When it comes to technology, planners at PFSL Investments Canada Ltd. once again place their firm atop all the competitors. The 2005 Planning Report Card scored their firm 9.1 out of 10 for its back office, 9.0 for front office and 8.9 for advisor Web tools.
“Our strongest piece of technology is our intranet,” says Jeff Dumanski, PFSL’s executive vice president of marketing, noting everything from training to financial analysis is done through the intranet. “That’s our main source of information.”
The firm wasn’t rated for its client Web site because it doesn’t have one. As one PFSL advisor says, “Most clients don’t worry about the PFSL Web site; they are more interested in fund Web sites.”
The firm’s closest challenge came from Worldsource Financial Management Inc.,
which scored a respectable 8.8 for its back-office technology and 8.5 for front office. It scored a 7.8 for advisor Web tools and a 7.5 for client Web tools, the highest ranking in the latter category.
The only other firms to reach the eight-point barrier in technology were FundEx Investments Inc. and Laurentian Financial Services.
Bringing up the rear were AEGON Dealer Services Canada Inc., Assante Corp. and Partners in Planning Financial Services Ltd., all of which failed to crack seven points in any of the four categories.
The survey also shows that most firms have a long way to go when it comes to Web tools. They had some of the lowest overall scores in the survey, especially in the area of client Web tools.
Here are the notable findings:
> Aegon: This is the first year of scoring for mutual fund dealership AEGON, and it did poorly. One Prairies-based advisor notes:
“There were some technological problems”; another says it’s “not setting up the dealer properly” and lacks software.
> Assante: The firm saw its scoring for client Web tools plummet 1.8 points to 4.2 from 6.0 last year, while its back-office technology took a big step forward, jumping 1.1 points to 6.2. A number of advisors noted that Assante’s technology is improving.
Joseph Canavan, chairman and CEO of Assante, says that the firm continues to invest in technology and is making strides in integration. “When we bought the company, we had nine back-office systems,” he says.
The firm has since converted five and has two more to do this year. Spending on technology continues.
> Berkshire group: Advisors praised it for its back-office support, although the firm’s scoring in the back office was down by almost one point over last year. It also dropped a bit in its scores for the front office and Web tools for advisors.
> Fundex: Kudos from one Alberta advisor for its back-office support. It improved its front-office technology scores, but saw rankings for Web tools slide. David Vowles, president and CEO of the Markham, Ont.-based firm, says, “We’re certainly investigating a lot of new technology solutions.” The firm plans a new rollout of technology but wouldn’t elaborate. “I don’t want to tip my hands to the competitors,” Vowles says.
> Investors group inc.: The firm’s scores were in line with last year, but advisors’ comments were harsh. One Ontario advisor notes it is “lagging,” while another calls its technology advances “a little slow.” A Prairie advisor cut to the chase, calling the software programs “cumbersome” and noting “functionality is weak.” Another adds: “The upgrades are often useless and create nothing but problems for several weeks.
[It’s] very costly in lost time and productive work hours.”
Kevin Regan, IG’s executive vice president, financial services, in Winnipeg, says the technology is “pretty mature and state of the art” but admits advisor feedback has been “strong.” Most want improvements in the network to make it faster and easier to connect to — which the firm is working on.
It’s also enhancing insurance and financial planning software and has added spam-blocking.
> Investment planning counsel: Its scores rose modestly for front- and back-office technology with advisors expressing some dissatisfaction. Ratings for Web tools dropped a tad — but advisors note that few clients use computers, so Web tools are not important.
Chris Reynolds, president of IPC in Mississauga, Ont., says the firm has enhanced IPC Connect, it’s Web interface for advisors. Advisors can now set up a personal financial Web site for each client from which clients can obtain their statements and update their net worth. It has resulted in a 400% increase in usage among clients. The goal is to make the Web site a document-management centre. This year IPC will add account aggregation so clients can include information from other financial services firms.