Model investment portfolio creation and maintenance is getting a good deal of attention, since 85% of Trade PMR advisors create their own models. Advisors will receive portfolio metrics from FinMason as they build portfolios, and Smartleaf’s overlay and rebalancing capabilities will add powerful new tools for Trade PMR advisors.
The firm has created some excellent work flows for client on-boarding. The forms can be prepopulated with any information already in the system, which minimizes the time staff must spend on data entry. The client portal, with two-factor authentication, serves as the hub. Once new clients sign the original DocuSign signature, they do not need to go through a signing ceremony again. After that, they can go to the client portal to be authenticated.
There, they can add new accounts, initiate transfers, set up periodic deposits, etc. For example, to initiate an account transfer through the ACAT system, clients would log on to the portal, complete the request, provide the log-in credentials for the account being transferred, and that’s it!
Advisors can make a very modern, well-designed portal available whether or not they also want to offer a robo-advisor. Trade PMR has gone to great lengths to incorporate client service requests into its portal so clients can digitally initiate requests that currently require a phone call and thus speed up response times.
The robo-advisor offering uses many of the tools already discussed, including the digital on-boarding and the client portal, but it offers much more. It is really about work flows and a unique client experience. It allows the advisor to set up investment models and map them to risk scores. The advisor can then allow clients and prospects to open accounts and fund them. This can be done by sending the client or prospect a link through e-mail, or by allowing them to access a website. The advisor retains control of the work flow in the administrative portal.
Trade PMR does not set account minimums, which are at the advisor’s discretion. One unique feature of the Trade PMR robo is that it does not automatically assign a model portfolio to the client at the end of the process. Instead, it recommends one based on the mapping the advisor has set up as well as the risk score generated, but the client requests a model and the advisor must approve it. The client may request a model more or less aggressive than the recommended one, but the final decision rests with the advisor.
As part of the on-boarding process, advisor discretion and fee deductions are enabled by default, though the client can override the defaults.
For those who do not care for the EarnWise robo model, or who want a completely white labeled robo solution, Trade PMR partners with AdvisorEngine.
When FinMason is added to EarnWise, advisors using the platform will be able to check every client account or household each night to make sure it is still within the designated risk parameters, and the platform will alert the advisor when the portfolios violate their mandate. It will also provide portfolio metrics to advisors as they construct their model portfolios in near real time.
EarnWise appears to include most of the next generation tools that advisors require to take their businesses to the next level, and when you add in the partner integrations, it really takes Trade PMR’s technology offering to the next level.
Shareholders Service Group (SSG)
SSG takes an entirely different approach than Trade PMR does, but with equally pleasing results. While Trade PMR chooses to build much of its own core platform, SSG relies on third parties as much as it can. The firm uses Pershing for custody and clearing, so it makes use of the NetX360 platform for advisors and the NetXInvestor platform for end users. SSG is also using Jemstep technology to provide digital on-boarding, a client portal, reporting and more, but the firm leaves it up to the advisors to decide what, if any, Jemstep capabilities they want.
For example, an advisor can choose to use it for digital on-boarding and nothing else. They can use Jemstep for asset allocation or not, they can use the Invesco models or not, they can use Jemstep for reporting or not. So, for example, an advisor can use Tamarac for asset allocation and rebalancing, but still use Jemstep on the front end.
As with Trade PMR, if an advisor opens up an account for a client on the SSG platform, it is the same account whether it is a robo account or not. According to SSG President Dan Skiles, “So many competing solutions are a carve-out.” By this he means that the robo accounts get a different master account or are otherwise segregated. In the former case, if a robo client inherits wealth, for example, and wants to move up to a full level service, the experience will be seamless. In the latter case, moving an account from one program to another may be considerably more complicated.
By partnering with Jemstep, SSG can offer advisors and their clients a white labeled robo-advisor and a great end client experience. The product road map calls for adding the Riskalyze Autopilot robo offering to SSG advisors soon. In fact, SSG advisors can already access Autopilot through Riskalyze today, but when an official enterprise agreement is in place, SSG advisors should enjoy a deeper level of integration, and perhaps more advantageous pricing.
SSG recently inked a deal with TradeWarrior to provide another rebalancing option at a lower price point. The firm also offers TRX for trading and rebalancing. For performance reporting, Orion, Black Diamond, Morningstar and Tamarac are available. For financial planning, SSG integrates with eMoney and MoneyGuidePro. In another unique deal, Advicent is offering a free trial through September 15 to SSG advisors at no charge. This allows its advisors to use NaviPlan and Narrator Clients absolutely free throughout the summer. In the case of all these integrations, SSG works to ensure deep integration and a uniform look and feel throughout the platform.
As you can see, these three firms are each taking a different approach to providing advisors with the most modern technology tools, but in every case the results are impressive. RBC is essentially using CircleBlack as the chassis for its advisor workstation offering. Trade PMR is focusing primarily on building its own technology and strategically supplementing it with that of best-of-breed third parties, while SSG is leveraging as much third-party technology as it can and devoting its own resources to providing a seamless technology interface that allows its advisors to choose the solutions that work best for their businesses.
All three of the firms deserve more attention than they are getting.