Quarterly video statements may become the norm

The day when financial advisers send each client a quarterly video of their updated financial performance may not be very far away. Some investment companies already are offering the technology that allows for this capability, and some are offering to do it for advisers. Chris Roberts, an adviser with United Planners Financial, over the past year has been sending about half his clients video statements provided by money manager CLS Investments, which manages most of his clients' assets. CLS Investments customizes each client video with their portfolio and shows the value at the start of the quarter, compared with the balance at the close of the quarter. The video includes a market overview for the quarter and a description of how CLS managers reacted. “When I speak to my clients about the videos, they have nothing but positive things to say,” Mr. Roberts said. “The videos make them feel like they are being spoken to, and makes it feel closer to their investments.” The video statements are a supplement to their traditional, detailed statement. “I think this may be the general direction everyone moves in the future,” Mr. Roberts said. “People don't want to look at their statements; they are more bottom-line oriented, especially the millennials.” Scott Kubie, CLS chief strategist, said clients “shouldn't be looking to 'find time' to review their statements, but instead, should be compelled to engage, receiving them in an easily digestible format whenever and wherever they want.” Some financial advisers considering video statements are looking at what a company called Idomoo allows, according to Shlomo Benartzi, a behavioral economist at the UCLA Anderson School of Management. The Tel Aviv, Israel-based firm offers financial services and other companies the ability to offer clients personalized videos that can explain portfolio value. Idomoo shows how by using the technology a firm can explain a pension statement with a one-minute video. Any creative studio can use the Idomoo technology to create a template or master video which is then personalized. It takes about eight weeks from an initial concept to a final videos ready for clients, the company said.