Trust departments are often treated as a necessary but unprofitable part of a bank’s offering.
Leaders accept them as a cost of doing business, a service required to retain high-net-worth clients—even if the department itself runs in the red. But what if the lack of profitability isn’t a given? What if it’s the result of internal habits and outdated assumptions?
Russ Morse, a wealth management consultant and Director of RJM Consulting, has spent decades working with trust departments across the country. His take is clear: profitability isn’t impossible—it’s a discipline problem.
Below, we break down the most common issues and outline a practical path forward.
The real cost drivers: Bad technology and manual processes
Many trust departments are still built on decades-old mainframe systems. These platforms weren’t designed for automation or scalability. As a result, even routine account servicing becomes labor-intensive.
That’s where the real cost creeps in: salary.
Without automation, the only way to meet service expectations is to throw more people at the problem. That drives overhead up and margins down.
The fix? Invest in modern trust accounting technology that automates core workflows. And just as important—ensure your team is equipped to use it. A lack of technical proficiency may seem minor, but it compounds inefficiencies.
The fee discipline problem
If you ask a trust officer why a recent account was discounted, they’ll likely have a polished answer: “This will grow over time.” “We needed to stay competitive.” But in reality, these concessions are often made out of habit or fear—not strategy.
Worse, many departments don’t even follow their own published fee schedules. Internal expectations exist on paper, but when it comes time to close the deal, they’re ignored.
And while it’s true that some discounted accounts grow into profitability, the data tells a different story. Russ estimates that only 15–20% of these accounts ever scale enough to justify the discount. That’s a losing bet.
The fix? Hold the line on pricing. Equip your staff to articulate the trust department’s value proposition. Show why your pricing is justified instead of defaulting to a race-to-the-bottom mentality.
The perils of “Being everything to everyone”
Trying to be a generalist in the trust world comes at a steep cost. Many departments take on everything from cemetery trusts and ILITs to oil leases—regardless of whether they have the experience or infrastructure to support them.
This lack of focus creates operational drag. It’s hard to staff, hard to train, and hard to grow when every account type has its own set of rules.
The fix? Specialize. Pick your lanes—whether that’s traditional personal trusts, foundations, or corporate accounts—and become the best in the market at servicing them. Decline the one-offs. The goal isn’t to serve every need. It’s to serve the right needs, profitably.
Misaligned account size thresholds
Nearly every trust organization claims to have an account minimum—often $250K or higher. But when you look at their book of business, 60% of the accounts are under that threshold.
Why? Again, it’s a discipline problem. Without a strong intake process, staff are free to onboard small, unprofitable accounts without scrutiny. That fills up capacity with low-margin work—and forces you to hire more staff just to stay afloat.
The fix? Enforce intake standards. If you decide to take on a sub-scale account, make sure there’s a strategic reason. Is it tied to a high-value relationship? Is it a child of a profitable client? Otherwise, be willing to say no.
Cultural barriers to profitability
One of the most persistent issues in trust is cultural. Trust professionals are service-oriented by nature. They genuinely want to help people—and that instinct makes them great at their jobs.
But it also makes them susceptible to poor business decisions.
It’s hard to say no to a family with a heartfelt story and $10,000 to their name. It’s hard to reject accounts that technically qualify, even if they don’t make financial sense. And most C-suite leaders, often bankers by background, don’t understand the trust business well enough to intervene.
The fix? Start at the top. Trust department leaders need to be financially fluent, not just service-minded. They must be empowered—and expected—to make profitability a priority.
Waffling on pricing
Contrary to popular belief, pricing pressure doesn’t usually come from the outside. Clients seeking trust services generally understand that they’re paying for fiduciary responsibility, tailored service, and local relationships.
The pressure to discount comes from within—especially from sales staff who fear losing the deal.
The fix? Lead with value, not price. Train your team to have confident, consultative conversations about fees. Reinforce the truth: trust clients are willing to pay more for the right relationship—they just need to know why it’s worth it.
Discipline is the key
Trust department profitability isn’t an external market problem. It’s an internal discipline problem.
Departments that succeed will do so because they:
- Modernize their platforms.
- Define and enforce intake criteria.
- Specialize in what they’re best at.
- Train their people to explain—not reduce—their fees.
- Say no when needed, and yes with intention.
This is a mindset shift as much as it is an operational one. But for departments willing to evolve, profitability is not just possible—it’s sustainable.
