Systems chalk up higher marks

2001 PLANNERS’ REPORT CARD
 
Front Office	2001	2000	1999
 	 	 	 
Primerica	8.6	7.4	8.7
Investors Group	8.5	7.8	8.6
Sun Life	8.5	n/a	n/a
TWC Financial	8.0	7.6	8.6
Berkshire	7.9	7.3	n/a
Manulife	7.6	7.0	n/a
CMG Worldsource	7.3	7.3	6.5
FundEX	7.2	n/a	n/a
Money Concepts	7.2	7.0	6.4
Balanced Planning	7.1	7.0	6.1
W.H. Stuart	7.0	6.9	7.6
Regal Capital	6.9	6.3	7.7
Dundee	6.7	6.8	n/a
IPC Financial	6.5	n/a	n/a
Assante	6.4	n/a	n/a

Back Office	2001	2000	1999
FundEX	8.8	n/a	n/a
TWC Financial	8.4	7.7	8.9
Primerica	8.3	7.4	8.0
Berkshire	8.1	6.8	n/a
Dundee	8.1	7.0	n/a
Sun Life	8.1	n/a	n/a
Investors Group	7.9	7.1	8.1
Regal Capital	7.8	6.9	8.2
IPC Financial	7.7	n/a	n/a
Money Concepts	7.6	7.1	6.5
CMG Worldsource	7.3	7.2	7.2
Manulife	7.3	6.8	n/a
W.H. Stuart	7.2	6.5	6.8
Balanced Planning	6.9	7.0	7.5
Assante	6.4	n/a	n/a

SOURCE: INVESTMENT EXECUTIVE RESEARCH

INVESTMENT EXECUTIVE CHART

In the past, the lack of adequate funding and massive learning curves were obstacles on the path to high-tech happiness.

With those out of the way, at least for now, financial planners generally have kinder things to say about their back- and front-office systems.

In the past two years, technology has taken the biggest bashing in the Planners’ Report Card, but this year there is not a single red mark to be found in the entire category. Whether companies are finally making good on their technology promises, or planners are getting over the growing pains, the numbers indicate people are happier with the software and support they receive.

“For the past number of years, everyone was playing catch-up,” says Dan Clarke, vice president of operations at FundEX Investments Inc. in Markham, Ont., the highest-ranked firm in this area. “Technology has always been a big part of the industry, but I think [it was a] learning curve within the back office and also at the representative level. People understand and use it better.”

And with understanding comes more realistic expectations. “They [the back office] make mistakes, but so does everybody,” says an Alberta planner with CMG Worldsource Financial Services Inc.

Even at Winnipeg-based Assante Corp., one of the lowest-ranked firms overall in this year’s Planners’ Report Card, reps are optimistic about the direction in which technology is headed. “There is a new Web site coming that will help us do all kinds of things,” says one Assante planner in Ontario. “I think we’re on the cutting edge.”

“Some people are over the growing pains,” says David Ravenscroft, Assante’s vice president of technology in Toronto. He warns, however, that there are more problems on the horizon — for his company, in particular, as Assante continues to consolidate and for the industry as a whole, as it continues to merge. “Consolidation in the industry is still going to be the big growing pain people will face,” he says. “For the most part, I think the big curve is going to be how to adapt advisor processes to become more Web-centric.”

Allyson Mason, a technology assistant at Sun Life Financial Services of Canada Inc. in London, Ont., agrees. “There are more growing pains to come as technology changes.”

Changes coming at Sun Life include further developments of advisor and customer Web sites.

Because opinions on technology are as changeable as the software they’re based on, wise planners, especially those who want to avoid unwelcome surprises, should keep their eyes on the next learning curve.

“Financial planners tend to keep their heads down and focused, rather than taking a breath and looking at what is heading toward them,” Ravenscroft says.

When it comes to growth, “I think we’ve only just got started,” he adds.

Currently, Assante is looking for off-the-shelf solutions to replace its back office. In the fall, Ravenscroft says, advisors may see fewer tactical changes made on current platforms, while the company starts working on ways to replace its back-office system.

In past years, brokers, advisors and planners have complained that the resources earmarked for technology development were being sucked up by Y2K. While there are no plans for global shutdown on the horizon this year, T+1 and new compliance issues could well be in the black holes that swallow up resources in the future.

“In my opinion, T+1 is going to have an impact across the financial services industry as a whole,” Clarke says. But, he adds, he doesn’t think it will stop the pace of change in other developments for his company.

“I don’t think it can,” he says. “In order to compete, you’re not going to be able to stop developments. You’re going to have to deal with both.”

He says more resources may have to be diverted to deal with the new compliance environment that will be brought on by the creation of the Mutual Fund Dealers Association.

“But our planners and their clients are demanding more technology and more access to information, and we’ve got to be able to meet that demand.”

While some things are changing for the better, planners still rail about other issues, including lack of marketing and technology support, and, occasionally, data entry errors made at head office level.

In some cases, the criticisms are a matter of perspective. “I’ve never been impressed with the back-office system,” says one planner at Manulife Financial Corp.

Meanwhile, another planner at the same company seems to think Manulife has a “good system.”

“I think the biggest issue we have in technology satisfaction levels is getting a level playing field in terms of setting expectations as to exactly what it is that technology can and should deliver,” says Assante’s Ravenscroft.

Most companies rate higher in the 2001 planners’ survey than they did this time last year. The highest-rated companies for front-office technology are: Primerica Financial Services Ltd., up to 8.6 from 7.4 in 2000. Sun Life is rated 8.5, and Investors Group Inc. is up to 8.5 from 7.8 in 2000.

The lowest-rated companies for front-office technology include Dundee Private Investors Inc., down to 6.7 from 6.8 in 2000. IPC Financial Network Inc. is rated 6.5 by its planners, while Assante rates a 6.4, last year’s average of the three firms it consolidated in 2000.

The highest-rated companies for back-office technology are: FundEX, which is rated 8.8 by its planners; TWC Financial Corp., at 8.4 vs 7.7 in 2000; and Primerica, at 8.3 from 7.4 in 2000.

The lowest-rated companies for back-office technology include W.H. Stuart & Associates Inc., up to 7.2 from 6.5 in 2000. Balanced Planning Financial Group is down to 6.9 from 7.0, and Assante is up to 6.4 from its acquisitions’ average of 6.3 last year. IE