Embracing Mobile Technology
Embracing mobile technology:
the next game changer for
financial advisors
We are witnessing a massive change in the way we access and consume
information. The world of mobile technology is upon us and is dramatically
altering how we work and play when we are on the go. With increased
Internet speeds and slick smartphones and tablets, we can send
messages, take pictures, play videos, and perform many business
functions quickly and efficiently outside our homes and offices. In fact,
a recent study by Microsoft ® Tag1 predicts that cell phone usage will
actually eclipse time spent with desktop and laptop computers by 2014.2
To understand how mobile technology is affecting financial advisors, we
interviewed four senior executives at the home offices of independent
broker-dealer firms (IBDs), and three advisors associated with independent
registered investment advisor (RIA) firms. We also spoke with well-known
technology consultants who work with IBDs and RIAs.3 This paper
summarizes these discussions.
Spring 2013
Inside
Mobile Usage Explodes 2
Advisors Show Growing
Interest in New Apps
3
Mobile Empowers
Advisors and
Engages Clients
3
Where Do We Go
from Here?
5
Considerations when
Going Mobile
6
The Future Is Now
7
Interviewees8
Highlights
•Mobile
technology is enabling financial advisors to work any place at virtually any time* and to stay highly
connected with their clients.
•The
use of smartphones and tablets among advisors is much higher than the national average.4
•From
placing trades on the go to reviewing client accounts and preparing financial plans, advisors are using
a range of apps to enhance their workflow when off site.
•Yet
we are still in the early stages of mobile use in the financial world and will likely see many new developments
on the horizon — ​­from new devices to more robust and integrated apps.
•You
may want to consider the independent perspectives outlined in this paper when preparing to capitalize on
the mobile opportunity.
*System availability and response times may be subject to the mobile phone network being used and to market conditions.
1
Microsoft and Windows are either registered trademarks or trademarks of Microsoft
Corporation in the United States and/or other countries.
2
“Mobile Reshapes the Future,” MediaPost magazine, September 28, 2012, http://www.mediapost
.com/publications/article/184107/mobile-reshapes-the-future.html#axzz2HJaRxoxS.
3
The IBDs mentioned are clients of National Financial, and the RIA firms are clients of Fidelity
Institutional Wealth Services. Their experiences may not be representative of your experience.
4
“Pew Internet: Mobile,” Pew Internet, January 31, 2013, http://pewinternet.org/
Commentary/2012/February/Pew-Internet-Mobile.aspx.
Mobile usage explodes
Figure 1:
WHICH SMARTPHONE do you use for business?*
Apple® began to transform the mobile market back
in 2008 when it unveiled its iPhone® 3G. Today, given
the vast number of multimedia devices and mobile
apps that are available, millions of users have turned
to smartphones and tablets. As of December 2012,
85% of American adults had a cell phone, 45% had a
smartphone, and 31% started 2013 owning a tablet.4
The rate of adoption has been even higher with
financial advisors, according to the 2012 Financial
Planning Tech Survey,5 with 80% of respondents
owning a smartphone and 50% owning a tablet. Our
interviewees confirmed these high usage rates at their
firms. “When we held our national event three years
ago, very few advisors had mobile devices like an
iPad®,” recalls David C. Knoch, president and COO at
1st Global. “Two years ago, there may have been a 30%
adoption rate. This past year it was 95%. It’s just the
way of doing business now and instead of handing out
binders of information at our conferences, we simply
provide access to a mobile app.” The RIA firms we
spoke with agree — ​­the use of mobile is taking off.
Our interviewees at both IBDs and RIA firms have a
“bring your own device” (BYOD) policy in place. “We
let our reps get their own devices,” says Alan McAulay,
senior vice president of information technology at
Williams Financial Group. “They pay for the devices,
but if they need help setting them up, we provide
assistance.” As shown in Figures 1 and 2, the iPhone
and iPad are the top choice for most advisors.6
While Apple dominates, especially with independent
RIAs,5 the market is moving quickly. Looking down
the road, hybrid devices that combine the performance
of a laptop with tablet-like features may change the
landscape. “While not popular at the moment with
advisors, I have them on my radar screen,” says Bill
Winterberg, a technology consultant with FPPad.com.
“There is appeal to having a fully functioning laptop
that looks and acts like an iPad.”
iPhone
46%
AndroidTM†
29%
None
20%
BlackBerry ®
13%
Windows Mobile‡
2%
Other
1%
PalmTM
0%
*2012 Financial Planning Tech Survey, Financial Planning magazine.
Android is a trademark of Google Inc.
†
Microsoft and Windows are either registered trademarks or
trademarks of Microsoft Corporation in the United States and/or
other countries.
‡
Figure 2:
Among tablet owners, which tablet do you use?*
iPad
80%
Android
15%
Windows Tablet
7%
Other
3%
*2012 Financial Planning Tech Survey, Financial Planning magazine.
Doreen Griffith, executive vice president and chief
information officer at Securities America, feels there
could be other changes on the horizon with Windows 8.
“Imagine a world of Windows sites where you can
go from your PC to your tablet to your phone and
not have to worry if your Word document has all the
proper formatting,” she says.
Advisors show growing interest
in new apps
According to a 2011 study by Aite Group,7 when
advisors are working remotely they spend 59%
of their time managing existing clients, 37%
prospecting for new clients, and 4% on other
5
“Financial Planning 2012 Tech Survey,” Financial Planning magazine, December 1, 2012, http://www.financial-planning.com/fp_issues/42_12/
technology-survey-financial-planners-2012-2682068-1.html?zkPrintable=1&nopagination=1.
6
This is based on a survey with the number of responses being the same as major national surveys, but with accuracy far superior at +/–2.7%.
7
“Efficiency in Wealth Management: Mobile at the Gates,” Aite Group, October 2011.
2
activities. Given this, a broad set of business
applications are needed to help them work efficiently
off site. When Aite asked advisors what mobile
capabilities would be of interest, the number-one
choice was a customer relationship management
(CRM) system (Figure 3). Tied for second choice were
a broker workstation and an advisor dashboard to
look at a book of business and receive alerts. More
than half of respondents were also interested in
market data and news, financial planning tools, and
account aggregation capabilities.
While our interviewees feel mobile technology is
still at an early stage in the financial advisor arena,
great strides have been made. Just two years after
this Aite survey was completed, many of the mobile
capabilities mentioned are available, and advisors are
reaping the benefits — ​­from creating efficiencies in
their daily workflow to staying connected to clients
and addressing their needs from any location.
“We’re looking at what’s pertinent to conduct
business on the go and are making sure mobile
capabilities are in place.”
– Chris Maryanopolis, President,
Signator Investors, Inc.
Mobile empowers advisors and
engages clients
Our interviewees discussed some of the major benefits
they are seeing with the use of mobile devices and apps:
Increased flexibility for advisors — ​­New mobile
capabilities are being released daily that free advisors
from an office environment and enable them to perform
many functions from any location they choose — ​­and
at virtually any time of the day.8 “Our advisors say
they may be off site, but it doesn’t mean they can’t take
care of business,” observes Griffith. In 2011, Securities
America released an application that gave their advisors
mobile access to their business enterprise systems using
smartphone or tablet technology, and more mobile
functionality has been added since then. This includes
8
Figure 3: Desire for mobile access
Percentage of Financial Advisors Interested in Having
Mobile Access to Specific Business Applications (N = 402)
Customer relationship management (CRM)
58%
Broker workstation
55%
Advisor dashboard (book overview, alerts, etc.)
55%
Research system delivering market data and news
54%
52%
Financial planning
Account aggregation (i.e., direct funds and
annuities, checking, discount brokerage, 401(k))
51%
Proposal generation
49%
Trade blotter
48%
Portfolio management system
(including portfolio rebalancing)
48%
47%
Portfolio construction and analytics
0
10
20
30
40
50
60
Source: Aite Group survey of 402 financial advisors, March 2011.
a phone app that enables advisors to operate CRM
programs and apprise clients about their accounts. “We
feel the effective use of mobile technology will grow and
retain business for our advisors,” she added.
“We have heard many success stories from
our offices that use mobile devices to conduct
business, work with prospects, and offer the
highest possible level of service to their clients.”
– Doreen Griffith, Executive Vice President and
Chief Information Officer, Securities America
Enhanced productivity — ​­Advisors are now able to
handle many tasks immediately rather than waiting
to go into the office. Efficiencies come in other
forms as well. “I use a cloud-based email program,”
says Thomas Hart, president at Hart Investment
Management. “When I put a meeting into one of
my devices, it automatically uploads it to all three of
the Apple products I use — ​­a small thing, but very
convenient. In addition, when I meet with a client at
their home or office, I can easily open all their relevant
information on my iPad without ever needing to print
hard copies — ​­again, a real timesaver. After discussing
a plan with my client, if their printer is configured
properly, I can also air print information directly
from my iPad to their machine. All these individual
capabilities have a big impact in the aggregate.”
