Welcome!

News Feed Item

Aite Group and Riperian Report Identifies Integration of Online Brokerage Platforms as Essential for Financial Institutions to Retain Assets and Attract New Investors

Scivantage®, an independent financial technology provider with proven expertise in online brokerage, tax and portfolio reporting and wealth management applications; Aite Group, a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry, and Riperian, an advisory and consulting firm focused on online brokerage strategy and implementation, announced today a new report titled, “Extend your Wealth Management Business with Online Brokerage.” The research, commissioned by Scivantage, focuses on the latest trends and new technologies driving dramatic change in the online brokerage model, particularly for banks looking to capture a greater share of their clients’ investment assets.

Based on Aite Group’s survey of more than 1,000 U.S. investors who hold a minimum of US$25,000 in investable assets and have access to online trading capabilities, as well as responses from a second survey of 400 U.S. financial advisors, the report leverages Riperian’s online brokerage consulting and implementation methodologies to deliver a tactical framework for a self-directed online brokerage platform that delivers the best client experience.

“Banks and brokerage firms that do not offer a self-directed trading platform are leaving money on the table and exposing themselves to the risk of seeing their client assets depleted as baby boomer clients draw down on assets to fund their retirement and younger clients prefer to invest or bank with a firm that offers online brokerage capabilities,” said Sophie Schmitt, Aite Group Senior Analyst, Wealth Management. “Not only will those financial institutions gain direct revenues from this new service, but they will also benefit from increased revenue in their traditional business as more clients come to view their financial institution as their primary financial services provider.”

“Most bank brokerage firms do not yet support an independent self-directed channel,” said Jim Goodwin, President, Riperian. “At best, customers can receive access to basic online capabilities through the clearing firm's client portal, but few advisors promote this capability. Banks and brokerages that do not address their clients' self-directed investing needs are missing opportunities to deepen these relationships and capture a larger share of assets and revenue.”

The report includes business planning requirements around calculating the revenue opportunity of a self-directed online brokerage platform, and presents financial institutions with a framework for developing a platform that provides a seamless client experience. Additional highlights from the report include:

  • As investors bring more investments to their bank, their perception of the bank as a primary investment provider grows; from 8% of baby boomers without investments (outside of 401K assets) at their main bank to one-third of baby boomers who hold at least half of their investments at their main bank
  • Gen X and Y investors are more likely than baby boomers and silent generation investors to see banks as a primary investment provider; three-quarters of Gen X and Y investors who indicate that all of their non-401K plan investments are held with their main bank see the bank as a primary investment provider
  • Close to 70% of Gen Y investors indicate that they trade online frequently while just over 30% of baby boomer investors say the same
  • All groups stated either paying no or low banking fees, as well as having to pay the lowest trade commissions, were the two features/functions that influenced their online trading platform selection decisions

The report also identified building an account opening process as an essential component of a self-directed investment platform. Firms that still require clients to open an online brokerage account through a call center or at a branch indicate that they are not able to fully support their clients' self-directed needs. This gap in online capabilities can limit account opening volumes and will require additional staff to handle paper-based account opening.

“With increased competition from traditional and online brokerage firms, banks are being challenged to retain and grow their client relationships,” said Chris Psaltos, Vice President, Product Management, Scivantage. “The self-directed investment channel is an important, and often overlooked, component of a profitable bank brokerage business strategy. Banks that are able to execute on the promise of a unified investment experience will benefit as next generation assets continue to be an important element of long-term growth.”

For additional insights from the new report, listen to a recent Webinar featuring Psaltos, Schmitt and Goodwin discussing what banks can do to enhance their online channels as they relate to wealth management.

To download the full report, “Extend Your Wealth Management Business with Online Brokerage,” click here to visit Scivantage’s website.

Editors’ notes: For the purpose of this study “Gen Y” are those investors between the ages of 21 and 31; “Gen X” are those investors between the ages of 32 and 46; “Baby Boomers” are those investors between the ages of 47 and 65, and the “Silent Generation” are those investors over the age of 65.

About Scivantage

Scivantage is an independent financial technology provider with proven expertise in online brokerage, tax and portfolio reporting, and wealth management applications that automate and integrate key business practices for broker-dealers, mutual funds, custodians and prime brokers. From trade order processing and account management to comprehensive cost basis reporting and automated account opening, maintenance and funding, Scivantage’s back-office independent solutions enable financial institutions and financial professionals to dramatically reduce operational costs, strengthen customer relationships and improve productivity. For more information, please visit www.scivantage.com or contact us at +1.866.724.8268.

Enabling Financial Transactions. Automate. Connect. Transact.

About Aite Group

Aite Group is an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, securities & investments, and insurance, Aite Group’s analysts deliver comprehensive, actionable advice to key market participants in financial services. Headquartered in Boston with a presence in Chicago, New York, San Francisco, London, and Milan, Aite Group works with its clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they remain at the forefront of industry trends. For more information, please visit http://www.aitegroup.com.

About Riperian

For more than 15 years, the Riperian team has built and managed successful online brokerage capabilities for leading banks at every stage of development. Riperian delivers strategic plans, product and channel assessments, and program implementation services, supported by proprietary research. For more information, please visit http://www.riperian.com.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching ...