SEI Investments is setting up shop in the bank channel. The Philadelphia area firm already vends its trust technology to banks but ironically has not aggressively targeted banks with its products in the past. Robert Prucnal heads the new group.

Prucnal currently oversees fifteen people, but his group is dedicated to the development of products. SEI reaches the bank channel through thirty to forty sales people. Prucnal is also looking to add three or four "product experts," who help develop customized mutual fund products for individual banks.

SEI has been marketing its products to banks and has accrued $5 billion of bank investment funds under its management in private-label products. The designation of the new group, however, signifies a commitment to the whole gamut of distribution to banks. With 300 banks already among SEI's clientele, the firm will have both access and brand with many banks.

SEI formed the new group to help banks respond to competition. As more providers of financial services have appeared, banks have seen assets flow from their grasp.

"Through research, we know that more and more institutions are developing a wealth channel service within their organization," explained Prucnal. "We know that mutual funds continue to be an extraordinary opportunity. We know that financial institutions are lower on the list than others for options for fulfilling [asset management] needs. From a partnership standpoint, we can help banks stop the migration of assets out of the institution and keep the assets under their own umbrella."

Prucnal has been the senior vice president and head of marketing for SEI's plan sponsor investment services. Since 1995, that group's assets under management have increased from $19 billion to $79 billion. He is now senior vice president heading the asset management team within the bank channel division.

What kind of numbers does he see for the bank channel as this market develops?

"The numbers at this stage are less important than our ability to achieve momentum and success in the industry, to show that we can take the history of our company and deliver that discipline into the bank channel," answered Prucnal. "From there, we think the numbers will become astronomical."

 

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