Description
Compared with the customer relationship management (CRM) solutions of the 1990s and early 2000s available worldwide, today's Web-accessible, service-oriented CRM solutions enable firms to integrate more of their client data (e.g., financial data and documents), access this information from more devices/locations, share this information with more colleagues and divisions, and use this information to manage and automate critical practice activities beyond sales and services.
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CRM for Wealth Management:
Approaching Total Practice Management
APRIL 2011
Sophie Schmitt
CRM for Wealth Management: Approaching Total Practice Management April 2011
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2
TABLE OF CONTENTS
IMPACT POINTS .............................................................................................................................................. 5
INTRODUCTION .............................................................................................................................................. 6
OVERVIEW OF VENDORS........................................................................................................................... 8
CRM MARKET OVERVIEW ............................................................................................................................... 9
NORTH AMERICAN INVESTMENT DRIVERS ............................................................................................. 11
NORTH AMERICAN SPENDING FORECAST .............................................................................................. 12
WEALTH MANAGEMENT CAPABILITIES AND FLEXIBILITY ............................................................................. 15
WEALTH MANAGEMENT CAPABILITIES................................................................................................... 15
FLEXIBILITY .............................................................................................................................................. 16
CUSTOMIZATION AND APPLICATION DEVELOPMENT ...................................................................... 16
PARTNERSHIPS .................................................................................................................................. 18
HOSTED VERUS ON-PREMISE ............................................................................................................ 19
DETAILED VENDOR COMPARISON ................................................................................................................ 21
CENTRALIZING CLIENT INFORMATION .................................................................................................... 21
FINANCIAL DATA INTEGRATION ........................................................................................................ 21
MICROSOFT OUTLOOK INTEGRATION ............................................................................................... 23
DOCUMENTS ..................................................................................................................................... 25
INFORMATION ANALYSIS & SEARCH ....................................................................................................... 26
CLIENT RELATIONSHIP MODELING .................................................................................................... 26
ADVISOR DASHBOARD ...................................................................................................................... 28
SEARCH .............................................................................................................................................. 30
IMPLEMENTING SALES & SERVICE BEST PRACTICES ............................................................................... 30
PIPELINE MANAGEMENT ................................................................................................................... 30
CLIENT SEGMENTATION .................................................................................................................... 30
SERVICE MANAGEMENT .................................................................................................................... 31
MARKETING & COMMUNICATIONS .................................................................................................. 32
WORKFLOW TOOLS ................................................................................................................................. 33
CROSS-APPLICATION WORKFLOW: FINANCIAL PLANNING ..................................................................... 35
ADOPTION OF EMERGING TECHNOLOGIES ............................................................................................ 36
CRM ON MOBILE DEVICES ................................................................................................................. 36
SOCIAL MEDIA ADOPTION ................................................................................................................. 37
PRICING ................................................................................................................................................... 37
VENDOR SELECTION ..................................................................................................................................... 39
VENDOR PROFILES ........................................................................................................................................ 41
CDC SOFTWARE....................................................................................................................................... 41
JUNXURE ................................................................................................................................................. 42
MICROSOFT ............................................................................................................................................. 44
NEXJ ....................................................................................................................................................... 46
CRM for Wealth Management: Approaching Total Practice Management April 2011
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PARETO PLATFORM ................................................................................................................................ 47
REDTAIL TECHNOLOGY CRM ................................................................................................................... 48
SALESFORCE.COM ................................................................................................................................... 50
CONCLUSIONS .............................................................................................................................................. 52
RELATED AITE GROUP RESEARCH ................................................................................................................. 53
ABOUT AITE GROUP...................................................................................................................................... 54
AUTHOR INFORMATION ......................................................................................................................... 54
CONTACT ................................................................................................................................................. 54
LI ST OF FIGURES
FIGURE 1: CRM SOLUTION AVAILABILITY BY WEALTH MANAGEMENT INDUSTRY SUB-SEGMENT ................ 6
FIGURE 2: CRM SPENDING APPETITE?ADVISOR PERSPECTIVE ..................................................................... 7
FIGURE 3: CRM ADOPTION VS. ADVISOR INCLINATION TO INVEST IN SOLUTION ......................................... 7
FIGURE 4: GEOGRAPHIC PRESENCE BASED ON CUSTOMER PERCENTAGES ................................................. 12
FIGURE 5: NORTH AMERICAN WEALTH MANAGEMENT CRM TECHNOLOGY SPENDING ............................. 12
FIGURE 6: SOLUTION COMPARISON, OUT-OF-THE-BOX WEALTH MANAGEMENT CAPABILITIES ................ 15
FIGURE 7: WEALTH MANAGEMENT CUSTOMERS BY INDUSTRY SUB-SEGMENT ......................................... 16
FIGURE 8: HOSTED VS. ON-PREMISE DEPLOYMENTS (AS OF YEAR-END 2010) ............................................ 19
FIGURE 9: FLEXIBILITY VS. WEALTH MANAGEMENT CAPABILITY MATRIX ................................................... 20
FIGURE 10: ADVANCED APPLICATIONS OF CRM SOLUTIONS IN WEALTH MANAGEMENT .......................... 21
FIGURE 11: NEXJ FINANCIAL ACCOUNTS SCREEN ......................................................................................... 23
FIGURE 12: SCREENSHOT OF PIVOTAL CRM CONTACT SCREEN AVAILABLE THROUGH MICROSOFT
OUTLOOK ............................................................................................................................................ 25
FIGURE 13: NEXJ AND PIVOTAL CRM RELATIONSHIPS TREES ....................................................................... 27
FIGURE 14: SALESFORCE.COM DASHBOARD DEVELOPMENT....................................................................... 28
FIGURE 15: REDTAIL CRM DASHBOARD........................................................................................................ 29
FIGURE 16: JUNXURE ACTIONS DASHBOARD ............................................................................................... 29
FIGURE 17: SCREENSHOT OF PARETO PLATFORM’S SERVICE MANAGEMENT TOOLS ................................. 31
FIGURE 18: SCREENSHOT OF PIVOTAL CRM CALL PLAN TEMPLATE ............................................................. 32
FIGURE 19: PARETO PLATFORM WORKFLOW CAPABILITIES ........................................................................ 35
LIST OF TABLES
TABLE A: OVERVIEW OF CRM VENDORS ........................................................................................................ 9
TABLE B: KEY CRM INVESTMENT DRIVERS?VENDOR CUSTOMERS ............................................................. 11
TABLE C: CRM SPENDING AND GROWTH RATE ESTIMATES BY FIRM SIZE?NORTH AMERICA .................... 14
TABLE D: APPLICATION DEVELOPMENT CAPABILITIES ................................................................................. 17
TABLE E: OVERVIEW OF KEY VENDOR PARTNERS AND PARTNER-DRIVEN SALES ........................................ 18
TABLE F: FINANCIAL DATA INTEGRATION CAPABILITIES: OUT-OF-THE-BOX INTEGRATION ......................... 22
CRM for Wealth Management: Approaching Total Practice Management April 2011
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TABLE G: MICROSOFT OUTLOOK EMAIL INTEGRATION CAPABILITIES ......................................................... 24
TABLE H: DOCUMENT MANAGEMENT CAPABILITIES ................................................................................... 26
TABLE I: CLIENT RELATIONSHIP MODELING CAPABILITIES ........................................................................... 27
TABLE J: CLIENT SERVICE MANAGEMENT AUTOMATION (OUT-OF-THE-BOX) ............................................. 31
TABLE K: EMAIL MARKETING CAPABILITIES OUT-OF-THE-BOX..................................................................... 33
TABLE L: MULTI-STEP WORKFLOW AUTOMATION (OUT-OF-THE-BOX FUNCTIONALITY) ............................ 34
TABLE M: INTEGRATION WITH FINANCIAL PLANNING APPLICATIONS ......................................................... 35
TABLE N: MOBILE DEVICES SUPPORTED ....................................................................................................... 36
TABLE O: SOCIAL MEDIA INTEGRATION ........................................................................................................ 37
TABLE P: CRM SOLUTION COST COMPARISONS ........................................................................................... 38
TABLE Q: BEST-IN-CLASS SOLUTIONS ........................................................................................................... 39
CRM for Wealth Management: Approaching Total Practice Management April 2011
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5
I MPACT POINTS
Advisors need to up their game in a post-crisis environment in which clients have
grown more risk-averse and seek more control over their investments, compared to
pre-crisis years. To avoid losing clients, advisors must enhance the level of service
they provide while ensuring their service model is profitable. Advisors need
customer relationship management (CRM) technology more than ever to help them
manage the increased number of client activities in the most efficient and strategic
way.
CRM solutions today have improved compared to 10 years ago. Data is easier to find,
analyze, share, and access from any device. The functionality is easier for end users
to change, which allows firms to establish a stronger fit between process and
enabling technology. In addition, new workflow capabilities provide firms with
significant value, allowing them to manage and monitor all client-related processes
from one application.
With the advent of cloud computing, solutions are now more cost-effective, which
allows small wealth management firms to afford enterprise class CRM technology
Given the confluence of factors driving CRM investments in the wealth management
industry, Aite Group estimates that North American wealth management firms will
grow spending by 8% over the next five years from approximately US$460 million in
2010 to US$620 million in 2014.
The two most important factors for wealth management firms to consider when
selecting a CRM solution are its flexibility and its wealth management capabilities.
Highly malleable solutions are not likely to have the most pre-integrated wealth
management functionality and applications.
In this report, Aite Group profiles seven CRM solutions with differing strengths:
Junxure and Redtail, two solutions designed for small wealth management
firms
Microsoft Dynamics, an industry-agnostic solution that Microsoft wealth
management-focused partners can easily customize
NexJ, a solution built to address the data integration and functionality needs of
large wealth management firms
Pareto Platform, a highly customized version of Microsoft Dynamics that
embeds best practices taught by Pareto’s consulting group
Pivotal CRM, a flexible solution with prebuilt wealth management sales and
service capabilities
Salesforce for Wealth Management, the leading cloud CRM solution
CRM for Wealth Management: Approaching Total Practice Management April 2011
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6
I NTRODUCTION
Compared with the customer relationship management (CRM) solutions of the 1990s and early
2000s available worldwide, today’s Web-accessible, service-oriented CRM solutions enable firms
to integrate more of their client data (e.g., financial data and documents), access this
information from more devices/locations, share this information with more colleagues and
divisions, and use this information to manage and automate critical practice activities beyond
sales and services. While many large and small wealth management firms are starting to take
advantage of these newer solutions, a significant number continue to manage client contacts
and activities through Microsoft Outlook/Office or basic desktop contact management tools.
Aite Group’s 2011 survey of 380 financial advisors revealed that almost a quarter of survey
participants either do not have a CRM solution or do not find the solution applicable to their
business. Figure 1 shows a breakdown of CRM availability metrics by type of financial advisor.
Figure 1: CRM Solution Availability by Wealth Management Industry Sub-Segment
Source: Aite Group Q1 2011 survey of 380 financial advisors
Figure 2 illustrates financial advisors’ level of interest in improving their CRM solution; we asked
financial advisors to allocate a hypothetical budget across various applications commonly used in
an advisor’s office (CRM, financial planning, portfolio management, etc.). Figure 2 shows the
amount allocated toward CRM applications.
CRM for Wealth Management: Approaching Total Practice Management April 2011
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Figure 2: CRM Spending Appetite?Advisor Perspective
Source: Aite Group Q1 2011 survey of 380 financial advisors.
Overall, 45% of financial advisors would spend some amount to improve their solution. Financial
advisors who already work with a CRM solution are evenly split between those who would
improve the solution through investments and those who are satisfied with their solution (Figure
3). Interestingly, more than one-third of advisors who do not currently have a CRM solution
available to them would invest in a CRM solution if they had the budget to do so. Several of
these advisors are ready to spend more than 25% of a hypothetical budget on this solution.
Figure 3: CRM Adoption vs. Advisor Inclination to Invest in Solution
Source: Aite Group Q1 2011 survey of 380 financial advisors.
CRM for Wealth Management: Approaching Total Practice Management April 2011
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Among firms with CRM solutions, many have yet to realize its intended return on investment in
the form of time savings or revenue growth. Large and midsize wealth management firms, in
particular, have faced two primary challenges with CRM solution investments:
Low user adoption:
Solutions are often viewed as too cumbersome by advisors, who are often
required to fill out myriad fields with every client activity record for the
purpose of providing management with greater transparency into advisor
productivity.
In addition, many advisors have resisted relinquishing control over their client
lists and information; advisors tend to view clients as theirs and not the
property of their firm, and they want to ensure that they can take their clients
with them if they leave.
Narrow use of the solution:
While firms may intend to purchase a CRM solution for more than contact
management, most firms remain on their journey toward achieving significant
process automation with their CRM solution, particularly due to the technical
and personnel challenges involved with standardizing the way hundreds or
thousands of individuals perform the process.
Despite the challenges to CRM adoption mentioned above, Aite Group believes that many CRM
solutions have used lessons learned from the past decade to re-work their solutions. Solutions
today are easier to use, and include sales and service best-practice functionality that end users
(or administrators) can more easily configure on their own to fit their firms’, or internal groups’,
unique practices. In addition to greater ease of use and end-user functionality, solutions today
include workflow tools that allow advisors and firms to gain greater control of their processes.
Finally, solutions are cheaper today than in the past thanks to the advent of Software as a
Service (SaaS), which allows advisors to access the functionality they need from their browser
without purchasing and maintaining hardware and software assets.
We believe that an increasing number of advisors and wealth management firms will take a fresh
look at CRM solutions, once viewed as too expensive or complex, in their search for a solution
that will help advisors better manage client processes.
OVERVI EW OF VENDORS
In this report we profile seven of the most important North American CRM vendors whose sole
focus is client relationship management software and who offer wealth management-specific
CRM solutions either natively or through partners.
CRM for Wealth Management: Approaching Total Practice Management April 2011
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Table A: Overview of CRM Vendors
Name CRM Solution
Release
Year
Fin. Inst. Customers
/% Wealth Mgt
Avg. WM
Implementation (Users)
CDC Software
Pivotal CRM 2001 400/13% 500
Junxure
Junxure 1998 1,300/100% 7
Microsoft
Dynamics 2005 500/20% 100
NexJ
NexJ Contact for
Finance
2006 13/77% 8,300
Pareto Systems
Pareto Platform
Powered by
Microsoft
Dynamics CRM
2010 8,000 users/100%
5 – small firms
5,000 – large firms
Redtail
Technology
Redtail CRM 2003 27,000/100% Small firms
Salesforce.com
Salesforce for
Wealth
Management
2007 Over 5,000/N/A N/A*
*Even number of large, medium and small customers.
Source: Aite Group
The following players were invited to participate in our research study, but declined to respond
to our request for information:
Ebix
Oracle (Seibel)
The Sage Group (Sage Act!)
Seeking to better understand how the CRM capabilities of these providers compare to those of
pure-play solutions, we also spoke with several wealth management technology providers (and
their customers) that provide a CRM solution as part of a wealth management platform:
Advice America (Client Vision), part of Fiserv
Focus Solutions (Focus:360
0
)
Polaris (Intellect Wealth)
Tamarac (Advisor X CRM)
Temenos (WealthManager), formerly known as Xeye
Customers who leverage these solutions value the complete integration that exists between the
financial planning application and / or the portfolio management application. The depth and
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breadth of CRM functionality varies more across these solutions compared with pure-play
solutions. Focus Solutions and Temenos currently offer the most wealth management-specific
functionality, including workflow capabilities. We will discuss these platform vendors in more
detail in future research reports.
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CRM MARKET OVERVI EW
NORTH AMERI CAN I NVESTMENT DRI VERS
CRM vendors included in this report reported strong revenue growth in 2010 and anticipate
continued robust growth for 2011. Based on an aggregation of vendors’ actual and estimated
revenue, we estimate that CRM-driven revenue rose by almost 20% between 2009 and 2010 for
the vendors covered in this report. Aite Group’s recent primary research in the bank wealth
management space validates that this market is active and growing. More than 40% of 19 top
100 North American banks interviewed in Q4 2010 had either just finished a CRM
implementation, were about to embark on such a project, or were considering investing in a new
CRM solution for their brokerage firm or mass-affluent organization. Many banks are looking to
leverage Web-based solutions to enable cross-department collaboration while avoiding costly
implementations and maintenance fees. For example, a wealth management team might consist
of a commercial banker, a private banker, and a financial advisor; they would all need to access
one calendar and set of client information. Enabling this type of cross-department collaboration
through an internal system would be technically challenging and costly.
Table B highlights in more detail some of the primary CRM investment drivers from a group of
customers that are looking to achieve more than contact and calendar management. Many of
the firms look to their CRM solution to do the following:
Provide a unified view of customer information
Drive consistent adoption of sales and service best practices across the sales force,
and
Automate business processes or workflows
Table B: Key CRM Investment Drivers?Vendor Customers
Firm Type Solution Since Dominant Reason for Selection
Small broker/dealer Pareto Platform 2010 Manage client service activities
Large bank Dynamics 2010 Enable new advisory process
Wirehouse NexJ 2009 Customer data integration to get to holistic view
RIA Junxure 2007 Compliance workflow management
RIA Redtail 2007 Manage client service activities
RIA Salesforce.com 2006 Flexibility to adopt to custom firm processes
Independent
broker/dealer
Tamarac 2002 Portal to portfolio and client information
Large credit union Pivotal CRM 1999
Manage client experience and workflow at point
of contact*
*Key reason for staying with the same provider for more than a decade Source: Aite
Group interviews with vendor clients
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NORTH AMERI CAN SPENDI NG FORECAST
Except for Pivotal CRM and Microsoft Dynamics, vendors derive the majority of their wealth
management revenue from North America (Figure 4).
Figure 4: Geographic Presence Based on Customer Percentages
Source: Vendors
We estimate total North American wealth management CRM spending was approximately
US$460 million in 2010. We project spending will grow to US$620 million over the next five
years, at a compounded annual growth rate of 8% (see Figure 5).
Figure 5: North American Wealth Management CRM Technology Spending
Source: Aite Group, vendors, company financial statements, press releases
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We discuss a few of the key investment drivers below:
1. Availability of easier-to-use CRM solutions: Up until now, a majority of advisors has mostly
avoided using CRM solutions in favor of easier-to-use and more economic tools, such as
Microsoft Outlook and Goldmine. CRM solutions have re-tooled their applications recently
to offer simpler user interfaces and easier-to-use functionality at a lower price point
compared to solutions available in the past. In addition, because most CRM solutions now
synchronize with Microsoft Outlook, advisors will feel more confident moving to a new
environment that retains familiar functionality.
2. Advisors need a solution that can do more than store contacts/events: Advisors face
significant competition from full-service and online brokerage firms. In order to compete,
advisors must provide clients with a differentiated client experience. In addition to making
every client interaction valuable for the client, advisors must also ensure that their most
valuable clients receive more of their attention. CRM solutions can help advisors manage
their service activities strategically and they can help advisors and their staff prepare for
every type of interaction. In addition to spending more time on service activities, advisors
are likely to spend more time performing and tracking client-related compliance activities.
The new fiduciary standard that is expected to materialize over the next year will require
more documentation over the sales process. Solutions that can help advisors automate and
track key client activities related to sales, service, marketing, and compliance will become
more critical.
3. Availability of SaaS/cloud solutions:
1
Wealth management firms of all sizes have been
adopting SaaS solutions for technical and business reasons. On the technology side, more
and more business are recognizing the cost benefits of outsourcing IT applications and
infrastructure to firms that specialize in these areas. Another business driver of cloud
solutions that can provide both computing platforms and Applications as a Service (i.e.,
Microsoft and Salesforce.com) is the ability to take advantage of new innovations in
consumer, sales, service, and marketing technology more quickly compared to solution
platforms that reside in-house. These benefits will drive a market share shift from software
solutions to SaaS or cloud-computing-based solutions. In addition, adoption of cloud
solutions is likely to grow CRM spending. As more and more advisors adopt cloud solutions,
they are likely to add applications/enhancements, which will drive up monthly user fees.
We estimate that spending on cloud-based and SaaS solutions will grow at a faster rate (on the
order of 15% CAGR) compared to spending on software, license-based solutions (approximately
6% growth). This trend will change the mix of spending across application, maintenance, and
professional services and internal IT. As a result of the stronger growth in spending on
outsourced solutions, application spending will rise steadily as a percentage of total spending,
while maintenance and internal IT costs will decrease.
1. According to the National Institute of Standards and Technology (NIST), cloud computing is a model for enabling convenient,
on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage,
applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider
interaction.
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Professional services expenses will continue to represent a significant percentage (close to a
quarter) of CRM spending over the next few years as advisors spend to migrate data from their
existing solutions over to newer solutions, and as firms invest in application integration,
customization, and training.
CRM spending growth will be particularly strong among smaller firms where the majority of
advisors are leveraging Microsoft Outlook or a basic contact management solution (many
leverage Goldmine or Sage Act). More and more advisors will seek to switch to browser-based
solutions that can automate workflow and enable information access across the firm and across
devices. Sage Act may be able to retain a percentage of its client base, however, as the firm
recently launched a premium edition that includes workflow tools and Microsoft Outlook
integration and collaboration features (such as group scheduling) to better compete with firms
like Redtail and Junxure, which offer strong CRM solutions specifically geared to small wealth
management firms.
Table C provides estimates on spending growth rates by advisor firm size.
Table C: CRM Spending and Growth Rate Estimates by Firm Size?North America
Firm Size # of Advisors *
% of Total CRM
Spending
5-Year
CAGR
Large (over 2,000 advisors) 200,000 39% 6%
Medium (200-2,000 advisors) 250,000 42% 5%
Small (under 200 advisors) 200,000 19% 9%
Total 650,000 100% 8%
*Includes sales support staff.
Source: Aite Group
We expect large firms to increase spending on professional services in order to grow user
adoption through training or technical improvements. Finally, several large firms will replace
existing solutions to take advantage of newer and more cost-effective web-based and cloud-
based solutions. A significant percentage of medium-sized firms will look to increase
investments in advisor productivity tools in an attempt to become more competitive with large
and smaller firms. On the other hand we expect a significant percentage of medium-sized firms
to continue to make do with existing solutions due to insufficient technology budgets for non-
critical projects.
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15
WEALTH MANAGEMENT CAPABI LI TIES AND
FLEXIBI LI TY
WEALTH MANAGEMENT CAPABI LI TI ES
Figure 6 illustrates our comparison of specific solutions based on their out-of-the-box wealth
management capabilities.
Figure 6: Solution Comparison, Out-of-the-Box Wealth Management Capabilities
Source: Aite Group
Microsoft Dynamics CRM is highly flexible, and can be adapted to meet the needs of customers
in any industry. Microsoft works with numerous, industry-focused partners to customize its
solution to meet the very specific needs of each firm. In North America, Microsoft Dynamics
CRM’s most important partners (managed partners) for the wealth management industry are
Salentica and Customer Effective. Also representing Microsoft’s capabilities in the wealth
management space is Pareto Platform, a highly customized version of Dynamics that was built to
implement wealth management sales and service best practices taught by Pareto’s consulting
group. Dynamics is also the CRM offer that Tamarac has integrated with their portfolio
management solution to create an integrated wealth management platform.
Salesforce.com has a wealth management version that includes the key fields that advisors are
used to working with, such as areas for financial account balances and holdings data. The
solution also includes a separate Know Your Customer section that can be sent to compliance
officers for review/sign-off. Salesforce for Wealth Management customers include very large
wealth management organizations (Merrill Lynch, for example) and many small, one- and two-
person advisor offices.
Pivotal CRM and NexJ come with more advanced wealth management functionality out-of-the
box, such as the ability to visualize and analyze the full breadth of a client’s relationships (family,
professional, business). NexJ takes the relationship view a step further, allowing advisors to view
asset allocations at different levels of the relationship. In addition, NexJ has numerous wealth
management integration partners, allowing advisors to install a complete wealth management
solution out-of-the-box.
Pareto Platform provides the tools for advisors to segment their clients and automate client
service strategies in accordance with industry best practices that the firm also teaches through
advisor consulting and virtual coaching. Pareto currently integrates out-of-the-box with a few
key non-CRM wealth management applications.
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Solutions from Redtail and Junxure are made for small wealth management firms to keep track
of all client interactions and activities. A key investment driver in these solutions is not only sales
and service management, but also risk and compliance management. Because these solutions
tend to play a critical role for these small firms, their user adoption is relatively high and
customers are very involved with their vendor’s product development process. Over the years,
the applications have integrated the tools, fields, and views that make these solutions the most
ready to install out-of-the-box for small wealth management firms. In addition, these solutions
are integrated in one or more custodian platforms typically used by registered investment
advisors (RIAs), and they have already built integrations to several data-consolidation and
financial-planning applications.
Within the wealth management industry, we show in which sub-segments vendors participate
based on percentage of customers (Figure 7).
Figure 7: Wealth Management Customers by Industry Sub-Segment
Source: Vendors
FLEXI BI LI TY
CUSTOMI ZATI ON AND APPL I CATI ON DEVE L OPMENT
All of the solutions covered in this report can be customized to different extents (fields,
functionality) to fit an organization’s unique processes. Large and midsize customers are likely to
have the funds and the internal IT resources to perform the most extensive customizations and
integrate the solution with internal systems. As a result, solutions catering to larger firms have
built-in development tools to allow customers to modify the application or build and maintain
add-on capabilities.
Small firms have fewer technology resources and will seek a vendor that provides a solution that
they can work with off-the-shelf. Many RIAs and small broker/dealers choose to work with
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Redtail or Junxure for this reason. These solutions already come with best-practice fields, views,
and client workflows. In addition, Redtail and Junxure integrate out-of-the box with data
consolidation solutions (Albridge, Advisor Exchange, etc.) and one or two of the key custodian
platforms that RIAs leverage (Fidelity, Pershing, Schwab, or TD Ameritrade). Pareto Platform
teaches best practices and is used by advisors who want to adopt these practices. Thus,
customization of this solution is likely to be less necessary and/or desirable. In addition, Pareto
Platform can integrate out-of-the-box with Albridge for data consolidation.
Microsoft Dynamics and Salesforce.com allow end users/administrators to add custom objects
and fields. The solutions can also integrate with external data sources and applications using
Web services. What makes Salesforce.com known for being particularly flexible is its Force.com
open-source application development platform, which gives customers and its 300,000
developers the ability to quickly develop, test, and launch new applications that integrate with
Salesforce.com. This platform also allows customers to build entirely new cloud applications
through a new offering called Appforce. Developers can make their Salesforce.com add-on
applications available for sale through Salesforce.com’s App Exchange. For example, a popular
third-party application used by financial advisors and available through the AppExchange
website is Ribbit, a voice-to-text application that would allow an advisor to phone in notes from
a meeting and see those notes populated in Salesforce.com by the time they return to the office.
Thus, firms with limited development budget can more easily enhance their existing CRM
application by purchasing add-on solutions off-the shelf at a cheaper cost than would be hiring
developers to build the applications. Larger firms with more IT budget could, however, easily find
a Force.com developer to build customizations or integrate the solution with proprietary
applications.
Microsoft is catching up to Salesforce.com’s open development platform model with the launch
in 2009 of its cloud-based platform, Windows Azure, for business partners and customers. The
platform allows partners and customers to build new cloud applications or customized versions
of Microsoft Dynamics on the Azure platform. Partners can also sell add-on applications for
Dynamics through Microsoft’s application store, Microsoft Dynamics Marketplace.
NexJ and Pivotal CRM include application development toolkits with their solutions to allow
clients to add their own functionality. Pivotal CRM’s application development environment is
based on Microsoft Visual Studio, and allows clients to customize the out-of-the-box
functionality as well as build add-on applications. NexJ states that most of its customers will add
capabilities to the core solution rather than modify the core solution itself.
Table D: Application Development Capabilities
Solutions
Application
Development Tools
Open to Third-Party
developers
Application
Marketplace/Store
Junxure ? ? ?
Microsoft Dynamics ? ? ?
Pareto Platform ? ? ?
Pivotal CRM ? ? ?
NexJ Contact for
Finance
? ? ?
Redtail CRM ? ? ?
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Solutions
Application
Development Tools
Open to Third-Party
developers
Application
Marketplace/Store
Salesforce for
Wealth
Management
? ? ?
?: Available; ?: Partial, supporting only one or a few development languages (e.g., Java or .NET), ?: Not Available.
Source: Vendors, press releases, news articles
PARTNERSHI PS
Table E highlights profiled vendors’ most important wealth management and professional
services technology partners. In addition, we show the percentage of solution sales derived
directly from partners.
Solutions that are built for large enterprises work with many professional services partners on
application integration and, potentially, customization. These solutions tend to also resell their
solution through partners. Of all the vendors, Microsoft relies most on its partners for sales of
Dynamics. Microsoft is involved in enterprise deals, but the firm will often rely on partners to
reach small and midsize firms. Microsoft Dynamics is akin to a car chassis in that it can easily be
molded to fit a particular industry/customer. Multiple technology firms around the world base
their business on reselling, customizing, implementing, and supporting Microsoft Dynamics.
Salesforce.com is mostly sold directly by Salesforce.com representatives. Salesforce.com works
with many partners to develop add-on applications (available on the AppExchange). The firm
does depend on consulting firms and independent software vendors to resell the Force.com
platform by building or helping companies build cloud applications.
Table E: Overview of Key Vendor Partners and Partner-Driven Sales
Vendors
Key Wealth Management
Partners
Key Professional Services
Partners
% of Sales From
Partners
Junxure Numerous. Most
important: Schwab
Institutional
None cited 0%
Microsoft
Dynamics
Salentica, Customer
Experience
Accenture, Ascentium,
Avanade, Capgemini, EDS,
Infosys
95%
Pareto Platform Albridge, MoneyGuidePro None cited 0%
Pivotal CRM None cited Capgemini, CRMCulture,
Tokara Solutions
25%
NexJ Contact for
Finance
Glass Client Programs,
Portfolio Aid, SunGard
Accenture, Capgemini, CGI,
Deloitte, Headstrong,
SunGard
5%
Redtail CRM Numerous, including
Pershing
None cited 0%
Salesforce for
Wealth
Management
Schwab None cited Mostly direct from
Salesforce.com
Source: Vendors
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Solutions aimed at small wealth management firms are sold directly. Redtail and Junxure do not
allow partners to resell their solution today.
HOSTED VERUS ON- PREMI SE
The vendors profiled in this report deploy their solutions through the following methods:
SaaS-only deployments: Redtail CRM and Salesforce for Wealth Management only offer
solutions that reside off-site and can be accessed from any Web browser. Salesforce.com’s
application and infrastructure is more flexible than Redtail’s as it offers five different packages
priced on a per-user basis, whereas Redtail offers one solution priced per database (up to 15
users per database). Please see Table P for more pricing information.
Hybrid deployments: Pivotal CRM, NexJ, Microsoft Dynamics, Pareto Platform, and, soon,
Junxure (2012) offer two deployment options: one hosted and Web-based and the other on-
premise. To date, all Pareto Platform customers have a hosted solution. NexJ, by contrast, has
only deployed its solution at customer sites. Larger firms continue to prefer on-site deployment
options as they have the technology staff internally to maintain the application and manage
customer data security risks.
Microsoft Dynamics offers the unique ability to allow customers to adopt different deployment
options across the firm and change deployment options at any time. For example, a new
Dynamics client has elected to start with Dynamics Online and then transition to an on-premise
solution once they obtain the budget to invest in the necessary infrastructure/integrations.
While Junxure will launch its Web-based SaaS solution in 2012, several customers have already
implemented Junxure in a hosted environment by working with managed solutions providers,
including Amazon Elastic Compute Cloud and GoGrid.
Figure 8 illustrates how vendor customers have elected to deploy their solution, either on-
premise or in a hosted environment.
Figure 8: Hosted vs. On-Premise Deployments (As of Year-End 2010)
Source: Vendors
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Figure 9 provides a high-level categorization of CRM solutions based on their flexibility (ability to
customize, integrate, and add to) and their wealth management focus.
Figure 9: Flexibility vs. Wealth Management Capability Matrix
Source: Aite Group
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DETAI LED VENDOR COMPARI SON
This report compares vendors based on their CRM capabilities that can help financial institutions
integrate and leverage client information to achieve business results. Ultimately, financial
institutions should look to their CRM solutions to help their advisors gain greater control over
their practice activities and perform these more efficiently (Figure 10).
Figure 10: Advanced Applications of CRM Solutions in Wealth Management
Source: Aite Group
CENTRALI ZI NG CLI ENT I NFORMATI ON
F I NANCI AL DATA I NTEGRATI ON
The ability to view financial data in the same location as the rest of a client’s information adds
tremendous value to financial advisors, as they can go to one place to monitor clients’ financial
situations and use this information to generate sales, service, and marketing opportunities. In
Table F we review the out-of-the-box capabilities that vendors provide to help customers
integrate client financial information through integrations with custodians, or by integrating with
data consolidation and portfolio management solutions.
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Table F: Financial Data Integration Capabilities: Out-of-the-Box Integration
Vendors Custodians
Data
Consolidation
Portfolio
Management
Junxure ? ? ?
Microsoft Dynamics ? ? ?
Pareto Platform ? ? ?
Pivotal CRM ? ? ?
NexJ Contact for Finance ? ? ?
Redtail CRM ? ? ?
Salesforce for Wealth
Management
? ? ?
? Out-of-the-box integrations; ?Does not currently have integration partners.
Source: Vendors, press releases, news articles
Many large financial institutions will not need to integrate financial information from external
firms since their clearing and custody operations are in-house. Thus, partnership with custodians
and clearing firms will be more important for RIAs and, more generally, financial institutions that
outsource clearing and custody operations. These tight integrations imply that financial data may
update automatically on a daily basis or in real-time. While vendors may not have an official
partnership with a major custodian, this does not mean that data integration is not doable. For
example, Redtail integrates with Pershing, but the firm also provides a way for customers to
upload Schwab PortfolioCenter files to their program.
Perhaps more important for facilitating the integration of financial information into CRM
solutions than a partnership with a clearing firm is an out-of-the-box integration with a data
consolidation provider?an integration that is used both to aggregate internal data from back-
office systems as well as external data. Data consolidator Albridge can access data held at
various financial institutions. Advisors seeking to keep up with their clients’ assets held at
competing firms can also leverage this technology to include “held-away” assets in their client
record. Tracking this information allows advisors to stay on top of the opportunity to grow wallet
share, and provides them with the ability to provide better advice since it is based on the client’s
total portfolio.
All of the vendors state that they can handle integration with internal proprietary systems as
requested by the company using application programming interfaces. NexJ has been selected by
several large financial institutions for its strength in handling complex integrations with
proprietary systems. In addition, NexJ has developed custom adapters to ThomsonOne,
Hedgehog, MESH Integration Adapter, Portfolio Aid, and SunGard WealthStation applications.
Figure 11 shows the kind of financial data that is available within NexJ. The solution brings up
account, holdings and transaction level information right within the household or client record.
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Figure 11: NexJ Financial Accounts Screen
Source: NexJ
MI CROSOFT OUTL OOK I NTEGRATI ON
Given Microsoft Outlook’s dominant share of the corporate client email market, integration with
Microsoft Outlook has become a critical requirement of CRM solutions. All of the solutions
included in this report will be able to append Microsoft Outlook emails and calendar events to a
client record in the CRM solution. Two of the solutions (Redtail and Junxure) will do this
automatically upon recognizing an email. With Salesforce.com’s new Outlook plug-in,
Salesforce.com provides users with the ability to choose whether emails are automatically sent
to Salesforce.com or manually synched through a “send to Salesforce.com” button (advisors may
only want to send selected emails to the client record rather than every interaction). Dynamics
and Pareto Platform send responses to emails that have been tagged for synchronization
automatically to the CRM system.
Most solutions will also capture emails from other programs, such as Gmail. Redtail also offers
email hosting and archiving from Zimbra.
In Table G below, we provide a few comparative data points on vendors’ Microsoft Outlook
functionality. Some vendors have customized the Outlook interface to provide advisors with
access to a significant amount of data and functionality from Outlook directly without the need
to visit the CRM solution.
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Table G: Microsoft Outlook Email Integration Capabilities
Vendors
Outlook Emails
Synched With CRM
Emails Assigned to
Many Client Records
Custom Outlook
Development
Junxure ? ? ?
Microsoft Dynamics ? ? ?
Pareto Platform ? ?* ?
Pivotal CRM ? ? ?
NexJ Contact for Finance ? ? ?
Redtail CRM ? ? ?
Salesforce for Wealth
Management
? ? ?
?: Available; ?: Not Available.
*Two in total.
Source: Vendors, Aite Group
Pivotal CRM states that its integration with Microsoft Outlook is so strong that many advisors
work solely in Outlook. Pivotal CRM allows advisors to right-click on any field within Outlook to
view additional information about the field (for example, an account number will reveal detailed
account holdings in Outlook following a right-click). Figure 12 is a screenshot of Pivotal’s Contact
screen, which can be accessed directly from Microsoft Outlook.
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Figure 12: Screenshot of Pivotal CRM Contact Screen Available Through Microsoft Outlook
Source: Pivotal CRM
DOCUMENT S
Other key client data to add to the record are documents (financial plans, investment policy
statements, client reports, etc.). Many of the vendors profiled integrate with SharePoint and
allow CRM users to upload documents and manage them directly from their CRM solution.
Redtail has its own imaging solution that is WORM-compliant
2
which is the electronic data
storage method required by FINRA for paperless offices.
Salesforce.com includes the ability to attach documents in the client record through Salesforce
Content. The solution also includes Workspaces where many users can collaborate on a
document. For more robust document auditing and workflow capabilities, these solutions would
need to integrate with a content management solution such as FileNet or LazerFiche.
2. “WORM” stands for Write Once, Ready Many and refers to any type of storage medium to which data can be written to only a
single time, but can be read from any number of times. Typically this is an optical disk whose surface is permanently etched
using a laser in order to record information (foldoc.org)..
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Junxure and NexJ includes the ability for advisors to share documents and receive updated
statements from their clients through their client portal solutions (Junxure’s ClientView and
NexJ’s Client Portal for Finance). These portals are also used to present updated financial
information to clients, allowing advisors and clients to view the same information
simultaneously (while on the phone with one another, for example).
Table H: Document Management Capabilities
Vendors
Document Management
Out-of-the-box
Documents Accessible From
CRM Client Record
Client Website for
Document
Sharing/Upload
Junxure 9 solutions ? ?
Microsoft Dynamics SharePoint ? ?
Pareto Platform SharePoint ? ?
Pivotal CRM SharePoint ? ?
NexJ Contact for
Finance
3 ? ?
Redtail CRM 2 ? ?
Salesforce for Wealth
Management
Multiple* ? ?**
?: Available; ?: Not available.
*More than 30 solutions found on Salesforce.com’s AppExchange**Siteforce
Source: Vendors.
I NFORMATI ON ANALYSI S & SEARCH
CL I ENT REL ATI ONSHI P MODEL I NG
In wealth management, clients are viewed as part of larger relationships. Relationships are not
only familial, but also professional, or based on association memberships. Understanding these
relationships and keeping track of them allows advisors to deliver more customized financial
planning, build rapport with the client/household, and helps advisors identify business
development opportunities. Solutions that include out-of-the-box relationship modeling and
analysis capabilities can help advisors gain deeper insights into their relationships more quickly.
Pivotal CRM and NexJ provide similar relationship modeling capabilities, allowing advisors to
create different types of relationships (family, employee, consultant, etc.). In addition, the
relationship hierarchies are displayed visually based on a file tree, which helps advisors quickly
understand their client’s relationship (see Figure 13). Information at each level of the
relationship is visible and can be rolled up at different levels. For example, in NexJ, the calendar
is visible at the client level, household level, employer level, etc. In addition, the solution rolls-up
financial account values at different levels of the relationship.
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Figure 13: NexJ and Pivotal CRM Relationships Trees
NexJ Relationship Tree Pivotal CRM Relationship Tree
Source: Salesforce for Wealth Management
Salesforce for Wealth Management includes relationship groups that allow advisors to assign
many accounts/clients (up to 20) to one relationship group or one account/client to many
relationship groups (up to 200 accounts). Advisors can view a client’s relationships and each
relationship member’s account balances through the client record and a separate Relationship
Groups page. Advisors can choose which relationship group members to include in a roll-up of
information and what type of information should be combined.
Table I: Client Relationship Modeling Capabilities
Vendors
Clients Roll-up to
Relationships
Multiple
Relationship
Types*
Hierarchical
Relationship Tree
View
Information Rolls-up to
Relationship
Junxure ? ? ? ?
Microsoft
Dynamics
? ? ? ?
Pareto
Platform
? ? ? ?
Pivotal CRM ? ? ? ?
NexJ Contact
for Finance
? ? ? ?
Redtail CRM ? ? ? ?
Salesforce
for Wealth
Management
? ? ? ?
?: Available;?: Not available.
*e.g., family, professional, friend
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ADVI SOR DASHBOARD
Given the plethora of information available through a CRM solution, advisors need help
navigating through this data to allow them to get the information they need quickly.
Solutions include dashboards that elevate key business and client information to help advisors
keep track of priority items and measure the progress they are making toward their business
goals. Microsoft Dynamics, NexJ Contact for Finance, Pivotal CRM, and Salesforce.com allow end
users to customize their dashboard components. Microsoft Dynamics and Salesforce.com
include drag-and-drop functionality and the ability to view information graphically. NexJ will be
offering this level of capability in a future release.
Dynamics also allows advisors to share their dashboards with managers or other colleagues.
Salesforce.com allows firms/administrators to share up to 10 different dashboards (unlimited
edition only) across users. Redtail and Junxure provide preconfigured dashboards that are not
customizable by end users directly.
Figure 14: Salesforce.com Dashboard Development
Source: Salesforce for Wealth Management
Redtail’s dashboard’s has preconfigured boxes, but they can be collapsed/expanded, and
advisors can add items directly from the dashboard. This allows advisors to get more done from
one screen (Figure 15).
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Figure 15: Redtail CRM Dashboard
Source: Redtail CRM demo version
Junxure includes two dashboards, one displaying multiple business metrics through graphics
(e.g., revenue per client, AUM per client and staff, etc.) and another showing the number of
open actions available at the client, employee, and workflow level.
Figure 16: Junxure Actions Dashboard
Source: Junxure
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SEARCH
In addition to the advisor portal, search features are essential for getting custom views of client
information to meet advisors’ specific needs. Advisors, or their home offices, will need to create
custom client lists for marketing, cross-selling, or client service reasons.
Microsoft Dynamics, NexJ, Pivotal CRM and Salesforce for Wealth Management provide
extensive search capabilities while Junxure and Redtail allow searches to consist of a maximum
of 10 criteria. All solutions will allow advisors to create custom lists or views (Dynamics) that can
easily be retrieved. Microsoft Dynamics, Pareto Platform, Redtail, and Salesforce.com provide
the fastest access to custom lists/views across the application.
