Archive for the ‘ asset management ’ Category

Wealth and millennials: how they think, spend and save

The millennial generation – those born between the early 1980s and mid 1990s – are now either just joining the workforce, or well into their careers. As millennials gather the responsibilities of adulthood, financial and wealth management products come with the territory – this is the essence of financial mobility. Not surprisingly the wealth industry is paying close attention to this coming generation.


Possibly the most studied segment in history, millennials have been variously labelled as narcissistic, entitled, tech-savvy and ethically conscious. Their relationship with financial institutions is well documented. The financial crisis and subsequent scandals created a general feeling of distrust toward the industry, but millennials have started to emerge as the largest client opportunity in the coming years. In order to capitalize on the opportunity, wealth and asset managers must adapt to successfully serve this complicated and fiscally important generation.
The growing millennial impact

Last year 40 percent of the global adult population were under 35 years old. Today they account for US $1.3 trillion in direct consumer spending in the US. This figure will balloon over the next decade as the millennial generation is projected to account for 75 percent of the workforce by 2025  (source: Bank of America Merrill Lynch).
Three trends will dictate how this population will acquire and use their wealth.
First, as the current 18-34-year-old cohort enter prime earning years, their liquid assets will increase substantially.


Second, these younger generations are seen to be more entrepreneurial than their parents, which should accelerate the increase of their available assets: Deloitte found that 54 percent of millennials have started, or plan to start, their own business – 27 percent are already self-employed.


And thirdly, millennials should benefit from a transfer of wealth from their parents, the baby-boomers, driving a future wave of inheritance that wealth managers need to prepare for.


Behavioral characteristics


So how should wealth managers adapt to serve this group successfully? Critically, you need to get a good understanding of their behaviors.


Millennials are drawn to authenticity and want this reflected in how they live, work and invest. Long-established wealth managers steeped in the traditions of stability and continuity may need to rethink their own culture and recruitment policies to connect and engage this coming generation, using a more empathetic client communication approach.


They are socially and environmentally aware, not only concerned with the state of the world, but vocal about the need for change. Which means they don’t consider profit as the sole success factor of an investment. Millennials seek out organizations and investments that prove their value with acts of social responsibility.


Nor has the impact of the global financial crisis been forgotten. This generation was greatly affected and as a result is more cautious and conservative than baby boomers.


This was also the first generation to grow up in a digital platform world, acknowledging technological innovation as a constant. They adopt early. They try out new services. They value utility. They resent friction.


Their financial habits are like everything for them, always online first – it is their default setting.


For millennials, technology is the key differentiator that wealth managers must be aware of. Deloitte found that 57 percent would change banks for a better technology platform solution. There is no reason to think wealth managers are not under the same scrutiny to offer client portal and client reporting advancements.


Financial advisory adaptations


Based on these different behaviors, it is fair to assume millennials are not being satisfied. But the opportunity to do so clearly exists, and for wealth managers who react it will be greatly rewarding. To combat distrust, financial advisors need to focus on pricing transparency and become more communicative and open, ideally with new choices of alternative investments, markets and products.


Most importantly, wealth managers need to better engage millennials digitally. The InvestCloud Digital Experience involves clients, provides an intuitive experience and is highly personalized, supporting many varied personas in order to work for each individual. Opportunities abound for wealth managers to advance the millennial client experience – not to mention to make advisor portal and other internal tools better for the management of this crucial client demographic. Now is the time to act.


To find out more about how we can help you digitally engage millennials, request a demo through our website at or call us at +1 (888) 800-0188.


#clientportal #advisorportal #clientcommunication #clientreporting #digitalplatform #financialmobility

The genie is already out of the bottle for digital advice


In the last month, the so-called “DOL Fiduciary Rule“ has gone from being due for imminent implementation to now being in doubt, or at least materially delayed.


While the April 10 deadline for partial Rule compliance was postponed (the January 1, 2018 deadline is still up in the air), many firms have spent a great deal of time preparing for it. And while those firms are waiting to hear details about the delay as well as whether it will be scrapped altogether by the new Presidential Administration, neither changes the momentum.


Even if the Rule is repealed altogether, it doesn’t remove the massive benefits of digital advice. At this point, the genie is out of the bottle. Advisors and investors alike have already gone too far down this road, and are now in a better, stronger position, not to mention, client expectations are shifting to a new normal as clients exert their increasing financial mobility.


Digital opportunity

The Rule – some six years in the making – was designed to expand the definition of an “investment advice fiduciary” to all financial institutions and individuals offering financial advice to retirement accounts and qualified plans, effectively elevating many advisors’ and planners’ obligations to clients from a “suitability” standard to a much higher “fiduciary” standard. They would be bound legally and ethically to meet the standards of that status, including changes to methods of client communication and client reporting.


This move – in concert with the reduction of services eligible for commissions – seemed initially to many in the industry to simultaneously cut out a revenue stream (commissions) while increasing costs (because of the additional time, effort and data-tracking systems required to comply with the Rule). But most advisors were not prepared to get out of the retirement game.


Luckily, FinTech came to the rescue, harnessing and building upon elements of digital advice previously applied almost exclusively in the Robo arena. The smart players quickly recognized both salvation and opportunity in digitalization.


Through a digital platform, forward-thinking advisors have discovered they can deploy advice from an advisor portal to a client portal as well as keep records in a fashion that both complies with the Rule and prevents ongoing cost increases to serve that client base. But they also found a better, more efficient way to do business – i.e., a way to actually lower costs vs. in-person meetings, paper forms and PDF reports, and in the process investors got a better digital experience.


Furthermore, most investors feel more comfortable with a fiduciary standard – the same standard that applies to RIAs. So digital advice provisioned under the Rule improves client satisfaction and loyalty, which in turn increases the longevity of the advisory relationship. With digital advice, advisors and planners promote stickiness – because it gives clients more control over how they can view and act on their investments on a client portal – at the same time as decreasing the costs to the advisor and planner of serving each client. Combining these two benefits is an obvious win-win.


No U-turn in advice

While the Rule started as a regulatory regime, the double win to the advisory firm and to the investor – i.e., value innovation – is impossible to deny. Many in the industry see this, and are pushing forward regardless. Now it’s about maximizing scale, profitability and investor happiness. Efficiency is the new goal. The Rule simply acted as a driver, with the result being the embrace of digital processes. Presidential Memos and a possible future Executive Order do not change that.


The genie isn’t going back into the bottle.


To find out more about how we can help you with digital advice, request a demo through our website at or call us at +1 (888) 800-0188.

How to build a robust disaster recovery plan?

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InvestCloud can closely recall the second-costliest hurricane, known commonly as Superstorm Sandy, which was a Category 3 hurricane that affected 24 states in the US and will see its third anniversary in October 2015. Its impact was so severe that the New York Stock Exchange and Nasdaq closed for two days due to power outages and flooding in the tri-state area. The economic impact of this event trickled down to various sectors, including communications and transportation, as the hurricane flooded the streets of New York, New Jersey, and even destroyed parts of the subways.

The aftermath of Sandy, coupled with New York’s role as a major player in the global economy, brought a growing focus on disaster recovery in the financial technology industry. Read more:

What should advisors know about the growth of millionaires?

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Several months ago, The Boston Consulting Group (BCG) released a new report entitled, Global Wealth 2015: Winning the Global Growth Game. Apart from emphasizing the opportunities offered by the growth in the key advisory demographic, “millionaire households,” the report also discusses the opportunity against the backdrop of a more challenging regulatory climate and the growing demands for service and transparency that this group brings. Read more:

3 Key Drivers in Hedge Fund Administration Outsourcing in 2015

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With new assets come higher expectations about transparency, expectations that cannot be easily met without outsourcing. Click on image to read more from InvestCloud.

InvestCloud Case Study: Glenmede

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Embrace the Digital Experience. Read and see video on how Independent investment and wealth management firm, Glenmede utilize InvestCloud to create their client portal by clicking on image.

InvestCloud wins Best Cloud Computing Innovation of the Year!

 asset management cloud, investment management cloud, accounting data warehouse, advent apx, advent axys, advent geneva, client reporting, cloudonomics, coreone, customized client reporting, financial platform, finra, hedge fund cloud, data warehouse 3.0, big data, cgeneva, family office, family office cloud, family office reporting, john wise, investment advisors, investcloud, social media, sec, vistaone, lightport, wealth management cloud, wealth management reporting, website design, addepar, asset management, best investment management platform FStech names InvestCloud as Best Cloud Computing Innovation of the Year! Click on image to read more about the award. Read more at: