The platform gathers the necessary data from the prospect, provides a client questionnaire customized by the advisor, generates an investment policy statement based on the responses, scores the questionnaire based upon the advisor’s specifications and puts the client’s investments into a model based upon the scoring. The platform generates all documents, which the client can sign electronically, using Folio Institutional’s proprietary electronic authorization process. The advisor then monitors and manages the investments (or outsources the management to third-party Folio managers) and the client can monitor everything through the client portal.
In the first iteration, Advisor Connexion is missing a few things to compete directly with Mint, Personal Capital and the like. First, it needs account aggregation, which Vigrass says is coming. It also would benefit from some built-in communication tools like a video conferencing window. Most important, it requires integration with financial planning software, CRM software and other tools that advisors use in the normal course of business. If Advisor Connexion can deliver on its promise, it could be a game-changer. It will provide a new platform for advisors to manage their existing clients, but more importantly, it will allow them to cost-effectively manage smaller accounts they cannot profitably manage today.
Trust Company of America (TCA)
Trust Company of America is yet another custodian that is doing some innovative work. For example, like a few other custodians, they are creating mobile apps for Windows 8, but to our knowledge, they are the only custodian developing apps for the Surface RT (TCA’s apps should be available in the Windows Store by the time you read this). According to Trust Company of America’s CTO, the TCA platform architecture is flexible enough to accommodate any type of device.
Mobile is a big theme for TCA. Their mobile application, Liberty, is available on the Web and as a downloadable app. Currently, it provides up-to-date account information and reports, but it is being expanded to include trading and rebalancing at the account level. The plan, according to TCA, is to port all of the functionality of its advisor workstation onto Liberty. They will also be adding new functionality, such as the streamlining of workflows, automated mobile account openings with e-signatures powered by DocuSign, consolidated views of all accounts and more.
TCA makes a private labeled version of the Liberty app available to all TCA advisors so they can provide their clients with an app that has their own firm’s brand. TCA customized the app at no charge to the advisor and registers it with the appropriate app store. To date, 50% of TCA’s advisors have availed themselves of this valuable service.
In addition, TCA has its own mobile production studio. It will go out to an advisor’s office and produce a professional video for the advisor to use in marketing efforts. There is no additional charge for this service.
TCA offers technology consulting services to their clients. They can help advisors with Web site design and search engine optimization. They can also help with advisors’ other technology needs. In addition, they offer a practice management service that helps advisors maximize the efficiencies of their workflows. This service is provided by the same staff that has reconfigured TCA’s own processes. In the case of client onboarding, the process improvements TCA implemented resulted in a 66% increase in efficiency.
TCA says it has some additional major projects it is working on, but that it is premature to discuss them at this point. The firm expects to make some announcements before the end of the first quarter, with rollout before year’s end.
With all of the innovation going on at the custodian level, there’s never been a broader array of options for advisors to choose from. We’ll cover some additional custodial options in a future issue.