Technology remains a sore spot

However, based on the results of this year’s Dealers’ Report Card, the advisors surveyed still appear to be less than completely satisfied with their firms’ tech offerings, giving the “technology tools and advisor desktop” category an overall average performance rating of 7.8 – well below the overall average importance rating of 8.7.

The good news, though, is that the category’s overall performance rating has improved by 0.2 of a point from last year’s Report Card; furthermore, four dealer firms saw significant improvements – defined as an increase of half a point or more – in how their advisors rated them on technology. In contrast, no firm saw its rating drop by that same margin.

Although advisors at some firms say they still struggle with what they regard as outdated technology, which makes their work more difficult, there was general acknowledgement that firms are taking steps to improve technology platforms – and the recurring theme is the integration of web-based and mobile capabilities with traditional desktop tools.

New web-based initiatives

For example, advisors with Mississauga, Ont.-based PFSL Investments Canada Ltd. praised their firm for its commitment to investing in technology and providing its advisors with the latest tools and systems.

Part of that satisfaction stems from PFSL’s introduction of several new web-based initiatives in the past year, including an electronic insurance application and a web-based financial needs analysis for clients, says Jeff Dumanski, the firm’s president and chief marketing officer: “Advisors don’t have to use it, but we are bringing it in knowing there’s a segment of our advisors who are embracing it.”

Meanwhile, Investment Planning Counsel (IPC), also based in Mississauga, was among the firms receiving a significantly higher technology rating this year. Although IPC advisors continue to have issues with the firm’s technology offering – with some griping that it is not user-friendly – they nevertheless have acknowledged that the firm is taking positive steps.

“We have [the tools],” says an IPC advisor in Ontario. “We just need to learn how to use them.”

This year, IPC will continue to build out and refine its IPC Advisor Office suite of integrated tech tools, with the focus on further integration of the various platforms, says the firm’s president and CEO, Chris Reynolds: “We’re looking at the greater use of web technology, particularly in communication with clients.”

Keeping advisors equipped with the most up-to-date technology is always a difficult process, Reynolds says, but it’s vital in allowing reps to run their businesses effectively: “Technology [upgrades] always take twice as long to roll out and are twice as expensive as you think they’ll be.”

Richmond Hill, Ont.-based Global Maxfin Investments Inc. also saw a significant rise in its technology rating. However, in general, Global Maxfin advisors remain dissatisfied with the firm’s desktop technology, saying that it’s out of date and not as functional as it could be.

“They need to make improvements to the software,” says a Global Maxfin advisor in B.C.

The firm is taking steps to broaden and improve its technology offering. This year, Global Maxfin intends to introduce a “client on-boarding” system to help advisors process new client accounts. The new software, which will integrate with the current client relationship-management (CRM) system, should be ready for launch in the second half of 2012, says Bruce Day, Global Maxfin’s president.

“Advisors will be able to use a tablet at the point of sale,” he says. “They’ll be able to input information with the client without having to carry any paper or forms.”

Another firm that saw its tech rating rise is Calgary-based Portfolio Strategies Corp., whose advisors gave it at 7.3 score, up from 6.9 last year. Despite the improvement, though, the firm remains among the lowest-rated firms in this category.

Advisor complaints focused on the advisor desktop, which some described as outdated and providing less than optimal functionality.

“The firm has been very slow to update its systems,” says a Portfolio Strategies advisor on the Prairies.

The firm is taking steps to improve its CRM system and its financial planning software, with changes likely coming in the autumn. Advisors seem to appreciate the initiative. However, the firm will continue to try to find a balance between keeping fees down – the firm charges a modest $40 a month for technology – and making investments in technology.

“We’ve always been sensitive [to this],” says Mark Kent, president and CEO of Portfolio Strategies. “Why have a $150 technology fee per month when advisors don’t always use the tools?”

Improvements coming

Advisors with Toronto-based Assante Wealth Management (Canada) Ltd. gave their dealer the lowest technology rating among the 12 firms in the survey – 5.8. In large part, Assante advisors described the firm’s technology as outdated.

“Given today’s technology,” says an Assante advisor in Alberta, “I’d say they’re lagging behind.”

Furthermore, Assante advisors say that the firm’s failure to address the issue, despite assurances to do so in the past, has left them frustrated.

“Our [promised] new desktop has been delayed, delayed, delayed,” says an Assante advisor in Ontario. “It has cost us a lot.”

In response, Assante is working hard to improve the firm’s tech systems. Working with a third-party provider, the firm is testing a new advisor desktop in a pilot program involving 150 advisors; it hopes to roll out the technology to the rest of the advisor network in the second half of this year.

Says Steve Donald, Assante’s president and CEO: “[The pilot has] really helped us focus on what exactly we need to do as we move this out to a broader audience.”

© 2012 Investment Executive. All rights reserved.