Be ready to provide client portals for performance reporting, consultant recommends

Advisers need to adapt as clients increasingly demand 24/7 access to their accounts from all devices.
AUG 31, 2014
Advisory firms need to develop a client portal strategy or risk falling behind the competition, an adviser consulting group said. Portals allow clients to log on to view their account assets and allow for creation of up-to-date performance reports or viewing of periodic, often quarterly, reports. Some incorporate just the assets held in accounts overseen by the adviser, while the best aggregate account information from held-away assets, too. “Portals will become more important over time as clients increasingly demand access to their account information 24/7 and from all devices,” said Bill Butterfield, a wealth management analyst at the Aite Group, which studied client reporting. As demand grows for consolidated reporting, advisers who don't make an effort to provide it may find themselves at a disadvantage, Mr. Butterfield said. About 21% of wirehouse advisers and 19% of independent registered investment advisers provide a portal for clients to view up-to-date performance reports, according to the Aite research released Aug. 20. About 53% of wirehouse advisers and 36% of independent RIAs have a portal from which clients can view static performance reports, the study of 338 advisers found. Brian Vendig, president of MJP Associates, said his advisory firm has had a client portal since 2012 and continues to add services clients can access from it. The portal began as a place for clients to store personal or financial documents to the cloud and for secure communications between clients and the firm through a private inbox, he said. MJP Associates now lets clients aggregate data from other financial accounts to the portal and over the next couple of months the firm plans to work to allow clients to create their own in-time financial reports, Mr. Vendig said. Today, clients can print static performance reports from the portal. “We're not really hearing from clients yet that they want this, but I wanted to provide these conveniences because we're in the business of helping people,” he said. Most clients will need to be educated on how to use these new features, Mr. Vendig said. “If quarterly static performance reports is the best a firm has to offer end investors in the way of reporting communications, these firms are not meeting today's consumers' desire for instantaneous access to up-to-date information,” the Aite report said. The report also showed that more than half of the advisers surveyed are satisfied with current performance reports, suggesting these advisers “are not aware of the sea change that is occurring with regard to client expectations for anytime, anywhere access to investment information,” it said.

Latest News

FINRA puts structured product supervision under the microscope
FINRA puts structured product supervision under the microscope

The regulator is scrutinizing how some firms oversee concentrated positions in complex "worst-of" notes – and wants answers.

RIA moves: Beacon Pointe tops $4B in New England with latest female-founded partner firm
RIA moves: Beacon Pointe tops $4B in New England with latest female-founded partner firm

Meanwhile, Carson Group fully integrates a decades-old practice in Phoenix, Arizona, and Triad Wealth touts its 5x growth to hit a $2 billion milestone.

Gen Z is cutting spending but retirement savings are still constrained by living costs: BofA
Gen Z is cutting spending but retirement savings are still constrained by living costs: BofA

Matt Gellene shares the bank’s latest research on how young adults are managing their finances.

For most advisors, AI turns from threat to competitive necessity
For most advisors, AI turns from threat to competitive necessity

Survey data reveal a widening divide between early AI adopters and those still on the sidelines – with career stage and AUM emerging as key fault lines.

Participation without panic: How outcome-driven ETF portfolios keep skittish clients invested
Participation without panic: How outcome-driven ETF portfolios keep skittish clients invested

Sitting between equity and insurance-like solutions, defined-outcome ETF strategies have matured as an alternative to staying in cash during choppy markets.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline