Web savvy boosts client trust level

Not surprisingly, investors are becoming more adept at using technology to manage their finances and evaluate investment-related information
OCT 16, 2011
Not surprisingly, investors are becoming more adept at using technology to manage their finances and evaluate investment-related information. In fact, a recent survey of 4,400 U.S. households found a 350% year-over-year increase in investors' viewing of online videos and a 300% jump in their participation in webcasts. The survey, from Hearts & Wallets LLC, also found a big uptick in investors' use of the Internet to assess potential new providers of financial services based on their websites, read blogs and traditional media, and make use of financial calculators. It also found that investors are more willing to subscribe to online investment services and content. Financial advisers should encourage clients to use the Internet to keep track of their investments and follow the markets, said Chris Brown, a principal at Hearts & Wallets. In fact, doing so may actually bolster a client's trust in his or her adviser. “Encouraging clients to use technology in concert with the adviser relationship makes the adviser seem like an open book with nothing to hide, thereby increasing trust in his advice,” Mr. Brown said. MarketTools Inc. conducted the online survey for Hearts & Wallets. *** SunGard Data Systems Inc.'s product managers are on the road this week, showing off the firm's new WealthStation Mobile Meeting application. Available now, the application allows users of WealthStation to access some features of its wealth management platform through tablet computers. For those unfamiliar with WealthStation, it is a wealth management application — actually, it is many applications bundled together — used by many advisers. Among the many functions that it integrates on one platform are asset allocation, client management, data aggregation, and client access and compliance tools. With the Mobile Meeting application, advisers are able to share reports and performance data with clients using any of the major tablet platforms, including Apple's iPad, BlackBerry's PlayBook and the Android-based tablets. To be clear, this offering doesn't go as far as what Trust Co. of America appears to have accomplished in being able to deliver its entire revamped platform on any computer or tablet (InvestmentNews, Oct. 10). I liken the new WealthStation application to more of a very sophisticated electronic binder whereby advisers can prepare and store specific presentations and materials for sharing with clients in personal meetings. I will write more on this once I have had a chance to kick the tires myself and speak with some advisers who have done the same. * * * Bank of America Corp.'s problems last week with its banking website got me thinking about disaster recovery planning. For those not following the headlines, customers of BofA's online banking site experienced slowness or had trouble accessing their accounts throughout the week. The bank blamed the problems on a continuing upgrade and heavy traffic to its site. I came across a link to a chapter of BusinessContinuityToday.com in my inbox titled “Disaster Recovery by the Numbers.” Business Continuity Today is one of many IT e-information services that I subscribe to, and it is better than most. Each chapter is written by an industry expert and is free, provided you agree to register and be willing to accept a little spam now and then. This 21-page guide on disaster recovery offers 13 steps to follow in developing a plan. Among those steps: Create a business process and resource inventory, calculate downtime costs (with formulas, a downloadable workbook and calculators on the site to help you), calculate the cost of lost data, determine the costs of available classes of disaster recovery systems and set your recovery objectives. For the firm that needs nothing more than a laptop and Internet connection, congratulations, your recovery needs are simple and straightforward. For the thousands of advisers with more-complex needs, this can serve as a starting guide to getting that long-overlooked disaster recovery plan completed. Email Davis Janowski at [email protected]

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