This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Envestnet | Tamarac White Paper: Technology Integration Leads To 20% More Annual Income For Advisors

CHICAGO, June 18, 2013 /PRNewswire/ --  Envestnet | Tamarac, part of Envestnet, Inc. (NYSE: ENV), a leading provider of integrated web-based portfolio and client management software for independent advisors and wealth managers, has released a white paper showing that financial advisors at independent RIA practices with some degree of technology integration earn approximately 20 percent more in annual income than their counterparts at independent RIA practices with no technology integration.

(Logo: http://photos.prnewswire.com/prnh/20110321/NY68085LOGO)

The white paper, entitled RIA Productivity and Profitability: Integration Pays, was produced by Aite Group, an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. The study was undertaken to examine the impact of technology integration on the profitability of independent RIA practices, and is based on the results of an online survey of 201 primary financial advisors at independent RIAs conducted by Aite Group in March 2012.

"Since independent RIAs are small shops that have been built from the ground up, there is often a tendency to source technology components from vendors or acquire them from custodians, which often leads to systems that do not integrate well with one another," said Stuart DePina, Group President, Envestnet | Tamarac. "But advisors that use an integrated solution experience more efficient and profitable practices."

The study found that RIAs with some level of integration have almost twice the amount of assets under management (AUM) as RIAs with the same size staff but with no integration — approximately $90 million more in client assets on average. Practices with integrated technology also produce an average of $100,000 more in annual revenue than their counterparts with no integration. In addition, the study revealed that the staffs of firms with at least some technology integration spend 32 percent less time on operation processes than the staffs at firms with no integration at all, freeing up approximately 40 weekdays each year for every employee to engage in more revenue-generating activities, including client management and prospecting.

Despite the obvious benefits of technology integration, only 7 percent of advisors surveyed stated that their firms' business applications have deep and meaningful cross-product functionality. More than 30 percent, on the other hand, said their firms have no technology integration. This study's findings prove that these advisors can increase their firms' profitability by adopting integrated technology platforms.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs