Grendel may be the shape of tools to come

The acronym RIA refers, of course, to registered investment advisers.
MAR 24, 2008
The acronym RIA refers, of course, to registered investment advisers. But in web parlance it also means rich Internet application — which is exactly what is offered by Grendel, an online information management system for financial advisers that was introduced last year by Big Brain Works LLC of West Chester, Pa. Grendel combines client relationship management, unlimited account aggregation, compliant digital filing, practice management tools, a portfolio overview, a client portal and other features in one application that can be used by advisory firms of any size. Last month, Grendel introduced a supervisory module that allows a broker-dealer to audit advisers, manage compliance issues and maintain files and file retention policies remotely.

CRM, WITH EXTRAS

Like other rich Internet applications, Grendel's performance is close to what a user can achieve running an application locally on a PC, providing the user has a broadband connection. "Think of Grendel as CRM with a bunch of extras, in a package that from the start was created for financial advisers," said Aaron Guidotti, chief executive of Big Brain Works and the creative force behind Grendel. He began developing the application 12 years ago as a consulting project that he worked on with his roommate and the advisory firm for which the roommate worked. "It morphed over the years, and only in the last two and a half years have we developed it in earnest for the outside world," Mr. Guidotti said. The design and responsiveness of the application are impressive. While only a handful of advisers subscribe to the system — large-scale marketing efforts are under development — users are very complimentary. Jeff Bland, an adviser with Burrus Institutional Wealth Services, a two-adviser firm based in Salt Lake City, said he has used Grendel for eight months and found it appealing for a number of reasons. "Frankly, we used Naviplan and it inhibited us from getting business," said Mr. Bland, whose two-year-old firm manages $30 million from 50 clients. "We'd go to a client and say, 'Here, fill out this 40-page questionnaire so we can get an account open for you and get started,' and we wouldn't hear from them again," he said. "With Grendel we have exactly what we need and not a lot of extraneous stuff. They also are very responsive when it comes to support or things we ask for," Mr. Bland said. David Visintainer, an adviser with West Chester-based Capital Investment Services, said his firm, which manages $100 million, relies on the application. Acknowledging a bias, given that his firm and Grendel are controlled by the same owner, Mr. Visintainer stressed that Capital Investment Services is as wary of down time and as eager for reliability as any other midsize advisory firm that Grendel hopes to serve. "Just having all the info right there in front of you is immeasurably important. You can pull up their account, even see their holdings and account balance, and you sound so informed when you are speaking with clients on the phone, because you have all the right files right there at your desk," Mr. Visintainer said. "The Projects section is probably one of the most key features for us," he said, referring to Grendel's workflow module, which allows staffers to record every meeting or action taken on behalf of a client and keep the information in one central place that is accessible to everyone in the firm. "We haven't yet had a full audit, but we're affiliated with Royal Alliance and have had unofficial meetings," Mr. Visintainer said. "They liked the file structure and ease of access, so we feel pretty confident." In addition to providing an easy-to-use format, Mr. Guidotti has taken pains to find a top-notch site host — Rackspace U.S. Inc. of San Antonio, which has eight data centers around the world. Account aggregation is provided by Yodlee Inc. of Redwood City, Calif. Because Grendel is designed to be used jointly with clients, advisers can brand their interface with the name of their firm. Costs vary depending on the mix of components an adviser chooses. Three versions of the service are available, ranging from $3,500 to $5,000 a year, which includes training. For an annotated slide show of the Grendel interface, visit this story online at investmentnews.com. E-mail Davis D. Janowski at [email protected].

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