Salesforce.com has unique global search capabilities for single keyword searches. This allows the
advisor to search for a client or an account or any other term from one search bar accessible
across the application. Other solutions will limit searches to a specific area of the application, or
will require end users to specify which object, or category, to search within (e.g., accounts,
contacts, etc.). Salesforce.com is built to allow end users to find the information they need very
quickly. All client information is available through one screen. Users can avoid scrolling through
the page to get to the information they want by placing the mouse over shortcut links to objects
such as “opportunities” and “activities” located at the top of the page. This action automatically
brings up all of the information details located at the bottom of the page.
I MPLEMENTI NG SALES & SERVI CE BEST PRACTI CES
PI PEL I NE MANAGEMENT
Most wealth management firms look to their CRM system to help with sales forecasting. Wealth
management firms ask their advisors to update the status of their opportunities and indicate
aspects about their opportunity such as estimated revenue or assets, probability of close, and
estimated due date. All vendors covered in this report will allow advisors to update the status of
an opportunity and indicate its probability of close. The reality is that most advisors (particularly
employee advisors) do not want to spend the time entering in pipeline information. The
common view among advisors is that this information may benefit their manager, but they do
not see the value of investing the time for their own purpose. Vendors that allow advisors to
create opportunities from multiple places within the CRM solution can help drive adoption of
this important tool. For example, Microsoft Dynamics allows users to convert Outlook emails
into opportunities with one click, and Junxure users can add or update an opportunity directly
from an action.
CL I ENT SEGMENTATI ON
The ability to segment clients and manage activities/interactions by client segment is one of the
most important functions of a CRM system. Advisors cannot afford to spend the same amount of
time with every client. They need to decide who is going to receive more of their time and what
the service experience will be for their high-value clients.
All vendors provide advisors with the ability to segment their clients. But only one firm, Pareto
Platform, is highly focused on teaching advisors a best-practice method of segmenting clients in
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addition to providing the tool to enable this practice. The training is offered for free as part of
the solution. Because the segmentation approach is based on three criteria, only one of which is
numeric (assets, advocacy, and attitude), Pareto requires advisors to manually assign clients to a
segment.
For advisors that seek to categorize their clients based on data points that are already part of the
client record, all of the solutions would be able to automate this process either through search
or workflow capabilities.
SERVI CE MANAGEMENT
Several solutions have strong service management capabilities. Pareto Platform comes with
best-practice service matrices for each of the recommended client segments (see Figure 17).
Advisors can create their own service matrix to better fit their business needs. Once service
activities (meetings, interactions) are defined for each client segment, these activities
automatically appear in one or more calendars. In addition, the service management workflow
can send “actions” to the individual who is responsible for scheduling the meeting.
Figure 17: Screenshot of Pareto Platform’s Service Management Tools
Source: Vendor
NexJ, Pivotal CRM, Junxure and Dynamics also include specific service management capabilities
that allow advisors to define and schedule service activities. Pivotal CRM provides call plan
templates that allow advisors or administrators to create an annual contact plan for a client tier.
Advisors can apply the template to specific clients. These plans can also be sent to a manager for
approval (Figure 18).
Table J: Client Service Management Automation (Out-of-the-Box)
Vendors
Separate area to
define client service
activities
Automate assignment
of client services to
client tier
Service appointments
automatically added to
calendar
Junxure ? ? ?
Microsoft
Dynamics
? ? ?
Pareto Platform ? ? ?
Pivotal CRM ? ? ?
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Vendors
Separate area to
define client service
activities
Automate assignment
of client services to
client tier
Service appointments
automatically added to
calendar
NexJ Contact for
Finance
? ? ?
Redtail CRM ? ? ?
Salesforce for
Wealth
Management
? ? ?
?: Available;?: Not available.
Source: Vendors
Figure 18: Screenshot of Pivotal CRM Call Plan Template
Source: Vendor
MARKETI NG & COMMUNI CATI ONS
All vendors allow advisors to create letter/email templates and automatically merge client
information to send out personalized emails and letters. Where vendors differ, however, is in the
fulfillment and tracking of campaigns. Redtail, for example, leaves the marketing fulfillment role
to third-party vendors such as Sendoutcards.com or Marketinglibrary.net. Redtail and Junxure
both allow advisors to send out HTML email marketing messages, but these messages would
need to be developed using Microsoft Word. By comparison, Pivotal CRM and Salesforce.com
would allow advisors to create emails using prebuilt HTML templates.
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Pivotal CRM integrates with Pivotal eMarketing for advanced marketing capabilities to develop,
schedule, execute, and track campaigns. In addition, Pivotal eMarketing supports Web
registrations for live events. Salesforce for Wealth Management comes with the ability to send
up to 1,000 HTML emails based on a small number of templates. Users will be able to track when
and how many times emails are opened. For additional capabilities, Saleforce for Wealth
Management users can find many options on the AppExchange.
Table K: Email Marketing Capabilities Out-of-the-Box
Vendors
Ability to create HTML
email newsletters
Track campaign
statistics
Partner(s)
Junxure ? ? N/A
Microsoft Dynamics
?
? ExactTarget
Pareto Platform ? ? N/A
Pivotal CRM ? ? Pivotal eMarketing
NexJ Contact for Finance ? ? N/A
Redtail CRM ? ? MarketingLibrary.net
Salesforce for Wealth
Management
? ?
Multiple (Exact Target,
Eloqua,
VerticalResponse, etc.)
? : Standard email program/word template capabilities; ? Full capabilities out-of-the-box; ? No capabilities out-of-the-box
Source: Vendors
WORKFLOW TOOLS
All of the vendors provide end users with the ability to build multi-stage and multi-step
workflows, or action sequences that can automatically generate tasks when workflows are
triggered. The tools will track when tasks are completed and automatically send out the
subsequent task in accordance with the defined process.
Solutions from Microsoft, Salesforce.com, NexJ, and, Pivotal CRM can go beyond task
management capabilities to true workflow automation. For example, these solutions include
“approval workflow,” which allows advisors to automatically send a task or an email to a
supervisor requesting their review and approval. The supervisor could log into the CRM solution
and approve a document or a client view in the solution directly. Workflow capabilities that are
more project-management-oriented (or activity-management-oriented), such as Redtail’s and
Junxure’s, would send a task to a designated individual to remind them to request and obtain an
approval. Customers will often integrate Redtail or Junxure with content management vendors
such as Documentum, FileNet, and Laserfiche to manage a document-approval workflow
process.
Saleforce.com enables end-users to leverage advanced workflow capabilities without needing to
know how to program in a computer language. For example, end-users can create workflow
triggers based on formulas (for example, upgrading a client when their assets reach more than
half a million dollars). Several of the other solutions would require formulas to be written in a
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programming language. Another feature of Salesforce.com’s workflow solution is the ability for
non-programmers to create a workflow step to trigger a Web services call to another application
to automatically send/receive data to another third-party site or application. The end user would
need to obtain the message from a programmer and paste it into a field.
Pareto Platform comes with prebuilt workflow templates that specify specific steps that advisors
should consider following based on their clients’ service tier and key life events (retirement,
onboarding, annual meeting, etc.). Advisors can leverage these templates or develop their own
using the straightforward user interface illustrated in Figure 19.
Table L: Multi-Step Workflow Automation (Out-of-the-Box Functionality)
Vendors
# of
Workflows
Allowed
Visual
workflow
development
Triggers
Tasks/Actions
Triggers
Emails
Automate
& Track
Approvals
Prebuilt
workflows
(e.g., KYC,
acct opening)
Junxure Unlimited ? ? ?* ? ?
Microsoft
Dynamics
Unlimited** ? ? ? ? ?
Pareto
Platform
Unlimited ? ? ? ? ?
Pivotal CRM Unlimited
In
development
? ? ? ?
NexJ Contact
for Finance
Unlimited ? ? ? ? ?
Redtail CRM Unlimited ? ? ?* ? ?
Salesforce
for Wealth
Management
1,000 ? ? ? ? ?
?: Available;?: Partially available; ?: Not available.
*Email reminders. **Standard edition includes 200 workflows (US$44 per-user, per-month version)
Source: Vendors and solution documentation
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Figure 19: Pareto Platform Workflow Capabilities
Source: Pareto Platform.
CROSS- APPLI CATI ON WORKFLOW: FI NANCI AL PLANNI NG
In addition to serving as a control tower for client processes, CRM solutions can help financial
advisors automate processes that involve customer data entry. Many of the CRM solution
covered in this report have special integrations with financial planning vendors to allow advisors
to enter client information once and see it populated directly in the financial planning tool. This
integration is even more valuable if financial data is automatically updated in the financial
planning tool. Table M provides more information on vendors’ financial planning application
integrations and partnerships.
Table M: Integration with Financial Planning Applications
Vendors Out-of-the-Box Integration
Reseller
Agreements
Official
Partnerships
Junxure MoneyGuide Pro, MoneyTree,
Cheshire, NaviPlan
? ?
Microsoft Dynamics N/A*
? ?
Pareto Platform MoneyGuidPro ?
Pivotal CRM N/A ? ?
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36
Vendors Out-of-the-Box Integration
Reseller
Agreements
Official
Partnerships
NexJ Contact for Finance NaviPlan, PlanPlus ? ?
Redtail CRM eMoney Advisor, Finance Logix,
MoneyGuidePro, cashflow
INSITE, Aralia
? ?
Salesforce for Wealth
Management
None
? ?
?: Available; ?: Not available.
*Integration would be performed through wealth management partners
Source: Vendors
ADOPTI ON OF EMERGI NG TECHNOLOGI ES
CRM ON MOBI L E DEVI CE S
Vendors provide mobile versions of their CRM application to allow advisors to access and update
client information while traveling or meeting with clients. With the advent of larger-screen tablet
devices such as the iPad, advisors will have an easier time accessing or updating client data while
on the road or in client meetings. Table N provides more details on vendors’ mobile capabilities.
Table N: Mobile Devices Supported
Vendors Devices with Mobile Apps
Customer Adoption of
Mobile Version
Mobile App.
Development
Partners
Junxure
Any smartphone or tablet
with Web browser
10% of customers
have mobile license
?
Microsoft
Dynamics
Any smartphone or tablet
with a Web browser (Mobile
Express)
Low % in financial
services
?
Pareto Platform
Any smartphone or tablet
with a Web browser
N/A ?
Pivotal CRM
RIM Blackberry, Apple
iPhone, iPad, iPod, Windows
Mobile
5% adoption
worldwide
?
NexJ Contact for
Finance
BlackBerry,
iPhone (roadmap)
Pilot phase ?
Redtail CRM
Windows Mobile, iPhone,
Blackberry
N/A ?
Salesforce for
Wealth
Management
iPhone, iPad, Blackberry,
Android*
N/A N/A
?: Available; ?: Not available.
*Chatter only; additional services available later in 2011.
Source: Vendors
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37
SOCI AL MEDI A ADOPTI ON
Advisors can glean important information about their clients and their relationships through
social media networking sites such as LinkedIn and Facebook. Table O shows which CRM
solutions integrate with clients’ social media sites. The table also shows which ones help advisors
build a presence on social networks. Advisor involvement with social media is still in its infancy
due to compliance restrictions and regulatory uncertainty over this form of communication.
Over time, however, wealth management firms will find ways to leverage social technology to
help advisors share valuable content with clients and generate prospects.
Table O: Social Media Integration
Vendors
Integration of Social Info. in Client
Record
Drafting & Posting to Social Media
Sites
Junxure ? ?
Microsoft Dynamics ? ?
Pareto Platform ? ?
Pivotal CRM ? ?
NexJ Contact for Finance ? ?
Redtail CRM ? ?
Salesforce for Wealth
Management
? ?
?: Available; ?: Not available.
Source: Vendors
CRM solutions that allow advisors to post social media content would also include content
approval workflow capabilities to ensure the content meets compliance guidelines.
PRI CI NG
Table P compares CRM solution pricing structures, the subscription fee for hosted solutions, and
the range of implementation costs. A couple of observations:
All SaaS solutions are priced on a per-user, per-month basis, except for Redtail,
which prices on a per-database, per-month basis. Databases can support up to 15
individuals.
Microsoft provides one standard offer for US$44, whereas Salesforce.com has five
offers, priced from US$5 to US$250 per user, per month, that provide customers
with differing degrees of customization and functionality. Salesforce.com for Wealth
Management is an Enterprise-edition solution and is priced at US$125 per user, per
month.
Implementation costs for standard enterprise solutions are likely to be more costly
than for solutions that include out-of-the-box wealth management functionality.
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Table P: CRM Solution Cost Comparisons
Vendors Pricing Structure
Subscription Fee for
Hosted Solution
Implementation Cost
Junxure Junxure (On-Premise Annual License)
Three expandable package
offers?Basic, Growing Firm, and
Enterprise; each includes Junxure
training
Expected in 2012
(pricing not yet
announced)
Junxure
Implementation
Services included in
Enterprise package, or
as US$3,900 option
Microsoft
Dynamics
Annual license and maintenance fee
for on-premise
Per-user, per-month fee for online
US$44 US$20,000 to several
million
Pareto
Platform
Per-user, per-month fee US$95 for
independent advisors
Enterprise fee to be
negotiated separately
N/A
Pivotal CRM Pivotal Enterprise?user fee, server,
and application fee
Pivotal SMB?flat fee based on users
Pivotal SaaS?monthly license fee per
user; hosting and management fees
based on firm sizes
License-only starts at
US$39 (hosting and
maintenance fees
separate)
US$15,000 to
US$450,000
NexJ Contact
for Finance
One-time, per-user fee for license
Per-user, per-month fee for hosted
(3-year term)
Firm would need to
contact NexJ
N/A
Redtail CRM Per month, per database (up to 15
users)
US$65
(includes up to 15
users)
N/A
Salesforce
for Wealth
Management
Per user, per month US$125 N/A
Source: Vendors and vendor websites
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39
VENDOR SELECTI ON
One of the most important decisions that wealth management firms should make when
selecting a CRM solution is whether they are looking for a solution that can be molded to fit
their needs or whether they are more interested in an out-of-the-box solution. The reality is that
solutions do not necessarily fall squarely in one camp versus another; Salesforce.com, for
example, is a highly malleable solution, but contains some wealth management capabilities as
well as integrations with leading wealth management platforms (e.g., Schwab). Pivotal CRM
includes strong wealth management functionality and is highly flexible, but the solution does not
currently integrate out-of-the-box with non-CRM wealth-management applications.
Other factors that wealth management firms should consider prior to diving into a detailed
feature/function comparison include the following:
Hosted vs. on-premise solutions: Firms must determine whether they want to own
and manage the application, server(s) and database(s) in-house, whether they want
to purchase the application but have it hosted on third-party infrastructure, or
whether they want to access the application via the Web on a subscription basis
(SaaS). Firms that seek to leverage SaaS solutions must ensure that they have access
to high-bandwidth internet connections in order to maximize the solution’s
performance.
Scalability: Large and growing firms need to ensure that the solutions can handle
large numbers of concurrent users. Solutions such as Dynamics, NexJ, and
Salesforce.com are proven solutions for large firms.
Ability to meet the needs of multiple groups within the same organization:
Particularly for midsize and large organizations, solution should include
administrative capabilities that allow firms to tailor screens and access functionality
and fields based on user role or group.
Table Q provides Aite Group’s opinions on best-in-class solutions by firm size. We also
differentiate solutions that are highly flexible from those that are less so, but have strong wealth
management capabilities in terms of functionality and wealth management technology partners.
Table Q: Best-in-Class Solutions
Firm Size Flexibility Wealth Management Capabilities
Large Microsoft Dynamics NexJ Contact for Finance
Medium Pivotal CRM
Small Salesforce.com Redtail CRM
Source: Aite Group
We recommend Microsoft Dynamics for large firms seeking to customize a CRM solution to meet
their unique functionality and technology needs. Numerous technology partners with wealth
management experience have built customized versions of Dynamics for wealth management
firms. Microsoft Dynamics also provides large firms with the choice of three deployment options
?on-premise, managed, and cloud-based?which can be particularly appealing to larger firms
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that may have internal groups with different deployment preferences. Salesforce.com is of
course a solid contender in the large-firm marketplace, but the solution may not be a good fit for
all large firms given the SaaS-only deployment option and the limitations that come with the
solution (i.e., 1,000 workflows), which large firms could exceed. Salesforce.com’s Force.com
platform is also a contender for the enterprise spot, given that Force.com provides large firms
with the tools to build and deploy their own CRM solution from a cloud environment.
Large firms looking for prebuilt wealth management capabilities should consider NexJ. The firm
has built considerable experience implementing CRM solutions at very large wealth
management firms, and understands their data-integration challenges.
For midsize firms, we recommend Pivotal CRM. This solution is currently in place at several
midsize and larger wealth management firms, including Brown Brothers Harriman, where it is
used to manage and automate account opening among other client processes. In addition to
containing powerful wealth-management-specific functionality, the solution is highly
configurable and customizable, and continues to become easier to configure by end users
directly. A vendor to watch in this category is Pareto Platform. The solution is still new to the
market, but its ability to tightly integrate best-practice teaching with enabling tools is unique and
valuable. Many advisors could benefit from a structured solution like Pareto’s, which enforces
sales and service best practices through a predefined client segmentation methodology and
workflow templates.
Finally, small firms should look to Salesforce.com for a solution that they can mold to meet their
unique practice needs without investing significant amounts of money and time on
customization and application integration. Salesforce.com includes multiple pricing options and
solution bundles to meet the needs of firms of all sizes. Salesforce for Wealth Management is
one of the more expensive solutions, which is why we recommend Salesforce.com more
generically for smaller advisors, who may not have the budget for the wealth management
edition. Schwab advisors who elect to integrate Salesforce for Wealth Management with its
PortfolioCenter solution receive a 20% price reduction.
Small firms that are looking for a practical and easy-to-use wealth management CRM solution at
a low price point should consider Redtail. This solution requires no hardware investments and
provides the most straightforward user interface and functionality of all solutions reviewed.
Junxure is also a strong solution in this space, but the firm does not currently offer a SaaS
deployment (expected in 2012), which is increasingly the deployment option of choice for small
firms that lack the technology budget or resources to manage an application in-house.
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41
VENDOR PROFI LES
CDC SOFTWARE
SOL UTI ON BACKGROUND
CDC software owns more than 20 front- and back-office enterprise software firms that were
acquired over the last 10 years and which continue to operate as independent companies. CDC
software’s Pivotal CRM acquisition in 2004 was the firm’s first in the front-office space. Since the
acquisition of Pivotal CRM, CDC Software has acquired several additional front-office solutions,
including C360, an independent software vendor focused on building applications for Microsoft
Dynamics.
The Pivotal CRM application for wealth management was initially released in 2001, and is
currently in its sixth generation. The solution makes extensive use of Microsoft technology,
including the Office suite, SharePoint, and Visual Studio. The application has recently gone
through an extensive, five-year upgrade to adopt .NET-based Smart Client technology. Smart
Client Web applications combine the benefits of Web-based applications (remote access,
Internet access) with the advantages of a desktop application (a richer user interface, more
intuitive, access to the application while disconnected, and speed). Pivotal CRM provides a
number of out-of-the-box applications to provide a starting point for customer implementations,
exemplify industry best practices, and illustrate development best practices in building
applications on the Pivotal platform. These out-of-the box applications include the following:
Application Workflow
Contact Center
Customer Self-Service
Customer Service and Support
Data Quality Management
Document Management
Handheld for BlackBerry, Windows Mobile,
and iPhone
Marketing Automation
Partner Management
Sales Force automation (SFA)
Sales Methodologies
Social CRM
KEY STRENGTHS
Outlook Integration: Pivotal CRM states that its integration with Microsoft Outlook is so
strong that many advisors work solely in Outlook. Outlook is a native part of Pivotal, and it
allows advisors to right-click on any field within Outlook to view more detailed information
automatically linked and pulled from the Pivotal CRM system.
Client Data Management: The solution allows advisors to understand the full breadth of a
client’s family, personal, and business relationships. The relationship tree shows the client as
a member of a household, an employee of a firm, a consultant to an outside firm, etc. This
level of insight allows advisors to identify common traits between clients and determine, for
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example, with which organization or employer they may be able to generate additional
business through client referrals. In addition to relationship visualization the solution also
offer strong data-management capability. For example, users with data-management
permissions can easily identify duplicate records, as well as merge records and unmerge
them if they were, for example, merged in error.
Referrals management: For larger firms looking to generate cross-selling across lines of
business, Pivotal CRM has the ability to route referrals to other associates based on
geography, product, or client/prospect type. Associates can receive referrals on their
dashboard.
Workflow Automation: Pivotal CRM enables the creation of workflow templates that trigger
sequential activities. Tasks can be sent to individuals or departments once preceding tasks
have been completed. One of Pivotal’s clients integrates with FileNet to automate the
application process, from form-filling through electronic signature and document
management.
Integration with Social Media Sites: Pivotal CRM for wealth management enables advisors
to develop a social media presence to share ideas with clients and attract prospects. The
solution allows advisors to enter their comments directly in Pivotal CRM without having to
visit social media sites. Comments can also be routed to compliance officers for their review
prior to posting. In addition, advisors can integrate their clients’ social media presence into
the client record. The solution integrates Twitter, Facebook, LinkedIn, InsideView, and Google
Blogsearch.
