, and consumer survey data.

Discussion and Presentation:

DSG Principals will be glad to discuss the study and their findings informally with study sponsors via telephone. Should you desire, DSG will facilitate an in-depth client meeting including a formal presentation of results and discussion of implications and opportunities for your firm. There would be an additional charge for this program.

Please click here to submit a request.

Prospectus:

Please click here to submit a request.

Table of Contents:

Section 1: Executive Summary & Implications

Includes a top-line overview of research findings from all four modules of the study, combined with a listing of implications based on a combined analysis of all the findings.

I.
 
II.
 
III.
 
 
 
 
 
IV.
 
 
 
 
 
 
 

Background

Overview

Key Findings
Market Mapping
Executive Interviews
Financial Interviews
Consumer Survey

Implications
A. Defining the Business
B. The Trust Marketplace
C. The Role of Financial Advisors
D. Marketing Strategy & Marketing Support
E. Product & Service Considerations
F. Miscellaneous Implications
G. Conclusion

1
 
2
 
3
3
6
13
17
 
20
20
22
24
27
29
29
31

Section 2: Company/Industry Examination — Market Mapping

A broad profile of the non-traditional trust services industry based on a survey completed with 61 firms, and supplemented by other pertinent industry data sources.

I.
 
 
 
II.
 
III.
 
 
 
 
 
 
IV.
 
 
 
V.

Introduction
Context
Research Objectives

Research Design/Methodology

Market Mapping
A. Market Mapping — High Level Findings
B. Market Mapping Detailed Level Survey Findings
1. Analysis by Parent Company Core Business
2. Analysis by Depository Powers
C. Summary

Appendix
A. Market Mapping Survey Questionnaire
B. Representative List of Fee Schedules

Data Tables (available electronically only, on enclosed CD)
A. Market Mapping — Name Protected Survey Respondents
B. Market Mapping — Website Reference
C. Market Mapping — Regulatory Data

1
1
1
 
3
 
4
6
14
14
30
34
 
37

Section 2: Company/Industry Examination — Executive Interviews

In-depth, personal interviews with 15 specifically selected and targeted trust firm executives, covering a full spectrum of business models.

I.
 
 
 
II.
 
III.
 
 
 
IV.
 
 
 
 
 
 
 
 
 
V.
 
 

Introduction
Context
Research Objectives

Research Design/Methodology

Profile of Interview Participants
A. Rationale for the Selection
B. Profile of Interview Participants

Key Interview Findings
A. Defining the Business
B. Strategic Considerations
C. Starting a Trust Services Busines
D. Product and Service Decisions
E. Sales and Marketing Decisions
F. Operational Issues and System Decisions
G. Performance and Trends
H. Summary

Appendix
A. Appendix A; Interview Guide
B. Appendix B; Profit Center vs. Support Center

1
1
1
 
2
 
3
3
3
 
6
6
9
15
20
22
25
25
26
 
29

Section 3: Financial Advisor Interviews

Detailed personal interviews conducted with experienced Financial Advisors selected on the basis of their level of activity in the trust services marketplace.

I.
 
 
 
II.
 
III.
 
IV.
 
 
 
 
 
 
 
 
V.

Introduction
A. Context
B. Background
C. Research Objectives

Research Design/Methodology

Financial Advisor Respondent Profiles

Key Findings
A. The Trust Practice
B. Business Models
C. Trust Services Market: Situation & Trends
D. The Competitive Situation
E. Perspectives on the Primary Trust Provider
F. Enhancing the Appeal to Financial Advisors
G. Summary

Appendix
A. Interview Guide

1
1
1
2
 
3
 
4
 
5
5
7
11
14
15
16
16
 
19

Section 4: Consumer Study

A telephone survey conducted among more than 300 consumers who are age 50+ and who have assets in a trust that they have established. The survey consisted of 13 proprietary trust-related questions combined with a series of demographic questions.

I.
 
 
 
II.
 
III.
 
IV.
 
V.
 
 
 
 
 
 
 
 
 
VI.
 

Introduction
A. Context
B. Research Objectives

Research Design/Methodology

Notes on Analysis and Terminology

Respondent Profiles

Key Findings
A. Current Incidence of Trust Usage
B. Trust Assets
C. Trust Objectives
D. Deciding to Establish a Trust
E. Selecting Trust Providers
F. Customer Satisfaction/Switching Providers
G. Other Findings
H. Summary

Appendix
A. Questionnaire
B. Summary of Responses to Questionnaire
C. Data Tables

1
1
1
 
3
 
5
 
7
 
8
10
11
14
15
18
21
23
25
 
27

Pricing: Copies of the in depth Report covering the Study results are available for $6,600. Reduced pricing is available to RMEF member firms and BISA Members