|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.
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
May. 25, 2016 09:00 AM EDT Reads: 1,227
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 25, 2016 08:41 AM EDT Reads: 109
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 25, 2016 07:15 AM EDT Reads: 1,121
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
May. 25, 2016 05:00 AM EDT Reads: 1,003
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
May. 25, 2016 04:45 AM EDT Reads: 2,433
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 25, 2016 04:45 AM EDT Reads: 846
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 25, 2016 04:15 AM EDT Reads: 3,039
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 25, 2016 04:00 AM EDT Reads: 1,068
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
May. 25, 2016 04:00 AM EDT Reads: 1,701
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
May. 25, 2016 02:00 AM EDT Reads: 1,137
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 24, 2016 11:45 PM EDT Reads: 838
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
May. 24, 2016 09:00 PM EDT Reads: 1,811
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
May. 24, 2016 08:45 PM EDT Reads: 985
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. 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 Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
May. 24, 2016 06:00 PM EDT Reads: 4,670
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices 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 business opportunity. Submit y...
May. 24, 2016 05:00 PM EDT Reads: 1,859