Pub. 1 2020 Issue 1

www.cbak.com 20 In Touch I f your organization is looking for ways to increase its deposit base, then offering IRAs could be the perfect solution. According to a recent study by the Investment Company Institute, in 2018 almost one-third (43 million) of U.S. households owned some type of IRA (including Traditional, Roth, SEP and SIMPLE IRAs). And by the end of March 2019, IRAs held an estimated $9.4 trillion in assets. Think about how much revenue your organization could generate from holding just a fraction of these assets. For example, offering IRAs may allow your organization to offer new fee-based services and transactions. Offering IRAs may also attract new clients that have additional needs, such as taking out loans or mortgages or opening a new credit card. If your organization isn’t yet offering IRAs, now’s the perfect time to start. Not sure where or how to begin? Read the following suggestions—and start the path toward increasing your IRA business. EDUCATE STAFF Education is everything. IRAs can be easy to offer, but harder to service well. If your staff understands how IRAs work, however, the path to IRA success is much smoother. Consider whether your associates need additional IRA training. If the answer is “yes,” think about the type of training that may benefit your associates the most. Fortunately, there are multiple training options, as described next. INTERNAL TRAINING If your organization has an experienced IRA specialist, consider enlisting that expert to train other associates. Having your own IRA specialist train and mentor other associates can help ensure that your organization’s internal procedures are followed and that IRS requirements are met. EXTERNAL TRAINING If your organization is new to IRAs, or if you have a large number of associates who need to improve their IRA knowledge, then you may want to give your associates more in-depth training. Perhaps you should consider sending some of your staff to external seminars—or have an instructor come to your organization for on-site training. Online self-paced learning courses can also be an easy, efficient way to train both new hires and more experienced staff. Online courses give associates control over the time, pace and place for their education. Online courses may also be more cost efficient, as your associates won’t incur travel expenses. SIMPLIFY THE ESTABLISHMENT PROCESS Some organizations mistakenly believe that establishing an IRA is a complicated, time-consuming process. But it’s not. There are ways to ensure that the establishment process runs smoothly. For example, if your organization chooses to process all IRA transactions internally, think about providing a procedural manual to associates. A procedural manual describes IRA procedures according to the IRS rules and regulations. In addition, a procedural manual can detail specific operations unique to your organization, including the forms used to validate transactions and to establish IRAs. And don’t let the idea of a “procedural manual” scare you away. This tool could start as a simple checklist that can grow into a more comprehensive manual, which can serve both as a reference for answering Offering IRAs Can be Easy and Profitable BY JEN BASSET