Charles Schwab to cut its version of Salesforce in July

The custodian cites too many tech options as the reason to end its dashboard partnership

Mar 30, 2016 @ 4:18 pm

By Alessandra Malito

Charles Schwab & Co. will no longer sell its proprietary version of Salesforce as of July 31, a Schwab spokeswoman confirmed on Wednesday.

In an effort to separate components of OpenView Integrated Office — the adviser dashboard it will stop offering — the custodian will continue to work with Salesforce on a second platform, OpenView Gateway. The latter is an open architecture platform for advisers to plug in their existing technology systems.

Schwab launched the two platforms for Salesforce four years ago, showcasing the partnership at an industry conference in February 2012.

The decision was made as a result of the growing number of software providers available for advisers. Now, advisers will be able to choose the technology that fits their practices instead of a one-size-fits-all solution, the spokeswoman said. The company began notifying advisers in late February, and the bundle arrangement will officially end July 31. There are currently 150 clients still using the bundled offering.

Salesforce, which recently rolled out its Salesforce Financial Services Cloud, an adviser-focused client relationship management platform, said Schwab continues to be a great partner for the CRM.

Focusing on integrations with various technology providers is easier than updating and maintaining a proprietary version of Salesforce, said Neal Quon, co-founder of QuonWarrene, a technology consulting firm for the financial services industry.

"You don't really need a middleman," Mr. Quon said. "I think it was a matter of understanding and seeing a lot of tools talk to each other outside of Schwab, so why go through the extra cost and headache of having to maintain that?"

Other custodians have already taken an open architecture approach. TD Veo for example integrates with numerous vendors.

"These custodians are trying to provide end to end solutions, but it is not necessarily built or branded under their banner," Mr. Quon said. "They are facilitating those relationships but what we are seeing best of breed tools are starting to work together."

Before Salesforce announced it was building an adviser-focused platform, many advisers and those in the industry questioned what was the best direction to go: an out-of-the-box adviser-focused software, or one that could be customized.

Many software providers stood by the products they built specifically for the industry, such as Redtail, which is working on a pilot program for an integration with Schwab. That is expected to go live by the end of the year.

OpenView Gateway is also integrated with Junxure, another CRM focused on the wealth management industry.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

What's driving volatility and what's ahead?

Will there be another rate hike? How could it impact markets in 2019. Ed Rosenberg of American Century breaks it down and has all the answers.

Latest news & opinion

Look for more changes at Cetera Financial Group

CEO Robert Moore's resignation signals further adjustments at the IBD network.

10 top scams targeting seniors

Phone calls to a Senate committee hotline show trends in frauds perpetrated against seniors.

Robert Moore, Cetera CEO, stepping down for health reasons

Chairman Ben Brigeman will serve as interim chief executive while a search for a permanent CEO is conducted.

The AMT is no longer a problem for many clients

With income thresholds higher and a lower SALT deduction after tax reform, the AMT will realistically only apply to wealthy Americans with out-of-the-ordinary tax events.

Cetera, other broker-dealers refuse to sign Ohio National contracts

Advisers wonder what the lack of a formal brokerage agreement means from a regulatory standpoint.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print