System availability and response times may be subject to the mobile phone network being used and to market conditions.
3
“Apps that provide access to client information
and help advisors get closer to their investors
are being adopted today.”
– David C. Knoch, President & COO, 1st Global
Like others, Signator Investors continues to look for new
ways to enhance productivity with mobile technology.
“We do a lot of fact finding on our clients when we first
meet with them,” notes Chris Maryanopolis, president
of the firm. “At the moment it is paper based and pretty
arduous. We will be building an app that a rep can
give to his or her client to prefill some of the basic
data. The rep can then have a discussion with the
client to complete the more detailed areas. This will
really streamline the process and the data can go
anywhere the advisor chooses, like into a CRM system
or financial planning software.”
Better collaboration with clients — ​­Walking through
material on a tablet with touch-screen capabilities can
help draw clients into the discussion and can make
the experience more interesting and interactive. “We
have developed a retirement planning tool with an iPad
app,” explains Maryanopolis. “It enables an advisor to
really engage their clients and show different scenarios
in real time that can help them meet their long-term
financial and lifestyle goals. In addition, being able to
look at accounts and make trades on the spot creates a
much more dynamic meeting.”
Always on top of market developments — ​­The ability to
stay on top of market activity and make trades on the
go can help ensure that opportunities aren’t missed. “I
travel a great deal because most of my clients are out of
state,” says Robert Torba, vice president of investments
at Avant-Garde Advisors. “Staying on top of the market
and trading with my mobile device is crucial for me.”
He can access client account balances, holdings, and
transaction activity and place domestic equity, ETF,
and mutual fund orders. “I also do some research on
my mobile device,” he adds, “and this capability is
getting better every day.”
9
Superior client service — ​­Clients can really benefit
from an advisor’s ability to respond quickly to
different requests using their mobile devices.
“I work from Florida part of the time,” says
Mark Sheptoff, managing member at Mark Sheptoff
Financial Planning. “With my iPhone, iPad, access
to the functionality available within the Fidelity
WealthCentral® app, and a capability that enables
me to tap into my desktop computer remotely, I am
fully functional and can respond to client requests
as they come in. Even though I’m off site, I think my
level of service is even greater as we can stay in contact
with clients continuously in today’s mobile world.”
An enhanced image — ​­The use of smartphones
and tablets can demonstrate to clients that you can
embrace new innovations to help serve them well.
“I think this is especially important for younger
clients,” observes Sheptoff. “They want to know
you are on top of things and can deal with them on
their level.” A recent Fidelity study 9 confirmed this.
Looking at what creates a “valued advisor” in the eyes
of those investors surveyed, technology was a key
component — ​­especially for Gen X/Y investors 21 to
47 years old. A full 81% of this segment who worked
with a valued advisor said technology helped them
collaborate more effectively.
A secure environment — ​­With data in the cloud,
confidential information can be reviewed without
being downloaded to a device — ​­important should
a device be lost or stolen. Securities America has
encouraged a paperless office for many years. Now
using a mobile app, any images scanned by the
home office or uploaded by advisors can be securely
retrieved on mobile devices from almost anywhere.
“I believe extending these paperless options through
mobile devices increases efficiency and provides
on-demand access,” says Griffith. “A big component
of the decision for this mobile solution was the fact
that no data is transferred directly onto the device, so
we have confidence that client data will not be at risk
through use of the application.”
“Proving Your Worth: Uncovering the Traits of a Valued Advisor,” Fidelity Investments, December 2012. Findings were based on two surveys:
(1) The 2012 Fidelity® Millionaire Outlook that was fielded through an online survey during the period of March 15–29, 2012. Participants
included 1,520 financial decision makers, including 1,020 millionaire households; and (2) The 2012 Fidelity® Broker and Advisor Sentiment Index
that was fielded through an online survey during the same period. Participants included 1,207 advisors from across multiple firm types who work
primarily with individual investors and manage a minimum of $10M in individual or household investable assets. Both studies were conducted by
Bellomy Research, an independent third-party research firm not affiliated with Fidelity Investments. The data reflect a margin of error of +/–3%.
4
A business contingency plan — ​­We’ve seen many
storms and power outages over the past year. “If
something happens to our building, I have my
iPad and a range of functionality from the Fidelity
Streetscape® mobile app, so I can go to another location
and continue to do business,” says Maryanopolis.
A competitive advantage — ​­According to a study by
Aite Group,10 65% of advisors said technology was
“important” or “very important” when deciding to work
with a firm. “Mobile is the way the world is going and
it’s important to show you are keeping up on the tech
front to attract potential new reps,” notes McAulay. “Of
course, it depends on the type of firm you are recruiting.
Traditional brokers may not care as much because they
do a lot of work at their desk, but a financial planner
may be much more excited by the possibilities.”
“Our business spans traditional transactional
stockbrokers to full-fledged financial planners.
Today there are mobile capabilities available
for each business model.”
– Alan McAulay, Senior Vice President of
Information Technology, Williams Financial
The future is now
Without question, mobile is one of the fastest
evolving sectors in the technology world and we are
witnessing another phenomenal change in how we
work, communicate, and collaborate. We now hear
of even faster data speeds, a range of new apps being
developed, and mobile devices that know where
you are and what you’re doing. It is clear that home
offices, advisory firms, and advisors will need to keep
a close watch on the developments coming to market
to benefit from the many advantages that mobile
technology has to offer for their businesses and for
the client experience.
Where do we go from here?
Things are moving fast and our interviewees see potential
changes on the horizon. “As we look to the future, I see
more things becoming mobile, but not being a complete
replica of the Web,” observes Maryanopolis. “I may not
get all the functionality on a mobile device that I currently
have through a Web site, but I may get things I never had
before — ​­or even imagined being possible. One example
is remote deposit of a check where you take a picture,
deposit it, and shred it.” Many of the respondents to
a recent survey by Bill.com11 said the ability to process
mobile transactions like this is a requirement in today’s
world in order to help increase efficiency, effectiveness,
and competitiveness.
Integration is another issue — ​­just as relevant for mobile
as it is for desktop applications, says McAulay. “You need
to be able to do complete tasks from a mobile device for
it to really work. It doesn’t really help if you can do only
bits and pieces. Our various service providers have all
adopted that philosophy. I think the next level of growth
will be in the way mobile applications integrate with each
other to increase efficiency.”
“I don’t know what the various manufacturers have in
store as far as advances are concerned,” says Griffith,
“and whether or not we will ever get to a browser type
of app — ​­where you don’t have to close an app to
get to another one. I would hope we could see some
improvement there sooner rather than later.”
“We expect to see a lot of innovation continue in the
smartphone and tablet space,” notes Hadley Stern, vice
president at Fidelity Center for Applied Technology.12
“This will include more device-to-device interaction,
like iPhone-to-iPad sharing of screens and actions. At
the same time, we expect to see other devices coming
along in the next couple of years. For example, wearable
computing, like glasses and watch-like devices that
can deliver alerts and notifications. While this may
seem a little out there, we are already working on this
and coming up with use cases and applications for
financial services.”
“Efficiency in Wealth Management: Mobile at the Gates,” Aite Group, October 2011.
“Finance Professionals are Embracing Mobile Cash Flow Management,” CPA Practice Advisor, April 3, 2013, http://www.cpapracticeadvisor.com/
news/10890906/finance-professionals-are-embracing-mobile-cash-flow-management-finds-billcom-survey.
12
Fidelity Center for Applied Technology develops innovative ideas and products for a variety of affiliated Fidelity Investment companies
and beyond.
10
11
5
Considerations when going mobile
If you are ready to embrace a mobile strategy, there
are a number of things you may want to consider.
Issues for Home Offices and Advisory Firms
the need for advisors to send documents through the
mail or have clients physically come into their office to
sign paperwork.
Protect your devices — ​­“While information is cloud
based and there is not a lot of data on the device
Think about a mobile CRM platform — ​­A CRM
itself, advisors still need to make sure the device is
system is the hub of an advisor’s practice, providing
secure,” says Knoch. At a minimum, you may want to
a centralized repository for client, prospect, and
password protect mobile devices in case they are lost
partner data. Being able to access this information
or stolen. Some devices also allow you to set a unique
from any location is central to a robust mobile
picture on the lock screen, along with contact details,
initiative. “We are redoing our entire CRM
so it can be returned if found by an honest person.
infrastructure,” explains Knoch. “Once that is
In addition, there are a growing number of mobile
completed, it becomes foundational and will enable
device management (MDM) solutions available
us to put that data at the fingertips of our advisors
for assistance in securing and managing disparate
through a variety of mobile capabilities.”
devices that may be used, according to Knoch. They
Take steps to go paperless — ​­It takes an investment
of time and money to create a paperless environment,
according to Winterberg, but many of those who
have done so are able to access the data efficiently
and securely through mobile devices — ​­a significant
typically start by enrolling devices into the MDM
system. After this, an administrator at a home office
or an advisory firm can easily handle a number of
functions, such as changing the configuration profile
on a device or remotely wiping it clean of all data.
