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

Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface
Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface

Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.

MetLife poll finds high-value home sales are becoming tax-planning events
MetLife poll finds high-value home sales are becoming tax-planning events

A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.

Kestra adds Raymond James recruiter to expand advisor hiring push
Kestra adds Raymond James recruiter to expand advisor hiring push

The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.

Cerity Partners names Will Peng chief innovation officer
Cerity Partners names Will Peng chief innovation officer

The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.