Community banks and credit unions with limited budgets have long turned to third-party broker dealer groups to provide investment services for their customers.
But PrimeVest Financial Services said there's been a pickup in the last 18 months in larger financial institutions outsourcing broker-dealer and advisory services to third parties as they search to grow fee income and grapple with heavier regulation and compliance issues.
The St. Cloud company said Thursday that it signed a long-term deal to provide advisory and investment solutions for Regions Financial Corp., the Birmingham, Ala.-based parent of Regions Bank. Regions Bank is the country's 18th-largest bank by assets, according to SNL Financial's second-quarter ranking.
PrimeVest, which employs 300 people and serves more than 500 banks around the country, said Regions is among the largest banks it has worked with.
"It's a big deal for us," said Sean Casey, PrimeVest executive vice president and director of business development. "Regions will eventually grow into probably our No. 1 client."
PrimeVest said it's on pace to top last year's revenue of $172.5 million. In June, it signed up with Zions Bancorporation in Salt Lake City, which will offer annuities and life insurance through PrimeVest.
"We're one of those little quiet companies that nobody knows about," said Casey.
One reason is that PrimeVest programs at banks and credit unions don't carry the PrimeVest name, but have private labels. The new Regions Bank program, for instance, will be called Regions Investment Solutions.
