|By Business Wire||
|February 10, 2014 09:02 AM EST||
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.
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.
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.
"Operations is sort of the maturation of cloud utilization and the move to the cloud," explained Steve Anderson, Product Manager for BMC’s Cloud Lifecycle Management, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 21, 2017 10:45 PM EST Reads: 1,740
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
Feb. 21, 2017 10:00 PM EST Reads: 8,708
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 21, 2017 09:45 PM EST Reads: 600
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Feb. 21, 2017 09:30 PM EST Reads: 635
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Feb. 21, 2017 09:15 PM EST Reads: 5,584
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Feb. 21, 2017 09:15 PM EST Reads: 608
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Feb. 21, 2017 09:00 PM EST Reads: 1,080
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
Feb. 21, 2017 08:30 PM EST Reads: 4,545
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Feb. 21, 2017 07:30 PM EST Reads: 368
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Feb. 21, 2017 07:30 PM EST Reads: 1,167
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Feb. 21, 2017 06:30 PM EST Reads: 2,408
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Feb. 21, 2017 06:30 PM EST Reads: 7,582
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
Feb. 21, 2017 06:30 PM EST Reads: 1,256
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Feb. 21, 2017 06:15 PM EST Reads: 921
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
Feb. 21, 2017 06:15 PM EST Reads: 1,564