While Pinnacle Financial Partners is a bank, the company has
diversification of revenue streams. The company is involved in five areas of
diversification: Financial Planning, asset management, wealth advisors, trust
and insurance. The company also has diversification within its area of core
competency, which is consumer banking. Within the consumer banking arena,
Pinnacle has specific target areas such as mortgages, loans, online banking,
health savings accounts, and Grizzlies Banking for Grizzlies fans. Customers
who sign up for Grizzlies Banking get extra benefits such as a free Grizzlies
debit card with not usage fees.
The five areas mentioned above are extra service lines that
provide a cash flow for Pinnacle. It’s a way for the company to protect itself
from market influences. For example, if Pinnacle is not making money from
mortgage loans, it might still have an opportunity to get additional revenue
from selling insurance.
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