Advisor Technology 2.0 Andrew Gluck CEO, Advisor Products Inc. Editor At Large, Financial Advisor Magazine January 19, 2007
AT + Web 2.0 = AT 2.0 Unleash the potential of the Web Collaborate Personalize Improve service Get feedback
Why You Need AT 2.0 Advances in efficiency are mandatory AUM fees are 40% lower; same number of clients Clients require transparency Madoff, Stanford and other frauds Technology now enables collaboration, personalization Clients already use Web 2.0 Social networking (Linkedin) Personal portals (igoogle, My Yahoo) Texting (Blackberry) Videos (YouTube) User created content (User reviews on shopping sites)) Recession is rearranging landscape anything goes Big brands are sullied If you don t provide AT 2.0 services, others will
Advisor Technology 1.0 Advisor Technology 2.0 Reps download updates to their applications from your website Reps are emailed your firm s newsletter Reps use web based apps Reps log in to personalized portal with content relevant to them and discuss it You build a platform all reps must use with one CRM, PMS, FP app Reps create their client intake or advice processes maybe Reps download or are emailed articles about best practices You publish FAQs about compliance You publish a user manual about your trading platform You offer multiple CRM, PMS, FP apps and let reps choose You embed processes and workflows into rep CRM systems Best practices are embedded in their CRM system, FP, and PMS systems You publish compliance wiki with a discussion forum You provide a video about your trading platform
Who s Using AT 2.0 Who has made their firm manual a wiki? Who offers a blog for their advisors and allows them to comment on the blog? Who offers each of their advisors a personal website and igoogle from your firm for advisors) Who plans to provide retail clients with a portal a financial My Yahoo from your firm? Who is embedding workflow processes in the CRM system used by advisors to promote efficiency and best practices?
Collaborate
Improve client experience Efficiency Save money Increase value of your relationships Clients, employees, and advisors
User Created Content UCC a form of collaboration Star ratings Discussion board Blog Wiki Your own private Wikipedia Wiki for your advisors about your: Platform Compliance Processes Separate Wiki for home office staff Each area has its own admin http://www.wikimatrix.org
Let advisors rate articles, letters, processes and forms
Ask clients how you did. After each service, automated email to clients as part of workflow
Who conducts surveys to see if advisors are satisfied? Who conducts surveys to see if retail clients are satisfied? Of those who conduct satisfaction surveys, who knows how the resulting data are used to improve business? Links Client Feedback To Profitability
Web based enterprise application To be launched for BDs and Custodians. Branded to the BD AI has conducted 1,000 surveys for RIAs Advisor picks questions Email invitations Collect and analyze data to identify At Risk Clients Which Services Clients Value Clients Willing To Give Referrals Agenda Items For Next Meeting
Choose questions for finding additional revenue
Client by Client Marketing Opportunities Survey identifies: share of wallet per client, services each client values, and which clients are willing to give you referrals
Programmatically inserts client answers into a meeting agenda When you meet with a client, your agenda lists: which services he is interested in whether he is willing to give you a referral how large a share of is wallet you now have
Identify Clients At Risk: Assets At Risk We consider assets at risk if the client has your overall level of service as neutral or less. If a client is not at least somewhat satisfied, overall, then the relationship is at risk. 12% of your clients rated overall service as neutral or lower. The list of client names and references below is designed to provide you with a follow up list. These names rated you as neutral or lower. We have included anonymous entries, along with assets provided to give you a sense of the risk. Name Investable Assets Client 1 $100,000 $249,000 Client 2 Not provided Client 3 $100,000 $249,000 Client 4 <$100,000 Client 5 $100,000 $249,000 Client 6 $500,000 $999,000 Total using mid points of ranges provided $4,325,000.00
Increase Client Revenue: Which services are my clients interested in learning more about?
Collaboration For Retail Clients
Collaboration With End Clients Around since 1999 Financeware Advisors and clients not ready for it With recession, it is needed More productive
Enter personal information Enter goals Enter assets Complete risk tolerance questionnaire Present plans online Review and update plans online
Collaboration Benefits: Avoids trip for advisor or client Sue: Advisor works in San Francisco John: Prospect lives 45 minutes away Client enters his own personal information and financial data Saves time, money Enlarges geographic reach of firms
Personal Info Financial Goal Wizard What If Worksheet Risk Tolerance Questionnaire Asset Allocation Risk Management Resources Reports Presentation Allow Don t Allow
Sue creates the financial plan using the data John entered John sees his financial plan recommendations online
For annual plan reviews Instant analysis, instant gratification - Show clients results immediately Quickly react during market volatility Retain clients who relocate
Video
Video Explosion December 2008 150 million U.S. Internet users Watched average of 96 videos each 13% more than the previous month January 2009 15 billion videos viewed 50% increase over January 2008 Video training, marketing is a must Use GoToMeeting recordings Financial Crisis Webinar Series = 200 advisors/week 100 view replay
Personalization
Advisors Build Personal Portals Advisors create their own dashboards Advisors choose how to display their: Holdings by asset class, fund family Largest clients Daily activities Research
Personalization For End Clients
Advisor Technology 2.0 Advisor websites now brochure ware That is about to change Each client s experience personalized Create their own views Articles and research personalized Track their tasks and advisor s See holdings alongside financial plan
Why Client Portals? Connects clients to their advisors Increases transparency, trust Deepens relationships Connects clients to their financial plans Puts performance in perspective Makes relationships stickier (vault)
Integration
Technology s Tower Of Babel Interfaces must all be customized All point to point Speak different languages Needed: Standards Definitions of common data elements What s an asset class? What s a client? What s an alert Standard setting organization APIs make it easier
APIs Ease Integration API Application Programmer Interfaces Enable one program to use data provided by another Salesforce.com is best example Logical access to a DB Ex: An FP API Can call a set of data from the FP application s DB Can contain calculations for net worth statement That data can be displayed on the Web or used in another application, such as a CRM system Before partnering, find out if vendor has an API APIs simplify integration APIs form the new Silver Bullet app for advisors
The Silver Bullets Great idea but advisors don t want it IAS is a good application Silver Bullets won t ever be embraced Advisors are idiosyncratic A single system is for wirehouses Web Services and APIs enable best of breed applications
Efficiency
Use CRM System For Workflow Provide advisors with template workflows Embed best practices into web based CRM system Creates standards for client service Ensure quality service Makes your advisors more efficient and easier to manage Data Collection Life Event Planning Performance Reporting Retirement Planning Financial Planning Investment Selection Client Meetings Estate Planning Investment Monitoring Portfolio Research Trading Marketing Support College Planning Cash Flow Planning Client Intake Rebalancing Tax Loss Selling Account Aggregation
Use CRM System For Workflow Identify 20 core processes your advisors use Document them for different types of firms Solo practitioner Solo practitioner with an assistant Ensemble firm Embed the workflow into your CRM
Advisors can use template processes you create They assign support positions Staff is automatically notified of milestones Requires a huge change in culture Increases efficiency and accountability With jobs scarce, now is the time
VOIP/CRM
VOIP Questions Who s office is on a VOIP system? Of those on a VOIP system, who likes it better than traditional? Of those using a VOIP, who had a terrible time getting it started?
VOIP s Tradeoffs Adoption Internet Reliance Remote Workers Savings (50%) Extensions Anywhere Chat Drag & Drop Visual Voicemail Find Me Soft Phones Remote Employees Barge Transfer To Cell Record Calls Integration
Summing Up Revenues slashed, efficiency needed Web services spawn integration Crisis = money in motion = opportunity Clients demand better service Clients demand transparency Clients using Web 2.0 elsewhere Change with the times or be left behind