F UTURE DEVEL OPMENTS
Pivotal 6 will continue to be enhanced with new capabilities that will focus on the following
features:
Enhanced data visualizations tools with multi-level drill-down capabilities
More tools to allow non-coders to customize complex workflow in the system through
configurations and visual tools
Choice of smart and thin clients (due in 2011) based on ASP.NET
Choice of code-based workflow and visual workflow (due in 2011) based on Workflow
Foundation
J UNXURE
SOL UTI ON BACKGROUND
Junxure’s vision is to impact the wealth management industry rather than to build CRM
technology. As a result, its CRM solution was designed to meet the specific productivity needs of
wealth management firms, and it includes out-of-the-box integrations with many of the non-
CRM applications that advisors already use. In addition, Junxure is currently being used by its
advisor customers to accomplish more than sales, marketing, and service management. Many
customers look to Junxure to manage any business process that needs to be coordinated and
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centrally tracked across multiple departments/individuals in order to meet audit, compliance,
regulatory, and client management requirements.
In addition to Junxure CRM, Junxure provides a client portal solution, ClientView, and a mobile
solution, Junxure Mobile. ClientView allows clients to securely share statements and other
documents with their advisors, and provides clients with updated information on their financial
portfolios.
Junxure is currently delivered as an on-premise software solution, and is built on a .NET platform
and SQL database. The firm is planning to deliver a cloud-based solution in 2012.
KEY STRENGTHS
Deep wealth management market knowledge: Junxure understands the needs of RIAs and small
broker/dealer firms and is entirely focused on enhancing its solution to meet the specific
productivity needs of these segments. In addition to the solution’s wealth management
orientation, the firm’s technical and training teams also understand the business. Many of
Junxure’s trainers were once advisors.
Training and technical support: Junxure is highly focused on ensuring that its clients get the
support they need to leverage the solution at its full potential. To accomplish this, Junxure
provides free and unlimited technical support and a suite of training options. In any industry,
training is a critical driver of CRM solution adoption. Junxure has found training to be so
important to its customers’ satisfaction with the solution that the firm now packages a training
program with the new Junxure license. Training services range from videos to implementation
services that involve guiding individuals through the process of setting up workflows,
deliverables, client lists, etc. to in-person training.
Prebuilt integration with wealth management platforms/solutions: Junxure has integrated its
solution out-of-the-box with a significant number of wealth management applications, including
portfolio management, data consolidation, document management/content management, and
financial planning solutions. In addition, the solution is tightly integrated with Schwab’s
PortfolioCenter platform.
Service management and workflow capabilities: Junxure includes the ability to automatically
assign “deliverables” to groups of clients or advisors (e.g., “A clients”). These deliverables can
include a time interval and frequency, and are automatically created in the advisor’s to-do list.
Junxure’s workflow tools allow advisors to create multi-step workflows. These workflows will
trigger open actions, which are then monitored through Junxure’s Actions dashboard. This
dashboard allows advisors and the office to keep track of open/pending actions at the client,
employee, and process levels.
F UTURE DEVEL OPMENTS
Junxure will announce a significant release in 2011 that will extend Junxure’s security features
and pave the way for significant third-party integrations.
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44
MI CROSOFT
SOL UTI ON BACKGROUND
Microsoft Dynamics CRM is highly flexible and can be adapted to meet the needs of customers in
any industry. Microsoft works with numerous, industry-focused partners to customize its
solution to meet the very specific needs of each firm. In North America, Microsoft Dynamics
CRM’s most important partners (managed partners) for the wealth management industry are
Salentica and Customer Effective. Salentica provides a wealth management version of Dynamics,
which includes client portfolio reporting and ongoing support for a hosted, on-site, or online
version of Dynamics. Other important global services partners include Avanade, Wipro, Veripark,
Podient, Exordia, and Ciber. Microsoft Dynamics client base is evenly split between large firms
that purchase enterprise licenses and small and midsize firms. Dynamics is currently being used
by several large wealth management organizations, including groups at Barclays, Alliance, Axa,
and ING. In the United States, Raymond James is a Dynamics customer worth noting.
As of January 2011, Microsoft Dynamics CRM is available globally through three deployment
options: on-premise, partner-hosted, and on-demand, through its cloud-computing
environment. Dynamics is Microsoft‘s first business solution deployed in the cloud, though the
firm has been delivering infrastructure through a cloud-computing environment for more than
15 years to enable anywhere access to email, contacts, calendars, and portals through its hosted
Exchange servers. The company claims it is the largest provider of cloud solutions worldwide,
with 500 million cloud users accessing its Web-based applications and online services (e.g.
Hotmail, Live Office, Calendar, Messenger, Xbox Live, Live for Mobile, Azure services and several
others). .
Microsoft relies significantly on its strong and large partner network to sell Dynamics. Microsoft
is involved in enterprise deals, but the firm will often rely on partners to reach small and midsize
firms. Microsoft Dynamics is akin to a car chassis in that can easily be molded to fit a particular
industry/customer. Multiple technology firms around the world base their business on reselling,
customizing, implementing, and supporting Microsoft Dynamics.
KEY STRENGTHS
Deployment choices: Microsoft Dynamics offers the unique ability to allow customers to adopt
different deployment options across the firm and change deployment options. For example, a
new Dynamics client has elected to start with Dynamics Online and then transition to an on-
premise solution once they obtain the budget to invest in the necessary
infrastructure/integrations.
Flexible and open development platform: Dynamics is highly customizable by customers and
third-party developers. Microsoft introduced “Solutions” in its 2011 CRM edition to allow both
internal and external developers to create customizations of Dynamics and easily share these
with other users. In addition to the solution’s flexibility, firms can take advantage of Microsoft’s
open-source, cloud-based development platform, Windows Azure, to build add-on solutions, or
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45
an entirely new CRM hosted solution if desired. Dynamics customers can also purchase add-on
applications through the Microsoft Dynamics Marketplace, which currently lists hundreds of
applications and services that are compatible with Dynamics.
Office-like functionality: Microsoft Dynamic’s interface is highly familiar to users of Microsoft
Outlook and/or Microsoft Office. Within Outlook, users can see Dynamics CRM areas as sub-
folders in Outlook mail folders. The newest 2011 edition of Dynamics includes a new streamlined
user interface with contextual ribbons (i.e., graphical functional options that are specific to the
selected tab), record pinning, and access to used lists. These additions minimize the number of
clicks needed to access functionality and information.
Workflow: Microsoft Dynamics CRM 2011 includes a strong workflow engine. The user interface
for creating workflows is straightforward and guides the user through the process of selecting
rule types, workflow objects and fields at every step of the process. In CRM 2011, Microsoft
introduced a new “Dialogs” feature that can guide service associates through a process or even a
conversation with a customer by collecting and processing information at every step and
returning suggested scripts, or prefilled emails/letters, etc.
Analytics and information visualization: Microsoft Dynamics CRM includes strong analytical
capabilities from SQL Server Analytics. Capabilities allow organizations to create, view, and
configure real-time dashboards. CRM 2011 includes a new feature called “Inline Visualization”
that allows users to instantly create charts and visualizations of their data.
F UTURE DEVEL OPMENTS
Microsoft Dynamic’s long-term product strategy is comprised of four core tenets:
Increasing the productivity of workers. Moving forward, the solution will continue
to focus on providing a CRM solution that allows organizations to maximize their
productivity.
Providing three deployment options (on-premises, partner-hosted, and on-
demand) for Dynamics and will focus on growing its share of the SaaS CRM market
through Microsoft Dynamics CRM Online 2011.
Promoting and enhancing its integration with Microsoft Outlook and the solution’s
Microsoft Office functionality.
Allowing an organization to maximize its existing Microsoft investment. Millions of
users around the world already use key Microsoft solutions such as Microsoft Office,
Microsoft SQL Server, Microsoft SQL Server Reporting and Analysis Services, Office
SharePoint Server, Microsoft Unified Communications, and Microsoft ERP products.
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46
NEXJ
SOL UTI ON BACKGROUND
NexJ was founded in 2003 by the former management team of Janna Systems , an e-business
solutions provider to the financial services industry, which was purchased by Siebel in 2000.
NexJ’s purpose is to deliver next-generation enterprise CRM capabilities to financial institutions.
The solution’s core offer is NexJ Contact for Finance. NexJ Contact for Finance integrates
enterprise CRM functionality with information from existing customer applications to provide
comprehensive customer knowledge across the enterprise. NexJ also provides additional CRM
and wealth management capabilities for a more comprehensive solution. These additional
capabilities are listed below:
Business Process Wizard for New Account
Opening & Account Maintenance
Portfolio Performance Reporting
Enterprise Schedule Synchronization for
Microsoft Exchange
Outlook email integration
Contact for BlackBerry
Business Intelligence and Analytics
Client Self-Service Portal for Finance
NexJ Model Server for in-house
deployments
NexJ Studio for in-house application
customization
The NexJ Application Framework is based on JEE technology, and runs on a variety of industry
standard platforms. NexJ partners with Deloitte, Accenture, Capgemini, CGI, SunGard, Thomson,
and other firms to deliver comprehensive enterprise solutions. Other key NexJ technology
partners include Microsoft and Research In Motion to enable the solution’s integration with
Microsoft Outlook and the deployment of NexJ Contact for BlackBerry.
KEY STRENGTHS
Wealth management domain expertise: NexJ’s solution was built to cater to the large financial
services firms. As a result, its standard functionality is tailored for the wealth management
industry, with specific functionality and workflows. The solution is currently used by two of the
largest wealth management firms in North America, including Wells Fargo Advisors.
Integration to external and proprietary systems: The NexJ framework is designed specifically to
support integration to both commercial and proprietary systems. The NexJ Integration Layer
provides the ability to make direct API calls to external systems, and supports Web Services,
SOAP, TCP/IP, and HTTP protocols for external applications to call into the NexJ Application
Framework. NexJ has developed integration to Siebel CRM, ThomsonOne, Dow Jones, NaviPlan,
PlanPlus, Broadridge, Portfolio Aid, and SunGard.
Comprehensive functionality: In addition to providing firms with comprehensive CRM
capabilities, the solution extends into financial data consolidation (including aggregation of
detailed holdings information), and portfolio performance reporting.
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CRM functionality differentiators include the following:
Relationship modeling and analysis: Clients are tied to households and can be
connected to advisors’ other clients, or connections, to represent different types of
relationships (e.g., accountant, board member, friend, etc.). In addition, client-level
information can be aggregated at various relationship levels; for example, calendars
and financial account information can be rolled up and viewed at different levels of
the relationship, including the household level.
Cross-selling capabilities: NexJ provides firms and end users with the ability to
generate client lists based on complex searches conducted through an easy-to-use
interface; search also encompasses financial account information at the asset-class
level so advisors can generate targeted lists (e.g., find clients with at least US$10,000
in cash balances and that have expressed interest in technology stocks).
Pre-integrated account opening workflow: NexJ’s New Account Opening process
automatically populates new account forms with customer information and
automates the approval process from routing forms for review to supporting a
feedback loop that tracks, resolves, and audits deficiencies.
F UTURE DEVEL OPMENTS
Future developments are concentrated in the following areas:
Enhancing the contact profile: Social media integration
Increasing personal and collaborative productivity: Enhancing reporting
functionality and enhancing integration with Microsoft Outlook and Exchange
Delivering closed-loop business process automation: Enhancing advisor onboarding
with a flexible import wizard
Providing one application, multiple channels: Mobile device support for iPad, iPhone, and
Android Devices; enhancements to BlackBerry client; and client self-service portal
enhancements
PARETO PLATFORM
SOL UTI ON BACKGROUND
Pareto Systems started out in the late 1990s as a practice management consulting firm to wealth
management firms of all sizes. The training and ongoing coaching they provide to their clients is
based on the Pareto principle: that 80% of sales come from 20% of clients. They teach advisors
to right-size their books to focus on clients that they want to work with. Pareto developed a
proprietary CRM solution in 2003 because the firm believed that none of the solutions available
at the time were capable of implementing the best practices they were teaching. In 2009,
Microsoft approached the firm to propose building a solution using Microsoft technology. Pareto
Platform is now a customized version of Microsoft Dynamics, with 8,000 users. The solution runs
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on the ASP.NET platform and has, until now, been deployed as a hosted solution. The application
runs from an IBM cloud-based data center and is optimized for high performance.
KEY STRENGTHS
Tight integration between best practices and enabling technology: Pareto Platform achieves
what many wealth management firms have attempted and failed to accomplish; most wealth
management firms try to enable their sales process in their CRM application, but instead create
a solution with so many fields and boxes to click on that it becomes impractical to use. Pareto
Platform has embedded best practices at the right level. Best practices are built-in at a high level,
leaving the details up to the financial advisor. For example, the solution provides a framework
for segmenting clients based on three criteria (Assets, Advocacy, and Attitude), but the advisor
can determine the specifics of this definition.
Service management: The solution includes an area for defining service activities for each client
tier. Best-practice service activities are defined for the advisor (e.g., birthday calls, semi-annual
meeting, 60-day call rotation, etc.), but the advisor ultimately decides on which of these
meetings to deliver to each client tier and at what level of frequency.
Workflow capabilities: In addition to the segmentation and service management functionalities,
the solution includes strong workflow capabilities. These are based on Microsoft Dynamics’s
workflow functionality, but include a custom-developed interface on top to help advisors better
visualize the high-level and detailed workflow steps. Pareto Platform includes best-practice
workflows to help advisors prepare for service meetings, onboard new clients, transfer assets,
prepare clients for retirement, etc.
F UTURE DEVEL OPMENTS
Pareto Platform is working on expanding the number of applications with which the solution
integrates to cover more of the advisor’s workflow.
REDTAI L TECHNOLOGY CRM
SOL UTI ON BACKGROUND
Redtail provides a suite of Web-based productivity solutions designed for small wealth
management firms that seek pre-integrated and outsourced technology solutions. In addition to
Redtail CRM, Redtail provides email services and archiving (through Zimbra), WORM-compliant
document management, and Redtail Mobile for CRM application access across any device.
Redtail just completed a rebuild of their CRM solution to simplify the user interface and
application’s performance (load time), and reduce the time it takes advisors to find and update
information.
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KEY STRENGTHS
Deep wealth management market knowledge: Over the years, Redtail has developed a strong
understanding of the needs of small-office advisors. This market focus helps Redtail evolve the
application to become more and more relevant to its user base every year. In addition to
gathering requirements and feedback from its advisors, Redtail has begun to create forums for
its advisors to share best practices with one another. The company has set up an online
community for its users where they can share best-practice workflows, for example.
Prebuilt integration with wealth management platforms/solutions: Redtail has numerous
wealth management integration partners that advisors are likely to be working with already. For
example, Redtail integrates Albridge’s data consolidation solution, which allows Pershing
customers to automatically access client account information from the Redtail CRM solution.
Firms that have integrated with Redtail for automated data imports are financial planning tool
MoneyGuidePro and content management provider, and form management/filling provider
Laser App.
Dashboard and consistency of user interface: Redtail’s dashboard provides advisors with access
to a comprehensive view of daily and short-term activities (e.g., opportunities, reminders for the
next month). The dashboard boxes can easily be collapsed/expanded, and advisors can add
activities and opportunities right in the dashboard, which allows them to get more done from
one screen. Redtail’s dashboard is applied consistently through the solution, and is used to view
information at the client, household, and employer levels.
Cost-effective solution: Redtail ranks high on business value. Its solution is relatively
comprehensive, and Redtail charges less than its direct competitors. A 15-person firm would pay
less than US$4.5 per user, per month.
Search and list development: Redtail allows users to easily create new fields to categorize clients
and activities. This allows advisors to create client lists off many different criteria and to then use
these lists for communications, opportunity identification, or service management purposes. In
addition, advisors can select a subset of clients based on search capabilities, create a “tag” for
these groups, and access these from anywhere in the application.
F UTURE DEVEL OPMENTS
Redtail will continue to focus on increasing advisor productivity with its solution by, for example,
adding automated workflow triggers and using email to send reminders or task alerts. In
addition, Redtail is focusing on training its users through classroom workshops taking place in
multiple U.S. cities throughout 2011.
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SALESFORCE. COM
SOL UTI ON BACKGROUND
Salesforce.com was founded by a former Oracle executive in 1999 to create the first sales,
service, support, and marketing automation solution to bring the power of the Internet to
enterprise technology based on a cloud-computing infrastructure. Today, the firm generates
more than one and a half billion dollars in revenue and has close to 100,000 global customers,
including some of the largest global firms, such as Merrill Lynch and the Japan Post Network
(around 130,000 subscribers).
Cloud computing provides firms with a complete technology solution, on-demand, without their
needing to know the physical location of the technology environment or the configuration of the
system that delivers the services. Customers share the application and infrastructure, which
allows large and small firms to benefit from the same level of scalability and security.
Salesforce.com’s first cloud solution (also known as Cloud 1) delivered traditional sales and
service automation tools (contact, opportunity, activity management, etc.) to businesses.
Salesforce.com’s second-generation cloud solutions embrace trends set by Facebook, Twitter,
YouTube, and other social media outlets to make information more accessible and easy to
“follow.” Salesforce.com launched Service Cloud 3 in February 2011; it allows customers to
monitor their customers’ social media sites and create cases to respond to any customer posts.
KEY STRENGTHS
Scalability and security: Because the infrastructure and application costs are shared by more
than 100,000 customers, the firm has the resources to ensure these are scalable and secure. This
means that customers can grow their number of users quickly without seeing any impact on
performance.
Non-intrusive application updates: In addition, customers benefit from applications updates
and new releases three times per year, which they can take advantage of if they want, when they
want, and without disrupting their business.
Force.com platform and developer network: Salesforce.com runs on the Force.com open
development platform, which is easily accessible to developers. Many of Salesforce.com’s
300,000 developers have built add-on applications to Salesforce.com and made them available
for sale on Salesforce.com’s AppExchange. With one online payment, customers can purchase
add-on applications and enhance their version of Salesforce.com. Recently, Salesforce.com
announced the launch of Appforce and Siteforce. These solutions allow firms of all sizes to easily
create new applications and sites and access these from a cloud-computing platform. These
tools provide firms with infinite application flexibility at a lower price point, compared with
traditional application development and hosting.
Chatter and collaboration: Salesforce.com takes modern, Internet-based collaboration
technology and makes it work for businesses. Salesforce.com’s Chatter functionality allows users
to follow each other as well as groups, documents, and specific data fields contained within the
application. Updates to this information are pushed to users across multiple devices (iPhone,
Android, PC, etc.), similar to modern social networking tools.
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Workflow, Know Your Customer (KYC)-specific: Salesforce.com provides extensive workflow
capabilities, starting in its Enterprise edition. Customers can create immediate workflows and
time-based workflows (e.g., workflows start after a specific time has lapsed). Workflows can
trigger email alerts, tasks, field updates, and outbound SOAP messages sent to external
applications. To get customers familiar with how to apply these capabilities in wealth
management, the wealth management edition comes pre-integrated with a KYC workflow
capability. The separate KYC screen allows advisors/wealth management professionals to submit
client records for review/approval. In addition, customers can easily integrate external data
sources as needed using Web services to complete KYC requirements.
F UTURE DEVEL OPMENTS
Salesforce.com innovates at a rapid pace and releases enhancements at least three times per
year. At a strategic level, the firm is highly focused on commercializing its cloud-computing
platform to grow its business, and will be very focused on realizing the success of its Appforce
and Siteforce solutions.
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52
CONCLUSI ONS
A confluence of factors is driving strong growth in CRM investments from wealth management
firms. Financial advisors need CRM technology today more than ever before to help them
compete against online brokerage firms and full-service firms and deliver a superior client
experience while optimizing the time they spend with each client. At the same time, CRM
solutions are more attractive and cost-effective today than they were 10 years ago. Functionality
is easier to change today, and new workflow capabilities provide firms with significant value, as
they can manage and monitor all client-related processes from one application.
In addition to improvements in technology, vendors and wealth management firms have realized
that technology implementations must be supported by process and technical training to ensure
advisors understand the best practices that their new tools are intended to enable. The report
discussed the emphasis that Junxure and Pareto Platform place on teaching advisors how to use
the solution based on best practices. From the firm perspective, we should mention TD
Ameritrade’s success with its Practice Management group, composed of 40 business consultants
who serve the needs of 4,800 RIAs.
3
Advisors can leverage this group to help them map out their
business processes and automate these through their CRM tool’s workflow capabilities. TD
Ameritrade claims that advisors who have worked with its Practice Management consultants
have grown their assets under management by 19% (advisors that did not leverage Practice
Management resources only grew 9%).
Wealth management firms that can implement process and technology changes simultaneously
through a tool that advisors find easy to use are well positioned to generate significant value
from their CRM investments.
1. Interview with Mike Watson, TD Ameritrade Practice Management, and “Starting the Case for
Practice Management,” Financial Planning.com, February 4, 2011.
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53
RELATED AI TE GROUP RESEARCH
The State of Banks’ Mass-Affluent Offerings: One Site Fits Some, January 2011.
Global Wealth Management Technology: Trends in Advice-led Selling, October 2010.
Evaluating Wealth Management Platforms: Financial Planning at the Core, September 2010.
The Next Generation of CRM in Retail Banking: Sense-and-Respond Marketing, June 2009.
CRM for Wealth Management: Approaching Total Practice Management April 2011
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54
ABOUT AITE GROUP
Aite Group is an independent research and advisory firm focused on business, technology, and
regulatory issues and their impact on the financial services industry. With expertise in banking,
payments, securities & investments, and insurance, Aite Group’s analysts deliver comprehensive,
actionable advice to key market participants in financial services. Headquartered in Boston with
a presence in Chicago, New York, San Francisco, London, and Milan, Aite Group works with its
clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they
remain at the forefront of industry trends.
AUTHOR I NFORMATI ON
Sophie Schmitt
+1.617.338.6002
[email protected]
CONTACT
For more information on research and consulting services, please contact:
Aite Group Sales
+1.617.338.6050
[email protected]
For all press and conference inquiries, please contact:
Patrick Kilhaney
+1.718.522.2524
[email protected]
For all other inquiries, please contact:
[email protected]
doc_450016274.pdf
Compared with the customer relationship management (CRM) solutions of the 1990s and early 2000s available worldwide, today's Web-accessible, service-oriented CRM solutions enable firms to integrate more of their client data (e.g., financial data and documents), access this information from more devices/locations, share this information with more colleagues and divisions, and use this information to manage and automate critical practice activities beyond sales and services.
© 2011 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited. Photocopying or electronic distribution of
this document or any of its contents without prior written consent of the publisher violates U.S. copyright law, and is punishable by statutory damages
of up to US$150,000 per infringement, plus attorneys’ fees (17 USC 504 et seq.). Without advance permission, illegal copying includes regular
photocopying, faxing, excerpting, forwarding electronically, and sharing of online access.
CRM for Wealth Management:
Approaching Total Practice Management
APRIL 2011
Sophie Schmitt
CRM for Wealth Management: Approaching Total Practice Management April 2011
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2
TABLE OF CONTENTS
IMPACT POINTS .............................................................................................................................................. 5
INTRODUCTION .............................................................................................................................................. 6
OVERVIEW OF VENDORS........................................................................................................................... 8
CRM MARKET OVERVIEW ............................................................................................................................... 9
NORTH AMERICAN INVESTMENT DRIVERS ............................................................................................. 11
NORTH AMERICAN SPENDING FORECAST .............................................................................................. 12
WEALTH MANAGEMENT CAPABILITIES AND FLEXIBILITY ............................................................................. 15
WEALTH MANAGEMENT CAPABILITIES................................................................................................... 15
FLEXIBILITY .............................................................................................................................................. 16
CUSTOMIZATION AND APPLICATION DEVELOPMENT ...................................................................... 16
PARTNERSHIPS .................................................................................................................................. 18
HOSTED VERUS ON-PREMISE ............................................................................................................ 19
DETAILED VENDOR COMPARISON ................................................................................................................ 21
CENTRALIZING CLIENT INFORMATION .................................................................................................... 21
FINANCIAL DATA INTEGRATION ........................................................................................................ 21
MICROSOFT OUTLOOK INTEGRATION ............................................................................................... 23
DOCUMENTS ..................................................................................................................................... 25
INFORMATION ANALYSIS & SEARCH ....................................................................................................... 26
CLIENT RELATIONSHIP MODELING .................................................................................................... 26
ADVISOR DASHBOARD ...................................................................................................................... 28
SEARCH .............................................................................................................................................. 30
IMPLEMENTING SALES & SERVICE BEST PRACTICES ............................................................................... 30
PIPELINE MANAGEMENT ................................................................................................................... 30
CLIENT SEGMENTATION .................................................................................................................... 30
SERVICE MANAGEMENT .................................................................................................................... 31
MARKETING & COMMUNICATIONS .................................................................................................. 32
WORKFLOW TOOLS ................................................................................................................................. 33
CROSS-APPLICATION WORKFLOW: FINANCIAL PLANNING ..................................................................... 35
ADOPTION OF EMERGING TECHNOLOGIES ............................................................................................ 36
CRM ON MOBILE DEVICES ................................................................................................................. 36
SOCIAL MEDIA ADOPTION ................................................................................................................. 37
PRICING ................................................................................................................................................... 37
VENDOR SELECTION ..................................................................................................................................... 39
VENDOR PROFILES ........................................................................................................................................ 41
CDC SOFTWARE....................................................................................................................................... 41
JUNXURE ................................................................................................................................................. 42
MICROSOFT ............................................................................................................................................. 44
NEXJ ....................................................................................................................................................... 46
CRM for Wealth Management: Approaching Total Practice Management April 2011
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3
PARETO PLATFORM ................................................................................................................................ 47
REDTAIL TECHNOLOGY CRM ................................................................................................................... 48
SALESFORCE.COM ................................................................................................................................... 50
CONCLUSIONS .............................................................................................................................................. 52
RELATED AITE GROUP RESEARCH ................................................................................................................. 53
ABOUT AITE GROUP...................................................................................................................................... 54
AUTHOR INFORMATION ......................................................................................................................... 54
CONTACT ................................................................................................................................................. 54
LI ST OF FIGURES
FIGURE 1: CRM SOLUTION AVAILABILITY BY WEALTH MANAGEMENT INDUSTRY SUB-SEGMENT ................ 6
FIGURE 2: CRM SPENDING APPETITE?ADVISOR PERSPECTIVE ..................................................................... 7
FIGURE 3: CRM ADOPTION VS. ADVISOR INCLINATION TO INVEST IN SOLUTION ......................................... 7
FIGURE 4: GEOGRAPHIC PRESENCE BASED ON CUSTOMER PERCENTAGES ................................................. 12
FIGURE 5: NORTH AMERICAN WEALTH MANAGEMENT CRM TECHNOLOGY SPENDING ............................. 12
FIGURE 6: SOLUTION COMPARISON, OUT-OF-THE-BOX WEALTH MANAGEMENT CAPABILITIES ................ 15
FIGURE 7: WEALTH MANAGEMENT CUSTOMERS BY INDUSTRY SUB-SEGMENT ......................................... 16
FIGURE 8: HOSTED VS. ON-PREMISE DEPLOYMENTS (AS OF YEAR-END 2010) ............................................ 19
FIGURE 9: FLEXIBILITY VS. WEALTH MANAGEMENT CAPABILITY MATRIX ................................................... 20
FIGURE 10: ADVANCED APPLICATIONS OF CRM SOLUTIONS IN WEALTH MANAGEMENT .......................... 21
FIGURE 11: NEXJ FINANCIAL ACCOUNTS SCREEN ......................................................................................... 23
FIGURE 12: SCREENSHOT OF PIVOTAL CRM CONTACT SCREEN AVAILABLE THROUGH MICROSOFT
OUTLOOK ............................................................................................................................................ 25
FIGURE 13: NEXJ AND PIVOTAL CRM RELATIONSHIPS TREES ....................................................................... 27
FIGURE 14: SALESFORCE.COM DASHBOARD DEVELOPMENT....................................................................... 28
FIGURE 15: REDTAIL CRM DASHBOARD........................................................................................................ 29
FIGURE 16: JUNXURE ACTIONS DASHBOARD ............................................................................................... 29
FIGURE 17: SCREENSHOT OF PARETO PLATFORM’S SERVICE MANAGEMENT TOOLS ................................. 31
FIGURE 18: SCREENSHOT OF PIVOTAL CRM CALL PLAN TEMPLATE ............................................................. 32
FIGURE 19: PARETO PLATFORM WORKFLOW CAPABILITIES ........................................................................ 35
LIST OF TABLES
TABLE A: OVERVIEW OF CRM VENDORS ........................................................................................................ 9
TABLE B: KEY CRM INVESTMENT DRIVERS?VENDOR CUSTOMERS ............................................................. 11
TABLE C: CRM SPENDING AND GROWTH RATE ESTIMATES BY FIRM SIZE?NORTH AMERICA .................... 14
TABLE D: APPLICATION DEVELOPMENT CAPABILITIES ................................................................................. 17
TABLE E: OVERVIEW OF KEY VENDOR PARTNERS AND PARTNER-DRIVEN SALES ........................................ 18
TABLE F: FINANCIAL DATA INTEGRATION CAPABILITIES: OUT-OF-THE-BOX INTEGRATION ......................... 22
CRM for Wealth Management: Approaching Total Practice Management April 2011
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4
TABLE G: MICROSOFT OUTLOOK EMAIL INTEGRATION CAPABILITIES ......................................................... 24
TABLE H: DOCUMENT MANAGEMENT CAPABILITIES ................................................................................... 26
TABLE I: CLIENT RELATIONSHIP MODELING CAPABILITIES ........................................................................... 27
TABLE J: CLIENT SERVICE MANAGEMENT AUTOMATION (OUT-OF-THE-BOX) ............................................. 31
TABLE K: EMAIL MARKETING CAPABILITIES OUT-OF-THE-BOX..................................................................... 33
TABLE L: MULTI-STEP WORKFLOW AUTOMATION (OUT-OF-THE-BOX FUNCTIONALITY) ............................ 34
TABLE M: INTEGRATION WITH FINANCIAL PLANNING APPLICATIONS ......................................................... 35
TABLE N: MOBILE DEVICES SUPPORTED ....................................................................................................... 36
TABLE O: SOCIAL MEDIA INTEGRATION ........................................................................................................ 37
TABLE P: CRM SOLUTION COST COMPARISONS ........................................................................................... 38
TABLE Q: BEST-IN-CLASS SOLUTIONS ........................................................................................................... 39
CRM for Wealth Management: Approaching Total Practice Management April 2011
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5
I MPACT POINTS
Advisors need to up their game in a post-crisis environment in which clients have
grown more risk-averse and seek more control over their investments, compared to
pre-crisis years. To avoid losing clients, advisors must enhance the level of service
they provide while ensuring their service model is profitable. Advisors need
customer relationship management (CRM) technology more than ever to help them
manage the increased number of client activities in the most efficient and strategic
way.
CRM solutions today have improved compared to 10 years ago. Data is easier to find,
analyze, share, and access from any device. The functionality is easier for end users
to change, which allows firms to establish a stronger fit between process and
enabling technology. In addition, new workflow capabilities provide firms with
significant value, allowing them to manage and monitor all client-related processes
from one application.
With the advent of cloud computing, solutions are now more cost-effective, which
allows small wealth management firms to afford enterprise class CRM technology
Given the confluence of factors driving CRM investments in the wealth management
industry, Aite Group estimates that North American wealth management firms will
grow spending by 8% over the next five years from approximately US$460 million in
2010 to US$620 million in 2014.
The two most important factors for wealth management firms to consider when
selecting a CRM solution are its flexibility and its wealth management capabilities.
Highly malleable solutions are not likely to have the most pre-integrated wealth
management functionality and applications.
In this report, Aite Group profiles seven CRM solutions with differing strengths:
Junxure and Redtail, two solutions designed for small wealth management
firms
Microsoft Dynamics, an industry-agnostic solution that Microsoft wealth
management-focused partners can easily customize
NexJ, a solution built to address the data integration and functionality needs of
large wealth management firms
Pareto Platform, a highly customized version of Microsoft Dynamics that
embeds best practices taught by Pareto’s consulting group
Pivotal CRM, a flexible solution with prebuilt wealth management sales and
service capabilities
Salesforce for Wealth Management, the leading cloud CRM solution
CRM for Wealth Management: Approaching Total Practice Management April 2011
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6
I NTRODUCTION
Compared with the customer relationship management (CRM) solutions of the 1990s and early
2000s available worldwide, today’s Web-accessible, service-oriented CRM solutions enable firms
to integrate more of their client data (e.g., financial data and documents), access this
information from more devices/locations, share this information with more colleagues and
divisions, and use this information to manage and automate critical practice activities beyond
sales and services. While many large and small wealth management firms are starting to take
advantage of these newer solutions, a significant number continue to manage client contacts
and activities through Microsoft Outlook/Office or basic desktop contact management tools.
Aite Group’s 2011 survey of 380 financial advisors revealed that almost a quarter of survey
participants either do not have a CRM solution or do not find the solution applicable to their
business. Figure 1 shows a breakdown of CRM availability metrics by type of financial advisor.
Figure 1: CRM Solution Availability by Wealth Management Industry Sub-Segment
Source: Aite Group Q1 2011 survey of 380 financial advisors
Figure 2 illustrates financial advisors’ level of interest in improving their CRM solution; we asked
financial advisors to allocate a hypothetical budget across various applications commonly used in
an advisor’s office (CRM, financial planning, portfolio management, etc.). Figure 2 shows the
amount allocated toward CRM applications.
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7
Figure 2: CRM Spending Appetite?Advisor Perspective
Source: Aite Group Q1 2011 survey of 380 financial advisors.
Overall, 45% of financial advisors would spend some amount to improve their solution. Financial
advisors who already work with a CRM solution are evenly split between those who would
improve the solution through investments and those who are satisfied with their solution (Figure
3). Interestingly, more than one-third of advisors who do not currently have a CRM solution
available to them would invest in a CRM solution if they had the budget to do so. Several of
these advisors are ready to spend more than 25% of a hypothetical budget on this solution.
Figure 3: CRM Adoption vs. Advisor Inclination to Invest in Solution
Source: Aite Group Q1 2011 survey of 380 financial advisors.
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8
Among firms with CRM solutions, many have yet to realize its intended return on investment in
the form of time savings or revenue growth. Large and midsize wealth management firms, in
particular, have faced two primary challenges with CRM solution investments:
Low user adoption:
Solutions are often viewed as too cumbersome by advisors, who are often
required to fill out myriad fields with every client activity record for the
purpose of providing management with greater transparency into advisor
productivity.
In addition, many advisors have resisted relinquishing control over their client
lists and information; advisors tend to view clients as theirs and not the
property of their firm, and they want to ensure that they can take their clients
with them if they leave.
Narrow use of the solution:
While firms may intend to purchase a CRM solution for more than contact
management, most firms remain on their journey toward achieving significant
process automation with their CRM solution, particularly due to the technical
and personnel challenges involved with standardizing the way hundreds or
thousands of individuals perform the process.
Despite the challenges to CRM adoption mentioned above, Aite Group believes that many CRM
solutions have used lessons learned from the past decade to re-work their solutions. Solutions
today are easier to use, and include sales and service best-practice functionality that end users
(or administrators) can more easily configure on their own to fit their firms’, or internal groups’,
unique practices. In addition to greater ease of use and end-user functionality, solutions today
include workflow tools that allow advisors and firms to gain greater control of their processes.
Finally, solutions are cheaper today than in the past thanks to the advent of Software as a
Service (SaaS), which allows advisors to access the functionality they need from their browser
without purchasing and maintaining hardware and software assets.
We believe that an increasing number of advisors and wealth management firms will take a fresh
look at CRM solutions, once viewed as too expensive or complex, in their search for a solution
that will help advisors better manage client processes.
OVERVI EW OF VENDORS
In this report we profile seven of the most important North American CRM vendors whose sole
focus is client relationship management software and who offer wealth management-specific
CRM solutions either natively or through partners.
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9
Table A: Overview of CRM Vendors
Name CRM Solution
Release
Year
Fin. Inst. Customers
/% Wealth Mgt
Avg. WM
Implementation (Users)
CDC Software
Pivotal CRM 2001 400/13% 500
Junxure
Junxure 1998 1,300/100% 7
Microsoft
Dynamics 2005 500/20% 100
NexJ
NexJ Contact for
Finance
2006 13/77% 8,300
Pareto Systems
Pareto Platform
Powered by
Microsoft
Dynamics CRM
2010 8,000 users/100%
5 – small firms
5,000 – large firms
Redtail
Technology
Redtail CRM 2003 27,000/100% Small firms
Salesforce.com
Salesforce for
Wealth
Management
2007 Over 5,000/N/A N/A*
*Even number of large, medium and small customers.
Source: Aite Group
The following players were invited to participate in our research study, but declined to respond
to our request for information:
Ebix
Oracle (Seibel)
The Sage Group (Sage Act!)
Seeking to better understand how the CRM capabilities of these providers compare to those of
pure-play solutions, we also spoke with several wealth management technology providers (and
their customers) that provide a CRM solution as part of a wealth management platform:
Advice America (Client Vision), part of Fiserv
Focus Solutions (Focus:360
0
)
Polaris (Intellect Wealth)
Tamarac (Advisor X CRM)
Temenos (WealthManager), formerly known as Xeye
Customers who leverage these solutions value the complete integration that exists between the
financial planning application and / or the portfolio management application. The depth and
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10
breadth of CRM functionality varies more across these solutions compared with pure-play
solutions. Focus Solutions and Temenos currently offer the most wealth management-specific
functionality, including workflow capabilities. We will discuss these platform vendors in more
detail in future research reports.
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11
CRM MARKET OVERVI EW
NORTH AMERI CAN I NVESTMENT DRI VERS
CRM vendors included in this report reported strong revenue growth in 2010 and anticipate
continued robust growth for 2011. Based on an aggregation of vendors’ actual and estimated
revenue, we estimate that CRM-driven revenue rose by almost 20% between 2009 and 2010 for
the vendors covered in this report. Aite Group’s recent primary research in the bank wealth
management space validates that this market is active and growing. More than 40% of 19 top
100 North American banks interviewed in Q4 2010 had either just finished a CRM
implementation, were about to embark on such a project, or were considering investing in a new
CRM solution for their brokerage firm or mass-affluent organization. Many banks are looking to
leverage Web-based solutions to enable cross-department collaboration while avoiding costly
implementations and maintenance fees. For example, a wealth management team might consist
of a commercial banker, a private banker, and a financial advisor; they would all need to access
one calendar and set of client information. Enabling this type of cross-department collaboration
through an internal system would be technically challenging and costly.
Table B highlights in more detail some of the primary CRM investment drivers from a group of
customers that are looking to achieve more than contact and calendar management. Many of
the firms look to their CRM solution to do the following:
Provide a unified view of customer information
Drive consistent adoption of sales and service best practices across the sales force,
and
Automate business processes or workflows
Table B: Key CRM Investment Drivers?Vendor Customers
Firm Type Solution Since Dominant Reason for Selection
Small broker/dealer Pareto Platform 2010 Manage client service activities
Large bank Dynamics 2010 Enable new advisory process
Wirehouse NexJ 2009 Customer data integration to get to holistic view
RIA Junxure 2007 Compliance workflow management
RIA Redtail 2007 Manage client service activities
RIA Salesforce.com 2006 Flexibility to adopt to custom firm processes
Independent
broker/dealer
Tamarac 2002 Portal to portfolio and client information
Large credit union Pivotal CRM 1999
Manage client experience and workflow at point
of contact*
*Key reason for staying with the same provider for more than a decade Source: Aite
Group interviews with vendor clients
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12
NORTH AMERI CAN SPENDI NG FORECAST
Except for Pivotal CRM and Microsoft Dynamics, vendors derive the majority of their wealth
management revenue from North America (Figure 4).
Figure 4: Geographic Presence Based on Customer Percentages
Source: Vendors
We estimate total North American wealth management CRM spending was approximately
US$460 million in 2010. We project spending will grow to US$620 million over the next five
years, at a compounded annual growth rate of 8% (see Figure 5).
Figure 5: North American Wealth Management CRM Technology Spending
Source: Aite Group, vendors, company financial statements, press releases
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13
We discuss a few of the key investment drivers below:
1. Availability of easier-to-use CRM solutions: Up until now, a majority of advisors has mostly
avoided using CRM solutions in favor of easier-to-use and more economic tools, such as
Microsoft Outlook and Goldmine. CRM solutions have re-tooled their applications recently
to offer simpler user interfaces and easier-to-use functionality at a lower price point
compared to solutions available in the past. In addition, because most CRM solutions now
synchronize with Microsoft Outlook, advisors will feel more confident moving to a new
environment that retains familiar functionality.
2. Advisors need a solution that can do more than store contacts/events: Advisors face
significant competition from full-service and online brokerage firms. In order to compete,
advisors must provide clients with a differentiated client experience. In addition to making
every client interaction valuable for the client, advisors must also ensure that their most
valuable clients receive more of their attention. CRM solutions can help advisors manage
their service activities strategically and they can help advisors and their staff prepare for
every type of interaction. In addition to spending more time on service activities, advisors
are likely to spend more time performing and tracking client-related compliance activities.
The new fiduciary standard that is expected to materialize over the next year will require
more documentation over the sales process. Solutions that can help advisors automate and
track key client activities related to sales, service, marketing, and compliance will become
more critical.
3. Availability of SaaS/cloud solutions:
1
Wealth management firms of all sizes have been
adopting SaaS solutions for technical and business reasons. On the technology side, more
and more business are recognizing the cost benefits of outsourcing IT applications and
infrastructure to firms that specialize in these areas. Another business driver of cloud
solutions that can provide both computing platforms and Applications as a Service (i.e.,
Microsoft and Salesforce.com) is the ability to take advantage of new innovations in
consumer, sales, service, and marketing technology more quickly compared to solution
platforms that reside in-house. These benefits will drive a market share shift from software
solutions to SaaS or cloud-computing-based solutions. In addition, adoption of cloud
solutions is likely to grow CRM spending. As more and more advisors adopt cloud solutions,
they are likely to add applications/enhancements, which will drive up monthly user fees.
We estimate that spending on cloud-based and SaaS solutions will grow at a faster rate (on the
order of 15% CAGR) compared to spending on software, license-based solutions (approximately
6% growth). This trend will change the mix of spending across application, maintenance, and
professional services and internal IT. As a result of the stronger growth in spending on
outsourced solutions, application spending will rise steadily as a percentage of total spending,
while maintenance and internal IT costs will decrease.
1. According to the National Institute of Standards and Technology (NIST), cloud computing is a model for enabling convenient,
on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage,
applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider
interaction.
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14
Professional services expenses will continue to represent a significant percentage (close to a
quarter) of CRM spending over the next few years as advisors spend to migrate data from their
existing solutions over to newer solutions, and as firms invest in application integration,
customization, and training.
