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Mobile Technology for Wealth Management Advisors

Disclaimer

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Mobile Technology for Wealth Management Advisors

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Introduction Financial advisors face difficult times. The volatile market conditions force advisors to work much harder to retain their client’s business, while clients demand better service levels from their financial services firms. Many clients are much better informed these days and have access to real-time information wherever they are. Mobile phones, especially in their latest incarnations, have changed the way many consumers interact with one other. Receiving and sending e-mails from a mobile phone is common practice, and many consumers use their mobile phones for getting directions, searching for restaurants, or shopping on websites like Amazon.com. In November 2008, TD Ameritrade started offering its clients mobile trading applications for their Apple iPhone and iPod touch. These, and similar applications that are offered to retail clients, also increase the pressure on financial advisors to keep up with their clients. Unfortunately, the technology used by financial advisors often lags far behind what is technically possible and what is available to consumers. Having the most up-to-date information available when the client inquiry reaches the advisor can make an important difference in a client relationship, especially in difficult times like these. This article looks at the current use of mobile applications among financial advisors and their desire for this type of technology. In July 2008, Aite Group surveyed 201 financial advisors on their preferences for mobile support. The survey population consisted of an equal mix of independents, registered investment advisors (RIAs), and captive brokers.

The Importance of Technology for Advisors Advisors clearly understand the critical role that technology plays in their daily work life; 72% of advisors consider technology either very important or essential to their decision to work for a particular firm.

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Requirements of Advisor for Mobile Support Today’s life has become increasingly more mobile. Well over one-third of advisors state that they spend more than 25% of their work time outside the office, and only 14% of advisors conduct all their business in the office. Figure 3: Time Spent Outside the Office

Source: Aite Group survey of 201 financial advisors, July 2008Through the rise of mobile and smartphone devices, clients and advisors alike have become used to staying in touch and being reachable when on the road. The widespread availability of mobile devices is demonstrated in the following chart. Only 3% of advisors do not carry any mobile device, while more than half have devices with capabilities that go beyond a standard mobile phone.

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Source: Aite Group survey of 201 financial advisors, July 2008 Almost two-third of advisors have a data plan in place with their mobile provider that allows them not only to make calls from their mobile device, but also to transmit data and access the Internet. Figure 5: Type of contract with mobile carrier

Source: Aite Group survey of 201 financial advisors, July 2008

Voice plan only38%

Voice and data plan62%

Q: What type of contract do you have with your mobile provider?

Figure 4: Type of Mobile Device Owned By Advisors

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While mobile devices carried by advisors offer a great deal of capabilities, financial services firms have only slowly started turning these capabilities into increased advisor efficiency. Only 22% of advisors currently use their mobile devices for business tasks other than sending e-mails and managing contacts and calendars, compared to 53% of advisors who carry a mobile device that could also be used for other tasks. This suggests that advisors are underutilizing the capabilities of their mobile devices. Figure 6: Current use of mobile device for business

Source: Aite Group survey of 201 financial advisors, July 2008 The advisor’s desire for increased mobile capabilities becomes clear when asking them if they would find access to business applications via their mobile device useful. Only 26% of advisors say they would not find any value in accessing business applications via their mobile device, while 62% of advisors would find it useful.

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Figure 6: Desired Use of Mobile Device For Business

Source: Aite Group survey of 201 financial advisors, July 2008 Asked what business application advisors would most like to access via their mobile device, respondents cited CRM by far the most often. Trade order management, financial planning, and research systems delivering market data are follow some distance behind. Advisor interest in accessing business applications clearly revolves around staying up-to-date when it comes to their clients and the market. The access to trading and order management from a mobile device would allow advisors to take emergency trades should market or client events require these actions.

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Q: Do you think it would be useful to have access to business applications you use in the office via a mobile device?

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Figure 8: desired access to business applications

Source: Aite Group survey of 201 financial advisors, July 2008

Conclusion Mobile devices have allowed our society to enter a mobile era. The computing and networking capabilities delivered through these devices were available only from desk computers not long ago. These types of capabilities have not only transformed the way consumers interact, but have also raised the expectations consumers have about interacting with their financial advisor. The financial services industry, however, has lagged behind in making use of mobile capabilities. Aite Group believes this might change in the near future. Aside from expected client service levels, advisor productivity has become a key measure and a top priority for wealth management firms addressing mass-affluent and high-net-worth client segments. The current market conditions have increased the number of client inquiries advisors are facing on a daily basis. Being able to respond to these inquires in the most efficient manner and in the shortest period of time, regardless of desk presence, will give advisors a competitive advantage. This is particularly important since investment performance for many clients has been less than stellar in the last couple of months. Making use of mobile capabilities will allow financial advisors to increase efficiency and provide a better service to their clients. It should come as no surprise that 62% of advisors are asking for these types of capabilities.

Mobile Technology for Wealth Management Advisors Jan 2010 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A. Worldwide Inquiries: Phone: +1.650.506.7000 Fax: +1.650.506.7200 oracle.com

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