First Security Bank Expands Trust and Wealth Management Division in Northwest Arkansas
First Security Bank, based in Northwest Arkansas, is expanding its trust and wealth management division to meet the growing demand in the market. The bank recently hired Sonya Hall, an attorney with 24 years of experience, as its 11th trust employee. Hall brings valuable expertise to the NWA market after working for First National Bank of Fort Smith.
The trust and wealth management division of First Security Bank plays a crucial role in managing complex financial transactions, especially in light of market volatility, tax law changes, and regulatory updates. With over $3 billion in assets under management, the division focuses on customizing their advice to each individual or company situation while minimizing risk.
The Northwest Arkansas market is highly competitive, and this trend is expected to continue due to the presence of rival firms and changing demographics. The ongoing transfer of wealth from baby boomers to the next generation creates additional challenges and opportunities for financial institutions. In addition to traditional banks and brokerage houses, accountants and insurance companies have entered the field of investment advising, intensifying competition.
Bank trust departments typically offer trust administration and investment management services. Trust administration involves distributing funds and trust assets according to the terms of the trust, while investment management focuses on strategically investing and divesting assets as outlined in the trust documents.
Trust services have become increasingly essential in the United States, as they allow for efficient estate settlement, asset management, and the realization of a person’s wishes. The bank trust industry is valued at $221.4 billion, with more than 4 million businesses managing trusts and employing approximately 27,000 people.
The global wealth management sector is experiencing remarkable growth, currently managing over $1.25 trillion in funds. Projections from Allied Market Research indicate that this market is expected to reach $3.43 trillion by 2030. First Security Bank is well-positioned to capitalize on this growth with its team of trust and wealth management professionals, including attorneys and certified public accountants.
Bank trust departments can offer a wide range of services to older clients, particularly those whose children are busy with their own families. These services include bill payment, handling real estate taxes, coordinating property maintenance, and providing regular updates to clients’ children via video conferencing tools like Zoom.
The industry is also adapting to advances in technology, with artificial intelligence (AI) and chatbots gaining prominence. Smaller firms that excel in leveraging technology may become attractive targets for acquisition as they can achieve efficiencies and economies of scale. Furthermore, more banks and community banks are venturing into the trust and wealth management space, recognizing the value of offering services beyond traditional banking.
However, the impact of technology on the younger generation’s banking preferences remains uncertain. Younger individuals often prefer mobile banking and may not prioritize in-person interactions like previous generations. This shift poses questions about how relationship-oriented businesses like the trust and wealth management division can adapt to evolving customer preferences.
With its expanding trust and wealth management division, First Security Bank aims to build and protect the wealth of its customers, establishing deep relationships based on trust across Arkansas. As the market continues to grow and evolve, the bank remains committed to delivering tailored solutions and maintaining its reputation for exceptional service.
In conclusion, First Security Bank’s expansion of its trust and wealth management division in Northwest Arkansas reflects the increasing demand for these services in a competitive market. With experienced professionals and a focus on customization and risk management, the bank is poised to thrive amidst the changing landscape of wealth management.