Increasing Engagement with Client Reporting

Comprehensive, flexible client portfolio reporting has taken greater precedence across the financial advisor space, with over 1/3 of firms reporting recent or future activity around client reporting, according to Aite Group’s recent “Trends in the Fully Disclosed Broker-Dealer Space” study. Industry-wide drivers, including an evolving need to streamline business operations, reduce operational costs and deliver end-to-end performance reporting offerings, are impacting interest in client reporting solutions within the wealth management space.

Growth across the space has continued with Aite Group reporting client asset growth for independent RIAs topping 23%, while discount and online brokers, wirehouses, and self-clearing retail broker-dealers experienced double-digit growth in 2013. However, some are predicting a slowdown—nearly 75% of Advisors believe that there will be a market correction over the next six months—and the marketplace continues to shift alongside technological advancements. As a result, the financial advisory space is faced with increased competition to grow and retain client assets.

Such changes in the wealth management industry have been driven, in large part, by evolving client expectations, with transparency and reporting at the top of the list of concerns for both investors and regulators. With reporting capabilities—encompassing comprehensive reports, user definable benchmarks and asset classes, customizable client billing and basic modeling with rebalancing—Registered Investment Advisors (RIAs) and financial advisors alike are able to increase customer engagement by providing clients with the timely information they need to better manage their investments.

The focus on improving client engagement is far from over. Investors continue to seek a meaningful way to measure their performance and to have actionable tools for improving on performance. The integration of customized client reporting delivered in a compelling, user-friendly format, ultimately enables clearer financial outlooks, delivering on investor priorities.

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Posted in Portfolio Director, Scivantage, Wealth Management and tagged , , , .