JERSEY CITY, N.J., Feb. 6, 2014 /PRNewswire/ -- Pershing LLC, a BNY Mellon company, today released a new white paper entitled, " Closing the e-Delivery Gap: The 2013 e-Delivery Survey," which uncovered a significant gap between financial executives who expect investors to adopt e-delivery and the actual number of investors who enroll in such services.
The gap is significant: 53.1% of respondents expect investors to enroll in at least one type of e-delivery communication, but only about 20% of investors have chosen to adopt these methods. The survey identified various reasons for investors wanting e-delivery, including: easier record keeping (64.3%), reluctance to pay for paper-based documents (50%), a more secure environment (42.9%), and environmentally conscious attitude (21.4%). However, their reluctance to enroll persists, due in part to a lack of knowledge of the technology, security concerns, and an unwillingness to change "paper-centric" behaviors. Yet, the fact that many investors operate several investment accounts from various firms is the main reason more investors don't move to e-delivery. Most firms don't operate on the same software or with the same technology integrations, meaning investors have to master different user interfaces, forms and document delivery processes.
"Understanding the e-delivery gap boils down to the fact that investors have multiple accounts which are all supported by different technology ecosystems," said Ram Nagappan, chief information officer of Pershing. "If e-delivery is to be more widely adopted by investors, it's crucial for firms to embrace integrated technologies so that the industry as a whole can enhance the customer experience for investors. Pershing is continually working with clients on how to engage in the adoption dialogue and offer turnkey solutions to incorporate it into their marketing strategy so that they can educate investors on the benefits of an e-delivery experience."