CRM spending growth will be particularly strong among smaller firms where the majority of
advisors are leveraging Microsoft Outlook or a basic contact management solution (many
leverage Goldmine or Sage Act). More and more advisors will seek to switch to browser-based
solutions that can automate workflow and enable information access across the firm and across
devices. Sage Act may be able to retain a percentage of its client base, however, as the firm
recently launched a premium edition that includes workflow tools and Microsoft Outlook
integration and collaboration features (such as group scheduling) to better compete with firms
like Redtail and Junxure, which offer strong CRM solutions specifically geared to small wealth
management firms.
Table C provides estimates on spending growth rates by advisor firm size.
Table C: CRM Spending and Growth Rate Estimates by Firm Size?North America
Firm Size # of Advisors *
% of Total CRM
Spending
5-Year
CAGR
Large (over 2,000 advisors) 200,000 39% 6%
Medium (200-2,000 advisors) 250,000 42% 5%
Small (under 200 advisors) 200,000 19% 9%
Total 650,000 100% 8%
*Includes sales support staff.
Source: Aite Group
We expect large firms to increase spending on professional services in order to grow user
adoption through training or technical improvements. Finally, several large firms will replace
existing solutions to take advantage of newer and more cost-effective web-based and cloud-
based solutions. A significant percentage of medium-sized firms will look to increase
investments in advisor productivity tools in an attempt to become more competitive with large
and smaller firms. On the other hand we expect a significant percentage of medium-sized firms
to continue to make do with existing solutions due to insufficient technology budgets for non-
critical projects.
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15
WEALTH MANAGEMENT CAPABI LI TIES AND
FLEXIBI LI TY
WEALTH MANAGEMENT CAPABI LI TI ES
Figure 6 illustrates our comparison of specific solutions based on their out-of-the-box wealth
management capabilities.
Figure 6: Solution Comparison, Out-of-the-Box Wealth Management Capabilities
Source: Aite Group
Microsoft Dynamics CRM is highly flexible, and can be adapted to meet the needs of customers
in any industry. Microsoft works with numerous, industry-focused partners to customize its
solution to meet the very specific needs of each firm. In North America, Microsoft Dynamics
CRM’s most important partners (managed partners) for the wealth management industry are
Salentica and Customer Effective. Also representing Microsoft’s capabilities in the wealth
management space is Pareto Platform, a highly customized version of Dynamics that was built to
implement wealth management sales and service best practices taught by Pareto’s consulting
group. Dynamics is also the CRM offer that Tamarac has integrated with their portfolio
management solution to create an integrated wealth management platform.
Salesforce.com has a wealth management version that includes the key fields that advisors are
used to working with, such as areas for financial account balances and holdings data. The
solution also includes a separate Know Your Customer section that can be sent to compliance
officers for review/sign-off. Salesforce for Wealth Management customers include very large
wealth management organizations (Merrill Lynch, for example) and many small, one- and two-
person advisor offices.
Pivotal CRM and NexJ come with more advanced wealth management functionality out-of-the
box, such as the ability to visualize and analyze the full breadth of a client’s relationships (family,
professional, business). NexJ takes the relationship view a step further, allowing advisors to view
asset allocations at different levels of the relationship. In addition, NexJ has numerous wealth
management integration partners, allowing advisors to install a complete wealth management
solution out-of-the-box.
Pareto Platform provides the tools for advisors to segment their clients and automate client
service strategies in accordance with industry best practices that the firm also teaches through
advisor consulting and virtual coaching. Pareto currently integrates out-of-the-box with a few
key non-CRM wealth management applications.
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16
Solutions from Redtail and Junxure are made for small wealth management firms to keep track
of all client interactions and activities. A key investment driver in these solutions is not only sales
and service management, but also risk and compliance management. Because these solutions
tend to play a critical role for these small firms, their user adoption is relatively high and
customers are very involved with their vendor’s product development process. Over the years,
the applications have integrated the tools, fields, and views that make these solutions the most
ready to install out-of-the-box for small wealth management firms. In addition, these solutions
are integrated in one or more custodian platforms typically used by registered investment
advisors (RIAs), and they have already built integrations to several data-consolidation and
financial-planning applications.
Within the wealth management industry, we show in which sub-segments vendors participate
based on percentage of customers (Figure 7).
Figure 7: Wealth Management Customers by Industry Sub-Segment
Source: Vendors
FLEXI BI LI TY
CUSTOMI ZATI ON AND APPL I CATI ON DEVE L OPMENT
All of the solutions covered in this report can be customized to different extents (fields,
functionality) to fit an organization’s unique processes. Large and midsize customers are likely to
have the funds and the internal IT resources to perform the most extensive customizations and
integrate the solution with internal systems. As a result, solutions catering to larger firms have
built-in development tools to allow customers to modify the application or build and maintain
add-on capabilities.
Small firms have fewer technology resources and will seek a vendor that provides a solution that
they can work with off-the-shelf. Many RIAs and small broker/dealers choose to work with
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17
Redtail or Junxure for this reason. These solutions already come with best-practice fields, views,
and client workflows. In addition, Redtail and Junxure integrate out-of-the box with data
consolidation solutions (Albridge, Advisor Exchange, etc.) and one or two of the key custodian
platforms that RIAs leverage (Fidelity, Pershing, Schwab, or TD Ameritrade). Pareto Platform
teaches best practices and is used by advisors who want to adopt these practices. Thus,
customization of this solution is likely to be less necessary and/or desirable. In addition, Pareto
Platform can integrate out-of-the-box with Albridge for data consolidation.
Microsoft Dynamics and Salesforce.com allow end users/administrators to add custom objects
and fields. The solutions can also integrate with external data sources and applications using
Web services. What makes Salesforce.com known for being particularly flexible is its Force.com
open-source application development platform, which gives customers and its 300,000
developers the ability to quickly develop, test, and launch new applications that integrate with
Salesforce.com. This platform also allows customers to build entirely new cloud applications
through a new offering called Appforce. Developers can make their Salesforce.com add-on
applications available for sale through Salesforce.com’s App Exchange. For example, a popular
third-party application used by financial advisors and available through the AppExchange
website is Ribbit, a voice-to-text application that would allow an advisor to phone in notes from
a meeting and see those notes populated in Salesforce.com by the time they return to the office.
Thus, firms with limited development budget can more easily enhance their existing CRM
application by purchasing add-on solutions off-the shelf at a cheaper cost than would be hiring
developers to build the applications. Larger firms with more IT budget could, however, easily find
a Force.com developer to build customizations or integrate the solution with proprietary
applications.
Microsoft is catching up to Salesforce.com’s open development platform model with the launch
in 2009 of its cloud-based platform, Windows Azure, for business partners and customers. The
platform allows partners and customers to build new cloud applications or customized versions
of Microsoft Dynamics on the Azure platform. Partners can also sell add-on applications for
Dynamics through Microsoft’s application store, Microsoft Dynamics Marketplace.
NexJ and Pivotal CRM include application development toolkits with their solutions to allow
clients to add their own functionality. Pivotal CRM’s application development environment is
based on Microsoft Visual Studio, and allows clients to customize the out-of-the-box
functionality as well as build add-on applications. NexJ states that most of its customers will add
capabilities to the core solution rather than modify the core solution itself.
Table D: Application Development Capabilities
Solutions
Application
Development Tools
Open to Third-Party
developers
Application
Marketplace/Store
Junxure ? ? ?
Microsoft Dynamics ? ? ?
Pareto Platform ? ? ?
Pivotal CRM ? ? ?
NexJ Contact for
Finance
? ? ?
Redtail CRM ? ? ?
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18
Solutions
Application
Development Tools
Open to Third-Party
developers
Application
Marketplace/Store
Salesforce for
Wealth
Management
? ? ?
?: Available; ?: Partial, supporting only one or a few development languages (e.g., Java or .NET), ?: Not Available.
Source: Vendors, press releases, news articles
PARTNERSHI PS
Table E highlights profiled vendors’ most important wealth management and professional
services technology partners. In addition, we show the percentage of solution sales derived
directly from partners.
Solutions that are built for large enterprises work with many professional services partners on
application integration and, potentially, customization. These solutions tend to also resell their
solution through partners. Of all the vendors, Microsoft relies most on its partners for sales of
Dynamics. Microsoft is involved in enterprise deals, but the firm will often rely on partners to
reach small and midsize firms. Microsoft Dynamics is akin to a car chassis in that it can easily be
molded to fit a particular industry/customer. Multiple technology firms around the world base
their business on reselling, customizing, implementing, and supporting Microsoft Dynamics.
Salesforce.com is mostly sold directly by Salesforce.com representatives. Salesforce.com works
with many partners to develop add-on applications (available on the AppExchange). The firm
does depend on consulting firms and independent software vendors to resell the Force.com
platform by building or helping companies build cloud applications.
Table E: Overview of Key Vendor Partners and Partner-Driven Sales
Vendors
Key Wealth Management
Partners
Key Professional Services
Partners
% of Sales From
Partners
Junxure Numerous. Most
important: Schwab
Institutional
None cited 0%
Microsoft
Dynamics
Salentica, Customer
Experience
Accenture, Ascentium,
Avanade, Capgemini, EDS,
Infosys
95%
Pareto Platform Albridge, MoneyGuidePro None cited 0%
Pivotal CRM None cited Capgemini, CRMCulture,
Tokara Solutions
25%
NexJ Contact for
Finance
Glass Client Programs,
Portfolio Aid, SunGard
Accenture, Capgemini, CGI,
Deloitte, Headstrong,
SunGard
5%
Redtail CRM Numerous, including
Pershing
None cited 0%
Salesforce for
Wealth
Management
Schwab None cited Mostly direct from
Salesforce.com
Source: Vendors
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19
Solutions aimed at small wealth management firms are sold directly. Redtail and Junxure do not
allow partners to resell their solution today.
HOSTED VERUS ON- PREMI SE
The vendors profiled in this report deploy their solutions through the following methods:
SaaS-only deployments: Redtail CRM and Salesforce for Wealth Management only offer
solutions that reside off-site and can be accessed from any Web browser. Salesforce.com’s
application and infrastructure is more flexible than Redtail’s as it offers five different packages
priced on a per-user basis, whereas Redtail offers one solution priced per database (up to 15
users per database). Please see Table P for more pricing information.
Hybrid deployments: Pivotal CRM, NexJ, Microsoft Dynamics, Pareto Platform, and, soon,
Junxure (2012) offer two deployment options: one hosted and Web-based and the other on-
premise. To date, all Pareto Platform customers have a hosted solution. NexJ, by contrast, has
only deployed its solution at customer sites. Larger firms continue to prefer on-site deployment
options as they have the technology staff internally to maintain the application and manage
customer data security risks.
Microsoft Dynamics offers the unique ability to allow customers to adopt different deployment
options across the firm and change deployment options at any time. For example, a new
Dynamics client has elected to start with Dynamics Online and then transition to an on-premise
solution once they obtain the budget to invest in the necessary infrastructure/integrations.
While Junxure will launch its Web-based SaaS solution in 2012, several customers have already
implemented Junxure in a hosted environment by working with managed solutions providers,
including Amazon Elastic Compute Cloud and GoGrid.
Figure 8 illustrates how vendor customers have elected to deploy their solution, either on-
premise or in a hosted environment.
Figure 8: Hosted vs. On-Premise Deployments (As of Year-End 2010)
Source: Vendors
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20
Figure 9 provides a high-level categorization of CRM solutions based on their flexibility (ability to
customize, integrate, and add to) and their wealth management focus.
Figure 9: Flexibility vs. Wealth Management Capability Matrix
Source: Aite Group
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21
DETAI LED VENDOR COMPARI SON
This report compares vendors based on their CRM capabilities that can help financial institutions
integrate and leverage client information to achieve business results. Ultimately, financial
institutions should look to their CRM solutions to help their advisors gain greater control over
their practice activities and perform these more efficiently (Figure 10).
Figure 10: Advanced Applications of CRM Solutions in Wealth Management
Source: Aite Group
CENTRALI ZI NG CLI ENT I NFORMATI ON
F I NANCI AL DATA I NTEGRATI ON
The ability to view financial data in the same location as the rest of a client’s information adds
tremendous value to financial advisors, as they can go to one place to monitor clients’ financial
situations and use this information to generate sales, service, and marketing opportunities. In
Table F we review the out-of-the-box capabilities that vendors provide to help customers
integrate client financial information through integrations with custodians, or by integrating with
data consolidation and portfolio management solutions.
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22
Table F: Financial Data Integration Capabilities: Out-of-the-Box Integration
Vendors Custodians
Data
Consolidation
Portfolio
Management
Junxure ? ? ?
Microsoft Dynamics ? ? ?
Pareto Platform ? ? ?
Pivotal CRM ? ? ?
NexJ Contact for Finance ? ? ?
Redtail CRM ? ? ?
Salesforce for Wealth
Management
? ? ?
? Out-of-the-box integrations; ?Does not currently have integration partners.
Source: Vendors, press releases, news articles
Many large financial institutions will not need to integrate financial information from external
firms since their clearing and custody operations are in-house. Thus, partnership with custodians
and clearing firms will be more important for RIAs and, more generally, financial institutions that
outsource clearing and custody operations. These tight integrations imply that financial data may
update automatically on a daily basis or in real-time. While vendors may not have an official
partnership with a major custodian, this does not mean that data integration is not doable. For
example, Redtail integrates with Pershing, but the firm also provides a way for customers to
upload Schwab PortfolioCenter files to their program.
Perhaps more important for facilitating the integration of financial information into CRM
solutions than a partnership with a clearing firm is an out-of-the-box integration with a data
consolidation provider?an integration that is used both to aggregate internal data from back-
office systems as well as external data. Data consolidator Albridge can access data held at
various financial institutions. Advisors seeking to keep up with their clients’ assets held at
competing firms can also leverage this technology to include “held-away” assets in their client
record. Tracking this information allows advisors to stay on top of the opportunity to grow wallet
share, and provides them with the ability to provide better advice since it is based on the client’s
total portfolio.
All of the vendors state that they can handle integration with internal proprietary systems as
requested by the company using application programming interfaces. NexJ has been selected by
several large financial institutions for its strength in handling complex integrations with
proprietary systems. In addition, NexJ has developed custom adapters to ThomsonOne,
Hedgehog, MESH Integration Adapter, Portfolio Aid, and SunGard WealthStation applications.
Figure 11 shows the kind of financial data that is available within NexJ. The solution brings up
account, holdings and transaction level information right within the household or client record.
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Figure 11: NexJ Financial Accounts Screen
Source: NexJ
MI CROSOFT OUTL OOK I NTEGRATI ON
Given Microsoft Outlook’s dominant share of the corporate client email market, integration with
Microsoft Outlook has become a critical requirement of CRM solutions. All of the solutions
included in this report will be able to append Microsoft Outlook emails and calendar events to a
client record in the CRM solution. Two of the solutions (Redtail and Junxure) will do this
automatically upon recognizing an email. With Salesforce.com’s new Outlook plug-in,
Salesforce.com provides users with the ability to choose whether emails are automatically sent
to Salesforce.com or manually synched through a “send to Salesforce.com” button (advisors may
only want to send selected emails to the client record rather than every interaction). Dynamics
and Pareto Platform send responses to emails that have been tagged for synchronization
automatically to the CRM system.
Most solutions will also capture emails from other programs, such as Gmail. Redtail also offers
email hosting and archiving from Zimbra.
In Table G below, we provide a few comparative data points on vendors’ Microsoft Outlook
functionality. Some vendors have customized the Outlook interface to provide advisors with
access to a significant amount of data and functionality from Outlook directly without the need
to visit the CRM solution.
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Table G: Microsoft Outlook Email Integration Capabilities
Vendors
Outlook Emails
Synched With CRM
Emails Assigned to
Many Client Records
Custom Outlook
Development
Junxure ? ? ?
Microsoft Dynamics ? ? ?
Pareto Platform ? ?* ?
Pivotal CRM ? ? ?
NexJ Contact for Finance ? ? ?
Redtail CRM ? ? ?
Salesforce for Wealth
Management
? ? ?
?: Available; ?: Not Available.
*Two in total.
Source: Vendors, Aite Group
Pivotal CRM states that its integration with Microsoft Outlook is so strong that many advisors
work solely in Outlook. Pivotal CRM allows advisors to right-click on any field within Outlook to
view additional information about the field (for example, an account number will reveal detailed
account holdings in Outlook following a right-click). Figure 12 is a screenshot of Pivotal’s Contact
screen, which can be accessed directly from Microsoft Outlook.
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Figure 12: Screenshot of Pivotal CRM Contact Screen Available Through Microsoft Outlook
Source: Pivotal CRM
DOCUMENT S
Other key client data to add to the record are documents (financial plans, investment policy
statements, client reports, etc.). Many of the vendors profiled integrate with SharePoint and
allow CRM users to upload documents and manage them directly from their CRM solution.
Redtail has its own imaging solution that is WORM-compliant
2
which is the electronic data
storage method required by FINRA for paperless offices.
Salesforce.com includes the ability to attach documents in the client record through Salesforce
Content. The solution also includes Workspaces where many users can collaborate on a
document. For more robust document auditing and workflow capabilities, these solutions would
need to integrate with a content management solution such as FileNet or LazerFiche.
2. “WORM” stands for Write Once, Ready Many and refers to any type of storage medium to which data can be written to only a
single time, but can be read from any number of times. Typically this is an optical disk whose surface is permanently etched
using a laser in order to record information (foldoc.org)..
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Junxure and NexJ includes the ability for advisors to share documents and receive updated
statements from their clients through their client portal solutions (Junxure’s ClientView and
NexJ’s Client Portal for Finance). These portals are also used to present updated financial
information to clients, allowing advisors and clients to view the same information
simultaneously (while on the phone with one another, for example).
Table H: Document Management Capabilities
Vendors
Document Management
Out-of-the-box
Documents Accessible From
CRM Client Record
Client Website for
Document
Sharing/Upload
Junxure 9 solutions ? ?
Microsoft Dynamics SharePoint ? ?
Pareto Platform SharePoint ? ?
Pivotal CRM SharePoint ? ?
NexJ Contact for
Finance
3 ? ?
Redtail CRM 2 ? ?
Salesforce for Wealth
Management
Multiple* ? ?**
?: Available; ?: Not available.
*More than 30 solutions found on Salesforce.com’s AppExchange**Siteforce
Source: Vendors.
I NFORMATI ON ANALYSI S & SEARCH
CL I ENT REL ATI ONSHI P MODEL I NG
In wealth management, clients are viewed as part of larger relationships. Relationships are not
only familial, but also professional, or based on association memberships. Understanding these
relationships and keeping track of them allows advisors to deliver more customized financial
planning, build rapport with the client/household, and helps advisors identify business
development opportunities. Solutions that include out-of-the-box relationship modeling and
analysis capabilities can help advisors gain deeper insights into their relationships more quickly.
Pivotal CRM and NexJ provide similar relationship modeling capabilities, allowing advisors to
create different types of relationships (family, employee, consultant, etc.). In addition, the
relationship hierarchies are displayed visually based on a file tree, which helps advisors quickly
understand their client’s relationship (see Figure 13). Information at each level of the
relationship is visible and can be rolled up at different levels. For example, in NexJ, the calendar
is visible at the client level, household level, employer level, etc. In addition, the solution rolls-up
financial account values at different levels of the relationship.
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Figure 13: NexJ and Pivotal CRM Relationships Trees
NexJ Relationship Tree Pivotal CRM Relationship Tree
Source: Salesforce for Wealth Management
Salesforce for Wealth Management includes relationship groups that allow advisors to assign
many accounts/clients (up to 20) to one relationship group or one account/client to many
relationship groups (up to 200 accounts). Advisors can view a client’s relationships and each
relationship member’s account balances through the client record and a separate Relationship
Groups page. Advisors can choose which relationship group members to include in a roll-up of
information and what type of information should be combined.
Table I: Client Relationship Modeling Capabilities
Vendors
Clients Roll-up to
Relationships
Multiple
Relationship
Types*
Hierarchical
Relationship Tree
View
Information Rolls-up to
Relationship
Junxure ? ? ? ?
Microsoft
Dynamics
? ? ? ?
Pareto
Platform
? ? ? ?
Pivotal CRM ? ? ? ?
NexJ Contact
for Finance
? ? ? ?
Redtail CRM ? ? ? ?
Salesforce
for Wealth
Management
? ? ? ?
?: Available;?: Not available.
*e.g., family, professional, friend
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ADVI SOR DASHBOARD
Given the plethora of information available through a CRM solution, advisors need help
navigating through this data to allow them to get the information they need quickly.
Solutions include dashboards that elevate key business and client information to help advisors
keep track of priority items and measure the progress they are making toward their business
goals. Microsoft Dynamics, NexJ Contact for Finance, Pivotal CRM, and Salesforce.com allow end
users to customize their dashboard components. Microsoft Dynamics and Salesforce.com
include drag-and-drop functionality and the ability to view information graphically. NexJ will be
offering this level of capability in a future release.
Dynamics also allows advisors to share their dashboards with managers or other colleagues.
Salesforce.com allows firms/administrators to share up to 10 different dashboards (unlimited
edition only) across users. Redtail and Junxure provide preconfigured dashboards that are not
customizable by end users directly.
Figure 14: Salesforce.com Dashboard Development
Source: Salesforce for Wealth Management
Redtail’s dashboard’s has preconfigured boxes, but they can be collapsed/expanded, and
advisors can add items directly from the dashboard. This allows advisors to get more done from
one screen (Figure 15).
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Figure 15: Redtail CRM Dashboard
Source: Redtail CRM demo version
Junxure includes two dashboards, one displaying multiple business metrics through graphics
(e.g., revenue per client, AUM per client and staff, etc.) and another showing the number of
open actions available at the client, employee, and workflow level.
Figure 16: Junxure Actions Dashboard
Source: Junxure
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SEARCH
In addition to the advisor portal, search features are essential for getting custom views of client
information to meet advisors’ specific needs. Advisors, or their home offices, will need to create
custom client lists for marketing, cross-selling, or client service reasons.
Microsoft Dynamics, NexJ, Pivotal CRM and Salesforce for Wealth Management provide
extensive search capabilities while Junxure and Redtail allow searches to consist of a maximum
of 10 criteria. All solutions will allow advisors to create custom lists or views (Dynamics) that can
easily be retrieved. Microsoft Dynamics, Pareto Platform, Redtail, and Salesforce.com provide
the fastest access to custom lists/views across the application.
Salesforce.com has unique global search capabilities for single keyword searches. This allows the
advisor to search for a client or an account or any other term from one search bar accessible
across the application. Other solutions will limit searches to a specific area of the application, or
will require end users to specify which object, or category, to search within (e.g., accounts,
contacts, etc.). Salesforce.com is built to allow end users to find the information they need very
quickly. All client information is available through one screen. Users can avoid scrolling through
the page to get to the information they want by placing the mouse over shortcut links to objects
such as “opportunities” and “activities” located at the top of the page. This action automatically
brings up all of the information details located at the bottom of the page.
I MPLEMENTI NG SALES & SERVI CE BEST PRACTI CES
PI PEL I NE MANAGEMENT
Most wealth management firms look to their CRM system to help with sales forecasting. Wealth
management firms ask their advisors to update the status of their opportunities and indicate
aspects about their opportunity such as estimated revenue or assets, probability of close, and
estimated due date. All vendors covered in this report will allow advisors to update the status of
an opportunity and indicate its probability of close. The reality is that most advisors (particularly
employee advisors) do not want to spend the time entering in pipeline information. The
common view among advisors is that this information may benefit their manager, but they do
not see the value of investing the time for their own purpose. Vendors that allow advisors to
create opportunities from multiple places within the CRM solution can help drive adoption of
this important tool. For example, Microsoft Dynamics allows users to convert Outlook emails
into opportunities with one click, and Junxure users can add or update an opportunity directly
from an action.
CL I ENT SEGMENTATI ON
The ability to segment clients and manage activities/interactions by client segment is one of the
most important functions of a CRM system. Advisors cannot afford to spend the same amount of
time with every client. They need to decide who is going to receive more of their time and what
the service experience will be for their high-value clients.
All vendors provide advisors with the ability to segment their clients. But only one firm, Pareto
Platform, is highly focused on teaching advisors a best-practice method of segmenting clients in
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addition to providing the tool to enable this practice. The training is offered for free as part of
the solution. Because the segmentation approach is based on three criteria, only one of which is
numeric (assets, advocacy, and attitude), Pareto requires advisors to manually assign clients to a
segment.
For advisors that seek to categorize their clients based on data points that are already part of the
client record, all of the solutions would be able to automate this process either through search
or workflow capabilities.
SERVI CE MANAGEMENT
Several solutions have strong service management capabilities. Pareto Platform comes with
best-practice service matrices for each of the recommended client segments (see Figure 17).
Advisors can create their own service matrix to better fit their business needs. Once service
activities (meetings, interactions) are defined for each client segment, these activities
automatically appear in one or more calendars. In addition, the service management workflow
can send “actions” to the individual who is responsible for scheduling the meeting.
Figure 17: Screenshot of Pareto Platform’s Service Management Tools
Source: Vendor
NexJ, Pivotal CRM, Junxure and Dynamics also include specific service management capabilities
that allow advisors to define and schedule service activities. Pivotal CRM provides call plan
templates that allow advisors or administrators to create an annual contact plan for a client tier.
Advisors can apply the template to specific clients. These plans can also be sent to a manager for
approval (Figure 18).
Table J: Client Service Management Automation (Out-of-the-Box)
Vendors
Separate area to
define client service
activities
Automate assignment
of client services to
client tier
Service appointments
automatically added to
calendar
Junxure ? ? ?
Microsoft
Dynamics
? ? ?
Pareto Platform ? ? ?
Pivotal CRM ? ? ?
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Vendors
Separate area to
define client service
activities
Automate assignment
of client services to
client tier
Service appointments
automatically added to
calendar
NexJ Contact for
Finance
? ? ?
Redtail CRM ? ? ?
Salesforce for
Wealth
Management
? ? ?
?: Available;?: Not available.
Source: Vendors
Figure 18: Screenshot of Pivotal CRM Call Plan Template
Source: Vendor
MARKETI NG & COMMUNI CATI ONS
All vendors allow advisors to create letter/email templates and automatically merge client
information to send out personalized emails and letters. Where vendors differ, however, is in the
fulfillment and tracking of campaigns. Redtail, for example, leaves the marketing fulfillment role
to third-party vendors such as Sendoutcards.com or Marketinglibrary.net. Redtail and Junxure
both allow advisors to send out HTML email marketing messages, but these messages would
need to be developed using Microsoft Word. By comparison, Pivotal CRM and Salesforce.com
would allow advisors to create emails using prebuilt HTML templates.
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Pivotal CRM integrates with Pivotal eMarketing for advanced marketing capabilities to develop,
schedule, execute, and track campaigns. In addition, Pivotal eMarketing supports Web
registrations for live events. Salesforce for Wealth Management comes with the ability to send
up to 1,000 HTML emails based on a small number of templates. Users will be able to track when
and how many times emails are opened. For additional capabilities, Saleforce for Wealth
Management users can find many options on the AppExchange.
Table K: Email Marketing Capabilities Out-of-the-Box
Vendors
Ability to create HTML
email newsletters
Track campaign
statistics
Partner(s)
Junxure ? ? N/A
Microsoft Dynamics
?
? ExactTarget
Pareto Platform ? ? N/A
Pivotal CRM ? ? Pivotal eMarketing
NexJ Contact for Finance ? ? N/A
Redtail CRM ? ? MarketingLibrary.net
Salesforce for Wealth
Management
? ?
Multiple (Exact Target,
Eloqua,
VerticalResponse, etc.)
? : Standard email program/word template capabilities; ? Full capabilities out-of-the-box; ? No capabilities out-of-the-box
Source: Vendors
WORKFLOW TOOLS
All of the vendors provide end users with the ability to build multi-stage and multi-step
workflows, or action sequences that can automatically generate tasks when workflows are
triggered. The tools will track when tasks are completed and automatically send out the
subsequent task in accordance with the defined process.
Solutions from Microsoft, Salesforce.com, NexJ, and, Pivotal CRM can go beyond task
management capabilities to true workflow automation. For example, these solutions include
“approval workflow,” which allows advisors to automatically send a task or an email to a
supervisor requesting their review and approval. The supervisor could log into the CRM solution
and approve a document or a client view in the solution directly. Workflow capabilities that are
more project-management-oriented (or activity-management-oriented), such as Redtail’s and
Junxure’s, would send a task to a designated individual to remind them to request and obtain an
approval. Customers will often integrate Redtail or Junxure with content management vendors
such as Documentum, FileNet, and Laserfiche to manage a document-approval workflow
process.
Saleforce.com enables end-users to leverage advanced workflow capabilities without needing to
know how to program in a computer language. For example, end-users can create workflow
triggers based on formulas (for example, upgrading a client when their assets reach more than
half a million dollars). Several of the other solutions would require formulas to be written in a
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programming language. Another feature of Salesforce.com’s workflow solution is the ability for
non-programmers to create a workflow step to trigger a Web services call to another application
to automatically send/receive data to another third-party site or application. The end user would
need to obtain the message from a programmer and paste it into a field.
Pareto Platform comes with prebuilt workflow templates that specify specific steps that advisors
should consider following based on their clients’ service tier and key life events (retirement,
onboarding, annual meeting, etc.). Advisors can leverage these templates or develop their own
using the straightforward user interface illustrated in Figure 19.
Table L: Multi-Step Workflow Automation (Out-of-the-Box Functionality)
Vendors
# of
Workflows
Allowed
Visual
workflow
development
Triggers
Tasks/Actions
Triggers
Emails
Automate
& Track
Approvals
Prebuilt
workflows
(e.g., KYC,
acct opening)
Junxure Unlimited ? ? ?* ? ?
Microsoft
Dynamics
Unlimited** ? ? ? ? ?
Pareto
Platform
Unlimited ? ? ? ? ?
Pivotal CRM Unlimited
In
development
? ? ? ?
NexJ Contact
for Finance
Unlimited ? ? ? ? ?
Redtail CRM Unlimited ? ? ?* ? ?
Salesforce
for Wealth
Management
1,000 ? ? ? ? ?
?: Available;?: Partially available; ?: Not available.
*Email reminders. **Standard edition includes 200 workflows (US$44 per-user, per-month version)
Source: Vendors and solution documentation
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Figure 19: Pareto Platform Workflow Capabilities
Source: Pareto Platform.
CROSS- APPLI CATI ON WORKFLOW: FI NANCI AL PLANNI NG
In addition to serving as a control tower for client processes, CRM solutions can help financial
advisors automate processes that involve customer data entry. Many of the CRM solution
covered in this report have special integrations with financial planning vendors to allow advisors
to enter client information once and see it populated directly in the financial planning tool. This
integration is even more valuable if financial data is automatically updated in the financial
planning tool. Table M provides more information on vendors’ financial planning application
integrations and partnerships.
Table M: Integration with Financial Planning Applications
Vendors Out-of-the-Box Integration
Reseller
Agreements
Official
Partnerships
Junxure MoneyGuide Pro, MoneyTree,
Cheshire, NaviPlan
? ?
Microsoft Dynamics N/A*
? ?
Pareto Platform MoneyGuidPro ?
Pivotal CRM N/A ? ?
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36
Vendors Out-of-the-Box Integration
Reseller
Agreements
Official
Partnerships
NexJ Contact for Finance NaviPlan, PlanPlus ? ?
Redtail CRM eMoney Advisor, Finance Logix,
MoneyGuidePro, cashflow
INSITE, Aralia
? ?
Salesforce for Wealth
Management
None
? ?
?: Available; ?: Not available.
*Integration would be performed through wealth management partners
Source: Vendors
ADOPTI ON OF EMERGI NG TECHNOLOGI ES
CRM ON MOBI L E DEVI CE S
Vendors provide mobile versions of their CRM application to allow advisors to access and update
client information while traveling or meeting with clients. With the advent of larger-screen tablet
devices such as the iPad, advisors will have an easier time accessing or updating client data while
on the road or in client meetings. Table N provides more details on vendors’ mobile capabilities.
Table N: Mobile Devices Supported
Vendors Devices with Mobile Apps
Customer Adoption of
Mobile Version
Mobile App.
Development
Partners
Junxure
Any smartphone or tablet
with Web browser
10% of customers
have mobile license
?
Microsoft
Dynamics
Any smartphone or tablet
with a Web browser (Mobile
Express)
Low % in financial
services
?
Pareto Platform
Any smartphone or tablet
with a Web browser
N/A ?
Pivotal CRM
RIM Blackberry, Apple
iPhone, iPad, iPod, Windows
Mobile
5% adoption
worldwide
?
NexJ Contact for
Finance
BlackBerry,
iPhone (roadmap)
Pilot phase ?
Redtail CRM
Windows Mobile, iPhone,
Blackberry
N/A ?
Salesforce for
Wealth
Management
iPhone, iPad, Blackberry,
Android*
N/A N/A
?: Available; ?: Not available.
*Chatter only; additional services available later in 2011.
Source: Vendors
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37
SOCI AL MEDI A ADOPTI ON
Advisors can glean important information about their clients and their relationships through
social media networking sites such as LinkedIn and Facebook. Table O shows which CRM
solutions integrate with clients’ social media sites. The table also shows which ones help advisors
build a presence on social networks. Advisor involvement with social media is still in its infancy
due to compliance restrictions and regulatory uncertainty over this form of communication.
Over time, however, wealth management firms will find ways to leverage social technology to
help advisors share valuable content with clients and generate prospects.
Table O: Social Media Integration
Vendors
Integration of Social Info. in Client
Record
Drafting & Posting to Social Media
Sites
Junxure ? ?
Microsoft Dynamics ? ?
Pareto Platform ? ?
Pivotal CRM ? ?
NexJ Contact for Finance ? ?
Redtail CRM ? ?
Salesforce for Wealth
Management
? ?
?: Available; ?: Not available.
Source: Vendors
CRM solutions that allow advisors to post social media content would also include content
approval workflow capabilities to ensure the content meets compliance guidelines.
PRI CI NG
Table P compares CRM solution pricing structures, the subscription fee for hosted solutions, and
the range of implementation costs. A couple of observations:
All SaaS solutions are priced on a per-user, per-month basis, except for Redtail,
which prices on a per-database, per-month basis. Databases can support up to 15
individuals.
Microsoft provides one standard offer for US$44, whereas Salesforce.com has five
offers, priced from US$5 to US$250 per user, per month, that provide customers
with differing degrees of customization and functionality. Salesforce.com for Wealth
Management is an Enterprise-edition solution and is priced at US$125 per user, per
month.
Implementation costs for standard enterprise solutions are likely to be more costly
than for solutions that include out-of-the-box wealth management functionality.
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Table P: CRM Solution Cost Comparisons
Vendors Pricing Structure
Subscription Fee for
Hosted Solution
Implementation Cost
Junxure Junxure (On-Premise Annual License)
Three expandable package
offers?Basic, Growing Firm, and
Enterprise; each includes Junxure
training
Expected in 2012
(pricing not yet
announced)
Junxure
Implementation
Services included in
Enterprise package, or
as US$3,900 option
Microsoft
Dynamics
Annual license and maintenance fee
for on-premise
Per-user, per-month fee for online
US$44 US$20,000 to several
million
Pareto
Platform
Per-user, per-month fee US$95 for
independent advisors
Enterprise fee to be
negotiated separately
N/A
Pivotal CRM Pivotal Enterprise?user fee, server,
and application fee
Pivotal SMB?flat fee based on users
Pivotal SaaS?monthly license fee per
user; hosting and management fees
based on firm sizes
License-only starts at
US$39 (hosting and
maintenance fees
separate)
US$15,000 to
US$450,000
NexJ Contact
for Finance
One-time, per-user fee for license
Per-user, per-month fee for hosted
(3-year term)
Firm would need to
contact NexJ
N/A
Redtail CRM Per month, per database (up to 15
users)
US$65
(includes up to 15
users)
N/A
Salesforce
for Wealth
Management
Per user, per month US$125 N/A
Source: Vendors and vendor websites
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39
VENDOR SELECTI ON
One of the most important decisions that wealth management firms should make when
selecting a CRM solution is whether they are looking for a solution that can be molded to fit
their needs or whether they are more interested in an out-of-the-box solution. The reality is that
solutions do not necessarily fall squarely in one camp versus another; Salesforce.com, for
example, is a highly malleable solution, but contains some wealth management capabilities as
well as integrations with leading wealth management platforms (e.g., Schwab). Pivotal CRM
includes strong wealth management functionality and is highly flexible, but the solution does not
currently integrate out-of-the-box with non-CRM wealth-management applications.
Other factors that wealth management firms should consider prior to diving into a detailed
feature/function comparison include the following:
Hosted vs. on-premise solutions: Firms must determine whether they want to own
and manage the application, server(s) and database(s) in-house, whether they want
to purchase the application but have it hosted on third-party infrastructure, or
whether they want to access the application via the Web on a subscription basis
(SaaS). Firms that seek to leverage SaaS solutions must ensure that they have access
to high-bandwidth internet connections in order to maximize the solution’s
performance.
Scalability: Large and growing firms need to ensure that the solutions can handle
large numbers of concurrent users. Solutions such as Dynamics, NexJ, and
Salesforce.com are proven solutions for large firms.
Ability to meet the needs of multiple groups within the same organization:
Particularly for midsize and large organizations, solution should include
administrative capabilities that allow firms to tailor screens and access functionality
and fields based on user role or group.
Table Q provides Aite Group’s opinions on best-in-class solutions by firm size. We also
differentiate solutions that are highly flexible from those that are less so, but have strong wealth
management capabilities in terms of functionality and wealth management technology partners.
Table Q: Best-in-Class Solutions
Firm Size Flexibility Wealth Management Capabilities
Large Microsoft Dynamics NexJ Contact for Finance
Medium Pivotal CRM
Small Salesforce.com Redtail CRM
Source: Aite Group
We recommend Microsoft Dynamics for large firms seeking to customize a CRM solution to meet
their unique functionality and technology needs. Numerous technology partners with wealth
management experience have built customized versions of Dynamics for wealth management
firms. Microsoft Dynamics also provides large firms with the choice of three deployment options
?on-premise, managed, and cloud-based?which can be particularly appealing to larger firms
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40
that may have internal groups with different deployment preferences. Salesforce.com is of
course a solid contender in the large-firm marketplace, but the solution may not be a good fit for
all large firms given the SaaS-only deployment option and the limitations that come with the
solution (i.e., 1,000 workflows), which large firms could exceed. Salesforce.com’s Force.com
platform is also a contender for the enterprise spot, given that Force.com provides large firms
with the tools to build and deploy their own CRM solution from a cloud environment.
Large firms looking for prebuilt wealth management capabilities should consider NexJ. The firm
has built considerable experience implementing CRM solutions at very large wealth
management firms, and understands their data-integration challenges.
For midsize firms, we recommend Pivotal CRM. This solution is currently in place at several
midsize and larger wealth management firms, including Brown Brothers Harriman, where it is
used to manage and automate account opening among other client processes. In addition to
containing powerful wealth-management-specific functionality, the solution is highly
configurable and customizable, and continues to become easier to configure by end users
directly. A vendor to watch in this category is Pareto Platform. The solution is still new to the
market, but its ability to tightly integrate best-practice teaching with enabling tools is unique and
valuable. Many advisors could benefit from a structured solution like Pareto’s, which enforces
sales and service best practices through a predefined client segmentation methodology and
workflow templates.
Finally, small firms should look to Salesforce.com for a solution that they can mold to meet their
unique practice needs without investing significant amounts of money and time on
customization and application integration. Salesforce.com includes multiple pricing options and
solution bundles to meet the needs of firms of all sizes. Salesforce for Wealth Management is
one of the more expensive solutions, which is why we recommend Salesforce.com more
generically for smaller advisors, who may not have the budget for the wealth management
edition. Schwab advisors who elect to integrate Salesforce for Wealth Management with its
PortfolioCenter solution receive a 20% price reduction.
Small firms that are looking for a practical and easy-to-use wealth management CRM solution at
a low price point should consider Redtail. This solution requires no hardware investments and
provides the most straightforward user interface and functionality of all solutions reviewed.
Junxure is also a strong solution in this space, but the firm does not currently offer a SaaS
deployment (expected in 2012), which is increasingly the deployment option of choice for small
firms that lack the technology budget or resources to manage an application in-house.
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VENDOR PROFI LES
CDC SOFTWARE
SOL UTI ON BACKGROUND
CDC software owns more than 20 front- and back-office enterprise software firms that were
acquired over the last 10 years and which continue to operate as independent companies. CDC
software’s Pivotal CRM acquisition in 2004 was the firm’s first in the front-office space. Since the
acquisition of Pivotal CRM, CDC Software has acquired several additional front-office solutions,
including C360, an independent software vendor focused on building applications for Microsoft
Dynamics.
The Pivotal CRM application for wealth management was initially released in 2001, and is
currently in its sixth generation. The solution makes extensive use of Microsoft technology,
including the Office suite, SharePoint, and Visual Studio. The application has recently gone
through an extensive, five-year upgrade to adopt .NET-based Smart Client technology. Smart
Client Web applications combine the benefits of Web-based applications (remote access,
Internet access) with the advantages of a desktop application (a richer user interface, more
intuitive, access to the application while disconnected, and speed). Pivotal CRM provides a
number of out-of-the-box applications to provide a starting point for customer implementations,
exemplify industry best practices, and illustrate development best practices in building
applications on the Pivotal platform. These out-of-the box applications include the following:
Application Workflow
Contact Center
Customer Self-Service
Customer Service and Support
Data Quality Management
Document Management
Handheld for BlackBerry, Windows Mobile,
and iPhone
Marketing Automation
Partner Management
Sales Force automation (SFA)
Sales Methodologies
Social CRM
KEY STRENGTHS
Outlook Integration: Pivotal CRM states that its integration with Microsoft Outlook is so
strong that many advisors work solely in Outlook. Outlook is a native part of Pivotal, and it
allows advisors to right-click on any field within Outlook to view more detailed information
automatically linked and pulled from the Pivotal CRM system.
Client Data Management: The solution allows advisors to understand the full breadth of a
client’s family, personal, and business relationships. The relationship tree shows the client as
a member of a household, an employee of a firm, a consultant to an outside firm, etc. This
level of insight allows advisors to identify common traits between clients and determine, for
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example, with which organization or employer they may be able to generate additional
business through client referrals. In addition to relationship visualization the solution also
offer strong data-management capability. For example, users with data-management
permissions can easily identify duplicate records, as well as merge records and unmerge
them if they were, for example, merged in error.
Referrals management: For larger firms looking to generate cross-selling across lines of
business, Pivotal CRM has the ability to route referrals to other associates based on
geography, product, or client/prospect type. Associates can receive referrals on their
dashboard.
