2014 State of the Industry Survey

Transcription

1 2014 State of the Industry Survey Account Opening Technology Fees Managed Money Compliance User Experience Practice Management Support Model Data Aggregation Banks Cost Independents Tools Social Media Hybrid Model Books & Records Business Process Management To improve is to change; to be perfect is to change often. -Winston Churchill

2 Demographics [N=55] Good Sample Size Broad Representation Bank and Independents 2

3 Third Party Solution Providers Coming of Age 74% Largely Proven Leverage Resources More Predictable Advisor Justifiable Fees Limit Proprietary Maturing Improved Vendor Management Beyond Clearing Firms Multiple Instances of Software Functionality Increased Support Data Management Cloud 3

4 2013 Retrospective 100% 75% 50% 25% 2013 Deliverables - Your Initiatives 65% 62% 52% 49% 48% Resource Demands Social Media, Account Opening, Data Aggregation, AML Compliance, Sales Practice Surveillance, Annuity Due Diligence, esignature Growing 0% Social Media Monitoring & Archiving Account Opening/ Onboarding - Reducing manual (paper) processes Data Aggregation Sales (Trade) Surveillance/Advisor Supervision e-signature 4

5 2014 & Beyond Process 5

6 Heat Map - Initiatives Transition from compliance focused to field efficiency focused Front Office Account Opening / Onboarding Account Opening / Onboarding (mobile) Data Aggregation (Client Marketing) E-Signature Customer Portal (SSO) Firm CRM Forms Management Advisor Portal (SSO) Mobile / BYOD Practice Management / Sales Productivity Annuity Due Diligence Marketing Services Portfolio Monitoring / Rebalancing Increased desire for business intelligence and consolidation of books and records data. Back Office Business Intelligence Reporting AML Compliance Monitoring Books & Records Modernization Business Proces Management / Workflow Compliance (KYC) Cyber Security / Client Data Protection Enterprise Document Management Sales Surveillance Supervision Social Media Monitoring and Archiving Compensation Management Data Management (ODS) Licensing & Registration

7 Support Model - Enterprise Top Three Tools are: Data Aggregation (Client Data), CRM & Financial Planning Which Enterprise 3rd party Solutions are on Your Platforms? 100%# 75%# 50%# 70% 38% 68% 54% 70% 51% 30% 25%# 11% 14% 0%# Aggregated Data (Customer Portfolio Performance Reporting) Aggregated Data (Below the line account information) Annuity/Insurance Processing CRM Document Management Financial Planning Forms Management On-Boarding SMA / UMA TAMP Platform 7

8 Support Model - Technology Fees 8

9 Support Model - Service Dedicated Advisor/ Field Technology Support Supporting the Advisor s IT and providing Level 1 application support is now more the norm at broker-dealers 33% 67% Dedicated Advisor/Field Technical Support No Dedicated Advisor/Field Technical Support Support Services 37% 37% Level 1 technical support for advisor facing technologies Coordinate Level 2 support/problem resolution with vendors 87% Maintain recommended list of advisor solutions Physical hardware support 43% 53% 63% 9 Data/solution integration support Training of new staff

10 2014 Table Stakes (Beacon Strategies, LLC Analytical Assumptions) Support Hybrid & Dual Registration Asset Management via Brokerage Top Solutions / Adoption Rates Books & Records - Limited by Manual Entry Majority - Multiple Clearing Account Opening IT and Level 1 Application Support 10

11 Most Popular Vendors by Category Advisor Focused Home Office Focused Capability Firm Capability Firm Data Aggregation (Client Reporting) Albridge Clearing Services Pershing, LLC Data Aggregation (Pure Play) Account Opening / On-Boarding Client Relationship Management Annuity Due Diligence Financial Planning DST Systems Pershing, LLC Redtail Technology Morningstar AI Advicent Custody Services Operational Books & Records Business Intelligence Reporting Compensation Management Schwab Institutional & TD Waterhouse Pershing, LLC Proprietary In-House M&O Systems Marketing Services MarketingPro Sales Practice Review SunGard Protegent E-Signature DocuSign Licensing & Registration Proprietary In-House Forms Management Laser App Social Media Monitoring & Archiving Smarsh 11

12 Favorite Vendors to Work With... Ease of Use Marketplace Knowledge Flexibility 12

13 Solution Provider Decision Drivers 100%# What%are%the%Key%Considera0ons%when%Choosing%a%Solu0on%Provider?% 75%# 65% 60% Three key drivers: Cost, User Experience & Ability to Work with Other Vendors 50%# 48% 25%# 35% 30% 23% 20% 20% 0%# Cost User experience of the solution (Look/feel/ease of use) Ability/willingness to work with other vendors Solution reputation/quality/sophistication Overall Relationship Support Cloud/SAAS/Service Bureau Offering Financial stability of the vendor Underlying technology (e.g., database design, programming language) 13

14 Deployment Gauntlet A Root Problem Rolled Up: BPM & Portal are the biggest challenges 14

15 Deployment Complexities Change is such hard work. -Billy Crystal 15

16 What is in Play What the Research reflects Regardless of size, broker-dealers are transitioning to support the hybrid advisor model. On-Boarding / Account Opening remains the greatest operational challenge facing broker-dealers. Focus has transitioned from compliance (KYC) to front office revenue. Cost and user experience are the key drivers to solution provider choice. Technology fees are more the norm and increasing for 1099 broker-dealers. What was heard in the Breakout Sessions The future state user experience (three years out) is strategically cloudy and thinking is centered on apps, not the holistic experience between the home office and advisor, and the advisor and client. Insurance is key revenue focus for broker-dealers, but is also a real technology and data challenge. For the vast majority of BDs, managing and understanding the ever increasing volumes of both structured & unstructured data represents a significant challenge and priority. Social Media monitoring and archiving appears to have transitioned to understanding how to more fully exploit social media as part of an overall marketing, client acquisition and retention strategy. 16

17 Beacon Strategies, LLC - Est Available Services FreshLook - an intensive four-day, on-site exercise that will help your leadership team stay abreast of the rapidly changing business environment. Primary goal of aligning business strategy with organization, resources and technology with organization, resources and technology. Anchor - A knowledge-based concierge service. This unique service allows you to have access to dedicated resources for staying current on the industry trends, relevant solutions and hot topics within the broker-dealer marketplace. Additionally, subscribers have access to our team s unique skill-set. Library - Marketplace and solution provider research that supports thought leadership. Navigate - Centering on projects that demand specialized or custom requirements: Competitive Research, Request for Proposal (RFP), Targeted Solution Reviews, Detail Strategic Alignment with Roadmap Development, Solution Roll Out. Radar - The pure presentation compilation of Beacon Strategies, LLC research that provides firms, management teams, and advisor conferences contextual perspective as to the underpinnings of the broker-dealer and advisor marketplace. 17

18 Addendum Solution Provider Evaluations - Front Office Account Opening SunGard - Protegent National Financial - Streetscape Docupace - epacs 10% 14% 14% Proprietary / Home Grown Pershing NetX360 35% 39% Client Relationship Management Ebix - Smart Office 22% Salesforce.com 29% Annuity Due Diligence Proprietary / Home Grown 18% RedTail Technology 53% We manually review Morningstar - Annuity Intelligence 42% 42% 18

19 Addendum Solution Provider Choice - Front Office continued Client Data Aggregation and Performance Reporting Broadridge - Investigo 22% DST - Vision Professional 37% Albridge 49% Pure-Play Data Aggregation CashEdge By-All-Accouts DST Systems 14% 14% 18% Forms Management Quik Proprietary / Home Grown LaserApp 23% 32% We do not have this type of technology solution 52% 66% 19

20 Addendum Solution Provider Choice - Front Office continued Marketing Services AdvisorWebsites Proprietary / Home Grown Broadridge - Forefield Emerald Publications Peter Montoya 16% 27% 32% 39% 66% E-Signature Rebalancing Software FolioDynamix Orion Software Proprietary / Home Grown Provided by my custodian or clearing firm Envestnet/Tamarac We do not have this type of technology solution 6% 9% 19% 19% 19% 32% 0%# 25%# 50%# 75%# 100% SIGNiX 13% DocuSign We do not have this type of technology solution 38% 46% 20

21 Addendum Solution Provider Choice - Home Office continued Operational Books & Records SunGard - Protegent 10% National Financial - Streetscape Docupace - epacs 14% 14% Proprietary / Home Grown Pershing NetX360 35% 39% Compensation Management Techmate - WinOps 11% M & O - ServeMe 11% Business Intelligence Reporting Salesforce 18% Proprietary / Home Grown 34% Albridge 25% Proprietary / Home Grown 45% 21

22 Addendum Solution Provider Choice - Home Office continued Enterprise Document Management LaserFiche 15% Docupace Technologies - epacs Proprietary / Home Grown 15% 24% Licensing & Registration Management Manual - Rely on our Compensation System for data 15% RegEd - an affiliate of StoneRiver Proprietary / Home Grown - Utilize FINRA 46% 59% Annuity Sales and Processing Rely on our BGA Pershing - Subscribe We do not leverage this type of technology solution 22% 28% 35% 22

23 Addendum Solution Provider Choice - Home Office continued Social Media Monitoring & Archiving Global Relay RegEd - Arkovi HearSay Social We do not have this type of technology solution 9% 9% 11% 15% Smarsh 39% Compliance - Sales Practice Review EAI Actimize - Nice Albridge - Actimize We do not have this type of technology solution DST - Subserveo SunGard - Protegent Proprietary / Home Grown 4% 4% 11% 13% 13% 24% 38% 23

24 Access & Contact Chip Kispert BeaconFogHorn 24