GIC Broker's Rates ... Nice! :-) | Page 2 | GIC discussions | Discussion forum

HermanH said

Why do you believe that brokers have a stable of clients, from which they can draw upon these larger amounts?  

Because my broker knows me after dealing with them for many years and they call when there is a better than advertised offer. Like with any well established working relationship, transactions are handled expeditiously.

These are sales people and as such keep client lists which they then scrutinize in order to create prospect lists they use to generate new business.

Some brokers have email lists to send out weekly rate lists along with Holiday greetings etc etc.

Stephen

The GIC brokers have a much bigger reach, both geographically and in terms of types of depositors.

COIN said
One would think the F.I. could do the same. Keep track of their customers' habits and cash resources without going through an intermediary.  

They could but they don't in the real world of credit union business models.

Consider the goal and functioning of a typical credit union, their orientation and their target market which are unlike the business model of a brokerage firm that sells gic products from a variety of FI's.

GIC brokers are sales agents, who may be compensated on sales volume or some other sales volume incentive remuneration.

I think the latter would have greater incentive to actively cultivate prospects and to sell more aggressively than would a typical credit union representative.

Stephen