advantage. Of course, taking steps to protect
Create a clear policy for mobile usage — ​­Even
information from hackers and ensuring backup will
with BYOD policies, it is advisable to have a clear
be especially important in a paperless office. You may
set of guidelines in place. This might cover the
want to evaluate software programs that are available
level of security required and how the home office
to address computer security issues, electronic file
or advisory firm will support different devices. It
storage, and email security procedures. In addition,
might also cover “bring your own cloud” (BYOC)
you may want to determine if specific documents
issues to educate advisors on the security risks
should also be kept in hardcopy form depending on
of using personal cloud storage services for
the nature of the information they contain.
confidential information.
Look into e-Signature software — ​­Enabling advisors
Go mobile on your Web site — ​­Given the growth
to capture signatures electronically is a major
of mobile devices used by American adults, it may
convenience for advisors and their clients. It eliminates
be important for both home offices and advisors
6
to consider having mobile-friendly Web sites. This
says Torba, “I do deeper research and rebalancing
may involve making an existing site compatible
when I’m back in the office. Some tasks are just better
for viewing with a mobile device, or developing
suited for working at a desktop computer.”
a completely new mobile version that includes a
brief amount of information on the firm along with
contact details. Another trend is “responsive design,”
whereby sites are developed for an optimal viewing
experience, no matter what device a person is
using — ​­from mobile phones to desktop computers. A
responsive Web design uses “media queries” to figure
out what device is being used and then correctly
Don’t overcomplicate things — ​­There are so many
apps out there, it can be difficult to determine which
ones to use. “I suggest advisors keep it simple,” says
Sheptoff. “They should start with what is being
offered by their clearing firm or custodian, plus a
capability that enables them to access their desktop
computer remotely. In the end, that may be enough.”
sizes to fit the screen. “Adaptive design” is also
Take advantage of the medium — ​­Presentations
emerging that detects the type of device being used
using tablets can have a significant wow factor for
and changes the site’s behavior accordingly, such as
clients and prospects, so be sure to take advantage
enabling swiping between columns when there is a
of capabilities that are available for creating polished
touch capability.
presentations, including transitions and animations.
Offer training — ​­Home offices and larger RIA
Match tech options to different client needs — ​­Many
firms can provide a value-add to their advisors by
clients, especially younger ones, don’t have the
educating them on the possibilities that these devices
time for an in-person meeting. They may prefer a
offer, and being very clear about the practices that are
videoconferencing session of some kind, and there
permitted and acceptable and the ones that should be
are many options on this front. “We’re beginning to
avoided. “At the outset, I also think it is important for
see a lot more of our advisors using online mobile
advisors to determine why they want to go mobile — ​
collaboration tools so they have “remote face time”
­is it really to help improve efficiency and push the
with clients, making sure their presence is more
business forward, or is it more for optics?” advises
prevalent,” observes Griffith.
McAulay. “If they don’t know what they are trying to
accomplish, it’s difficult to help them determine what
route to take.”
Issues for Advisors
Look at what’s best suited for mobile — ​­Don’t try to
Get ready for mobile marketing — ​­Adding video
marketing, for example, may help attract investors
looking for a more technology-rich experience. Video
marketing for financial advisors has been gaining
popularity over the last several years and shows no
sign of plateauing anytime soon.13
do everything on a mobile device. “While I actively
trade and do some research on my mobile device,”
13
“2013 Marketing Trends for Financial Advisors,” Wealth Management Marketing, January 7, 2013.
7
Interviewees
Independent Broker-Dealers
Registered Investment Advisors
Doreen Griffith, Executive Vice President and
Thomas Hart, President, Hart Investment
Chief Information Officer, Securities America
Management, Inc.
David C. Knoch, President and COO, 1st Global
Mark Sheptoff, Managing Member, Mark Sheptoff
Chris Maryanopolis, President, Signator
Investors, Inc.
Alan McAulay, Senior Vice President of
Information Technology, Williams
Financial Group
Financial Planning
Robert Torba, Vice President of Investments,
Avant-Garde Advisors LLC
Technology Consultant
Bill Winterberg, Columnist and Speaker, FPPad.com
Hadley Stern, Vice President, Fidelity Center for
Applied Technology
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is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider.
Fidelity Investments does not provide advice of any kind. You should conduct your own analysis, review, and due diligence based on your
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