The number of credit unions with investment service programsincreased in 2013.

According to the KSA 2013/2014 Annual Checkup from theCharlotte, N.C.-based research firm Kehrer Saltzman & Associates, of the estimated 860 creditunions and 1,809 commercial banks that offer investment services,the number of banks in the business fell by almost 3% compared to anearly 3% increase of credit unions that offer such programs.

Jon Gabriel, a senior associate at KSA and an author of theAnnual Checkup, pointed out that the number of banks sellinginvestments fell for the fourth time in the last five years.However, banks still dominate market share.

“Altogether 26.2% of all banks offer investment services, downslightly from 2012,” Gabriel said. “But those banks account for 78%of all consumer deposits in banks. The larger the bank themore likely it is to sell investments.”

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The number of financial advisers in financial institutions affiliated withthird-party broker-dealers increased in 2013, reversing a long-termdecline, said Tim Kehrer, who directs KSA's Annual TPM Survey, anannual study of the largest third-party broker-dealers.

Kehrer said 6,160 financial advisers affiliated with the largestthird-party broker-dealers worked in banks and credit unions lastyear, up from 6,017 the previous year.

The largest banks tend to have their own broker-dealer, andemploy advisers that produce more revenue, on average, said KennethKehrer, a principal at KSA.

“Part of the reason for this productivity differential is thatthe largest banks have been more successful in transitioning tofee-based advisory business,” Kenneth Kehrer explained. “Inaddition, they have been more aggressive in offering incentives toattract top producing advisers.”

Advisers in banks with their own broker-dealer are leading theway, with gross revenue per adviser of $435,360, up 33% over 2012,according to KSA. Advisers in banks that work with third-partybroker-dealers also enjoyed a banner year, increasing averageproductivity 29% to $297,028.

The Annual Checkup was sponsored by investment firm INVEST Financial Corp., in Tampa, Fla.