Workflow Automation: Pivotal CRM enables the creation of workflow templates that trigger
sequential activities. Tasks can be sent to individuals or departments once preceding tasks
have been completed. One of Pivotal’s clients integrates with FileNet to automate the
application process, from form-filling through electronic signature and document
management.
Integration with Social Media Sites: Pivotal CRM for wealth management enables advisors
to develop a social media presence to share ideas with clients and attract prospects. The
solution allows advisors to enter their comments directly in Pivotal CRM without having to
visit social media sites. Comments can also be routed to compliance officers for their review
prior to posting. In addition, advisors can integrate their clients’ social media presence into
the client record. The solution integrates Twitter, Facebook, LinkedIn, InsideView, and Google
Blogsearch.
F UTURE DEVEL OPMENTS
Pivotal 6 will continue to be enhanced with new capabilities that will focus on the following
features:
Enhanced data visualizations tools with multi-level drill-down capabilities
More tools to allow non-coders to customize complex workflow in the system through
configurations and visual tools
Choice of smart and thin clients (due in 2011) based on ASP.NET
Choice of code-based workflow and visual workflow (due in 2011) based on Workflow
Foundation
J UNXURE
SOL UTI ON BACKGROUND
Junxure’s vision is to impact the wealth management industry rather than to build CRM
technology. As a result, its CRM solution was designed to meet the specific productivity needs of
wealth management firms, and it includes out-of-the-box integrations with many of the non-
CRM applications that advisors already use. In addition, Junxure is currently being used by its
advisor customers to accomplish more than sales, marketing, and service management. Many
customers look to Junxure to manage any business process that needs to be coordinated and
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centrally tracked across multiple departments/individuals in order to meet audit, compliance,
regulatory, and client management requirements.
In addition to Junxure CRM, Junxure provides a client portal solution, ClientView, and a mobile
solution, Junxure Mobile. ClientView allows clients to securely share statements and other
documents with their advisors, and provides clients with updated information on their financial
portfolios.
Junxure is currently delivered as an on-premise software solution, and is built on a .NET platform
and SQL database. The firm is planning to deliver a cloud-based solution in 2012.
KEY STRENGTHS
Deep wealth management market knowledge: Junxure understands the needs of RIAs and small
broker/dealer firms and is entirely focused on enhancing its solution to meet the specific
productivity needs of these segments. In addition to the solution’s wealth management
orientation, the firm’s technical and training teams also understand the business. Many of
Junxure’s trainers were once advisors.
Training and technical support: Junxure is highly focused on ensuring that its clients get the
support they need to leverage the solution at its full potential. To accomplish this, Junxure
provides free and unlimited technical support and a suite of training options. In any industry,
training is a critical driver of CRM solution adoption. Junxure has found training to be so
important to its customers’ satisfaction with the solution that the firm now packages a training
program with the new Junxure license. Training services range from videos to implementation
services that involve guiding individuals through the process of setting up workflows,
deliverables, client lists, etc. to in-person training.
Prebuilt integration with wealth management platforms/solutions: Junxure has integrated its
solution out-of-the-box with a significant number of wealth management applications, including
portfolio management, data consolidation, document management/content management, and
financial planning solutions. In addition, the solution is tightly integrated with Schwab’s
PortfolioCenter platform.
Service management and workflow capabilities: Junxure includes the ability to automatically
assign “deliverables” to groups of clients or advisors (e.g., “A clients”). These deliverables can
include a time interval and frequency, and are automatically created in the advisor’s to-do list.
Junxure’s workflow tools allow advisors to create multi-step workflows. These workflows will
trigger open actions, which are then monitored through Junxure’s Actions dashboard. This
dashboard allows advisors and the office to keep track of open/pending actions at the client,
employee, and process levels.
F UTURE DEVEL OPMENTS
Junxure will announce a significant release in 2011 that will extend Junxure’s security features
and pave the way for significant third-party integrations.
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44
MI CROSOFT
SOL UTI ON BACKGROUND
Microsoft Dynamics CRM is highly flexible and can be adapted to meet the needs of customers in
any industry. Microsoft works with numerous, industry-focused partners to customize its
solution to meet the very specific needs of each firm. In North America, Microsoft Dynamics
CRM’s most important partners (managed partners) for the wealth management industry are
Salentica and Customer Effective. Salentica provides a wealth management version of Dynamics,
which includes client portfolio reporting and ongoing support for a hosted, on-site, or online
version of Dynamics. Other important global services partners include Avanade, Wipro, Veripark,
Podient, Exordia, and Ciber. Microsoft Dynamics client base is evenly split between large firms
that purchase enterprise licenses and small and midsize firms. Dynamics is currently being used
by several large wealth management organizations, including groups at Barclays, Alliance, Axa,
and ING. In the United States, Raymond James is a Dynamics customer worth noting.
As of January 2011, Microsoft Dynamics CRM is available globally through three deployment
options: on-premise, partner-hosted, and on-demand, through its cloud-computing
environment. Dynamics is Microsoft‘s first business solution deployed in the cloud, though the
firm has been delivering infrastructure through a cloud-computing environment for more than
15 years to enable anywhere access to email, contacts, calendars, and portals through its hosted
Exchange servers. The company claims it is the largest provider of cloud solutions worldwide,
with 500 million cloud users accessing its Web-based applications and online services (e.g.
Hotmail, Live Office, Calendar, Messenger, Xbox Live, Live for Mobile, Azure services and several
others). .
Microsoft relies significantly on its strong and large partner network to sell Dynamics. Microsoft
is involved in enterprise deals, but the firm will often rely on partners to reach small and midsize
firms. Microsoft Dynamics is akin to a car chassis in that can easily be molded to fit a particular
industry/customer. Multiple technology firms around the world base their business on reselling,
customizing, implementing, and supporting Microsoft Dynamics.
KEY STRENGTHS
Deployment choices: Microsoft Dynamics offers the unique ability to allow customers to adopt
different deployment options across the firm and change deployment options. For example, a
new Dynamics client has elected to start with Dynamics Online and then transition to an on-
premise solution once they obtain the budget to invest in the necessary
infrastructure/integrations.
Flexible and open development platform: Dynamics is highly customizable by customers and
third-party developers. Microsoft introduced “Solutions” in its 2011 CRM edition to allow both
internal and external developers to create customizations of Dynamics and easily share these
with other users. In addition to the solution’s flexibility, firms can take advantage of Microsoft’s
open-source, cloud-based development platform, Windows Azure, to build add-on solutions, or
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an entirely new CRM hosted solution if desired. Dynamics customers can also purchase add-on
applications through the Microsoft Dynamics Marketplace, which currently lists hundreds of
applications and services that are compatible with Dynamics.
Office-like functionality: Microsoft Dynamic’s interface is highly familiar to users of Microsoft
Outlook and/or Microsoft Office. Within Outlook, users can see Dynamics CRM areas as sub-
folders in Outlook mail folders. The newest 2011 edition of Dynamics includes a new streamlined
user interface with contextual ribbons (i.e., graphical functional options that are specific to the
selected tab), record pinning, and access to used lists. These additions minimize the number of
clicks needed to access functionality and information.
Workflow: Microsoft Dynamics CRM 2011 includes a strong workflow engine. The user interface
for creating workflows is straightforward and guides the user through the process of selecting
rule types, workflow objects and fields at every step of the process. In CRM 2011, Microsoft
introduced a new “Dialogs” feature that can guide service associates through a process or even a
conversation with a customer by collecting and processing information at every step and
returning suggested scripts, or prefilled emails/letters, etc.
Analytics and information visualization: Microsoft Dynamics CRM includes strong analytical
capabilities from SQL Server Analytics. Capabilities allow organizations to create, view, and
configure real-time dashboards. CRM 2011 includes a new feature called “Inline Visualization”
that allows users to instantly create charts and visualizations of their data.
F UTURE DEVEL OPMENTS
Microsoft Dynamic’s long-term product strategy is comprised of four core tenets:
Increasing the productivity of workers. Moving forward, the solution will continue
to focus on providing a CRM solution that allows organizations to maximize their
productivity.
Providing three deployment options (on-premises, partner-hosted, and on-
demand) for Dynamics and will focus on growing its share of the SaaS CRM market
through Microsoft Dynamics CRM Online 2011.
Promoting and enhancing its integration with Microsoft Outlook and the solution’s
Microsoft Office functionality.
Allowing an organization to maximize its existing Microsoft investment. Millions of
users around the world already use key Microsoft solutions such as Microsoft Office,
Microsoft SQL Server, Microsoft SQL Server Reporting and Analysis Services, Office
SharePoint Server, Microsoft Unified Communications, and Microsoft ERP products.
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NEXJ
SOL UTI ON BACKGROUND
NexJ was founded in 2003 by the former management team of Janna Systems , an e-business
solutions provider to the financial services industry, which was purchased by Siebel in 2000.
NexJ’s purpose is to deliver next-generation enterprise CRM capabilities to financial institutions.
The solution’s core offer is NexJ Contact for Finance. NexJ Contact for Finance integrates
enterprise CRM functionality with information from existing customer applications to provide
comprehensive customer knowledge across the enterprise. NexJ also provides additional CRM
and wealth management capabilities for a more comprehensive solution. These additional
capabilities are listed below:
Business Process Wizard for New Account
Opening & Account Maintenance
Portfolio Performance Reporting
Enterprise Schedule Synchronization for
Microsoft Exchange
Outlook email integration
Contact for BlackBerry
Business Intelligence and Analytics
Client Self-Service Portal for Finance
NexJ Model Server for in-house
deployments
NexJ Studio for in-house application
customization
The NexJ Application Framework is based on JEE technology, and runs on a variety of industry
standard platforms. NexJ partners with Deloitte, Accenture, Capgemini, CGI, SunGard, Thomson,
and other firms to deliver comprehensive enterprise solutions. Other key NexJ technology
partners include Microsoft and Research In Motion to enable the solution’s integration with
Microsoft Outlook and the deployment of NexJ Contact for BlackBerry.
KEY STRENGTHS
Wealth management domain expertise: NexJ’s solution was built to cater to the large financial
services firms. As a result, its standard functionality is tailored for the wealth management
industry, with specific functionality and workflows. The solution is currently used by two of the
largest wealth management firms in North America, including Wells Fargo Advisors.
Integration to external and proprietary systems: The NexJ framework is designed specifically to
support integration to both commercial and proprietary systems. The NexJ Integration Layer
provides the ability to make direct API calls to external systems, and supports Web Services,
SOAP, TCP/IP, and HTTP protocols for external applications to call into the NexJ Application
Framework. NexJ has developed integration to Siebel CRM, ThomsonOne, Dow Jones, NaviPlan,
PlanPlus, Broadridge, Portfolio Aid, and SunGard.
Comprehensive functionality: In addition to providing firms with comprehensive CRM
capabilities, the solution extends into financial data consolidation (including aggregation of
detailed holdings information), and portfolio performance reporting.
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CRM functionality differentiators include the following:
Relationship modeling and analysis: Clients are tied to households and can be
connected to advisors’ other clients, or connections, to represent different types of
relationships (e.g., accountant, board member, friend, etc.). In addition, client-level
information can be aggregated at various relationship levels; for example, calendars
and financial account information can be rolled up and viewed at different levels of
the relationship, including the household level.
Cross-selling capabilities: NexJ provides firms and end users with the ability to
generate client lists based on complex searches conducted through an easy-to-use
interface; search also encompasses financial account information at the asset-class
level so advisors can generate targeted lists (e.g., find clients with at least US$10,000
in cash balances and that have expressed interest in technology stocks).
Pre-integrated account opening workflow: NexJ’s New Account Opening process
automatically populates new account forms with customer information and
automates the approval process from routing forms for review to supporting a
feedback loop that tracks, resolves, and audits deficiencies.
F UTURE DEVEL OPMENTS
Future developments are concentrated in the following areas:
Enhancing the contact profile: Social media integration
Increasing personal and collaborative productivity: Enhancing reporting
functionality and enhancing integration with Microsoft Outlook and Exchange
Delivering closed-loop business process automation: Enhancing advisor onboarding
with a flexible import wizard
Providing one application, multiple channels: Mobile device support for iPad, iPhone, and
Android Devices; enhancements to BlackBerry client; and client self-service portal
enhancements
PARETO PLATFORM
SOL UTI ON BACKGROUND
Pareto Systems started out in the late 1990s as a practice management consulting firm to wealth
management firms of all sizes. The training and ongoing coaching they provide to their clients is
based on the Pareto principle: that 80% of sales come from 20% of clients. They teach advisors
to right-size their books to focus on clients that they want to work with. Pareto developed a
proprietary CRM solution in 2003 because the firm believed that none of the solutions available
at the time were capable of implementing the best practices they were teaching. In 2009,
Microsoft approached the firm to propose building a solution using Microsoft technology. Pareto
Platform is now a customized version of Microsoft Dynamics, with 8,000 users. The solution runs
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on the ASP.NET platform and has, until now, been deployed as a hosted solution. The application
runs from an IBM cloud-based data center and is optimized for high performance.
KEY STRENGTHS
Tight integration between best practices and enabling technology: Pareto Platform achieves
what many wealth management firms have attempted and failed to accomplish; most wealth
management firms try to enable their sales process in their CRM application, but instead create
a solution with so many fields and boxes to click on that it becomes impractical to use. Pareto
Platform has embedded best practices at the right level. Best practices are built-in at a high level,
leaving the details up to the financial advisor. For example, the solution provides a framework
for segmenting clients based on three criteria (Assets, Advocacy, and Attitude), but the advisor
can determine the specifics of this definition.
Service management: The solution includes an area for defining service activities for each client
tier. Best-practice service activities are defined for the advisor (e.g., birthday calls, semi-annual
meeting, 60-day call rotation, etc.), but the advisor ultimately decides on which of these
meetings to deliver to each client tier and at what level of frequency.
Workflow capabilities: In addition to the segmentation and service management functionalities,
the solution includes strong workflow capabilities. These are based on Microsoft Dynamics’s
workflow functionality, but include a custom-developed interface on top to help advisors better
visualize the high-level and detailed workflow steps. Pareto Platform includes best-practice
workflows to help advisors prepare for service meetings, onboard new clients, transfer assets,
prepare clients for retirement, etc.
F UTURE DEVEL OPMENTS
Pareto Platform is working on expanding the number of applications with which the solution
integrates to cover more of the advisor’s workflow.
REDTAI L TECHNOLOGY CRM
SOL UTI ON BACKGROUND
Redtail provides a suite of Web-based productivity solutions designed for small wealth
management firms that seek pre-integrated and outsourced technology solutions. In addition to
Redtail CRM, Redtail provides email services and archiving (through Zimbra), WORM-compliant
document management, and Redtail Mobile for CRM application access across any device.
Redtail just completed a rebuild of their CRM solution to simplify the user interface and
application’s performance (load time), and reduce the time it takes advisors to find and update
information.
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KEY STRENGTHS
Deep wealth management market knowledge: Over the years, Redtail has developed a strong
understanding of the needs of small-office advisors. This market focus helps Redtail evolve the
application to become more and more relevant to its user base every year. In addition to
gathering requirements and feedback from its advisors, Redtail has begun to create forums for
its advisors to share best practices with one another. The company has set up an online
community for its users where they can share best-practice workflows, for example.
Prebuilt integration with wealth management platforms/solutions: Redtail has numerous
wealth management integration partners that advisors are likely to be working with already. For
example, Redtail integrates Albridge’s data consolidation solution, which allows Pershing
customers to automatically access client account information from the Redtail CRM solution.
Firms that have integrated with Redtail for automated data imports are financial planning tool
MoneyGuidePro and content management provider, and form management/filling provider
Laser App.
Dashboard and consistency of user interface: Redtail’s dashboard provides advisors with access
to a comprehensive view of daily and short-term activities (e.g., opportunities, reminders for the
next month). The dashboard boxes can easily be collapsed/expanded, and advisors can add
activities and opportunities right in the dashboard, which allows them to get more done from
one screen. Redtail’s dashboard is applied consistently through the solution, and is used to view
information at the client, household, and employer levels.
Cost-effective solution: Redtail ranks high on business value. Its solution is relatively
comprehensive, and Redtail charges less than its direct competitors. A 15-person firm would pay
less than US$4.5 per user, per month.
Search and list development: Redtail allows users to easily create new fields to categorize clients
and activities. This allows advisors to create client lists off many different criteria and to then use
these lists for communications, opportunity identification, or service management purposes. In
addition, advisors can select a subset of clients based on search capabilities, create a “tag” for
these groups, and access these from anywhere in the application.
F UTURE DEVEL OPMENTS
Redtail will continue to focus on increasing advisor productivity with its solution by, for example,
adding automated workflow triggers and using email to send reminders or task alerts. In
addition, Redtail is focusing on training its users through classroom workshops taking place in
multiple U.S. cities throughout 2011.
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SALESFORCE. COM
SOL UTI ON BACKGROUND
Salesforce.com was founded by a former Oracle executive in 1999 to create the first sales,
service, support, and marketing automation solution to bring the power of the Internet to
enterprise technology based on a cloud-computing infrastructure. Today, the firm generates
more than one and a half billion dollars in revenue and has close to 100,000 global customers,
including some of the largest global firms, such as Merrill Lynch and the Japan Post Network
(around 130,000 subscribers).
Cloud computing provides firms with a complete technology solution, on-demand, without their
needing to know the physical location of the technology environment or the configuration of the
system that delivers the services. Customers share the application and infrastructure, which
allows large and small firms to benefit from the same level of scalability and security.
Salesforce.com’s first cloud solution (also known as Cloud 1) delivered traditional sales and
service automation tools (contact, opportunity, activity management, etc.) to businesses.
Salesforce.com’s second-generation cloud solutions embrace trends set by Facebook, Twitter,
YouTube, and other social media outlets to make information more accessible and easy to
“follow.” Salesforce.com launched Service Cloud 3 in February 2011; it allows customers to
monitor their customers’ social media sites and create cases to respond to any customer posts.
KEY STRENGTHS
Scalability and security: Because the infrastructure and application costs are shared by more
than 100,000 customers, the firm has the resources to ensure these are scalable and secure. This
means that customers can grow their number of users quickly without seeing any impact on
performance.
Non-intrusive application updates: In addition, customers benefit from applications updates
and new releases three times per year, which they can take advantage of if they want, when they
want, and without disrupting their business.
Force.com platform and developer network: Salesforce.com runs on the Force.com open
development platform, which is easily accessible to developers. Many of Salesforce.com’s
300,000 developers have built add-on applications to Salesforce.com and made them available
for sale on Salesforce.com’s AppExchange. With one online payment, customers can purchase
add-on applications and enhance their version of Salesforce.com. Recently, Salesforce.com
announced the launch of Appforce and Siteforce. These solutions allow firms of all sizes to easily
create new applications and sites and access these from a cloud-computing platform. These
tools provide firms with infinite application flexibility at a lower price point, compared with
traditional application development and hosting.
Chatter and collaboration: Salesforce.com takes modern, Internet-based collaboration
technology and makes it work for businesses. Salesforce.com’s Chatter functionality allows users
to follow each other as well as groups, documents, and specific data fields contained within the
application. Updates to this information are pushed to users across multiple devices (iPhone,
Android, PC, etc.), similar to modern social networking tools.
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51
Workflow, Know Your Customer (KYC)-specific: Salesforce.com provides extensive workflow
capabilities, starting in its Enterprise edition. Customers can create immediate workflows and
time-based workflows (e.g., workflows start after a specific time has lapsed). Workflows can
trigger email alerts, tasks, field updates, and outbound SOAP messages sent to external
applications. To get customers familiar with how to apply these capabilities in wealth
management, the wealth management edition comes pre-integrated with a KYC workflow
capability. The separate KYC screen allows advisors/wealth management professionals to submit
client records for review/approval. In addition, customers can easily integrate external data
sources as needed using Web services to complete KYC requirements.
F UTURE DEVEL OPMENTS
Salesforce.com innovates at a rapid pace and releases enhancements at least three times per
year. At a strategic level, the firm is highly focused on commercializing its cloud-computing
platform to grow its business, and will be very focused on realizing the success of its Appforce
and Siteforce solutions.
CRM for Wealth Management: Approaching Total Practice Management April 2011
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52
CONCLUSI ONS
A confluence of factors is driving strong growth in CRM investments from wealth management
firms. Financial advisors need CRM technology today more than ever before to help them
compete against online brokerage firms and full-service firms and deliver a superior client
experience while optimizing the time they spend with each client. At the same time, CRM
solutions are more attractive and cost-effective today than they were 10 years ago. Functionality
is easier to change today, and new workflow capabilities provide firms with significant value, as
they can manage and monitor all client-related processes from one application.
In addition to improvements in technology, vendors and wealth management firms have realized
that technology implementations must be supported by process and technical training to ensure
advisors understand the best practices that their new tools are intended to enable. The report
discussed the emphasis that Junxure and Pareto Platform place on teaching advisors how to use
the solution based on best practices. From the firm perspective, we should mention TD
Ameritrade’s success with its Practice Management group, composed of 40 business consultants
who serve the needs of 4,800 RIAs.
3
Advisors can leverage this group to help them map out their
business processes and automate these through their CRM tool’s workflow capabilities. TD
Ameritrade claims that advisors who have worked with its Practice Management consultants
have grown their assets under management by 19% (advisors that did not leverage Practice
Management resources only grew 9%).
Wealth management firms that can implement process and technology changes simultaneously
through a tool that advisors find easy to use are well positioned to generate significant value
from their CRM investments.
1. Interview with Mike Watson, TD Ameritrade Practice Management, and “Starting the Case for
Practice Management,” Financial Planning.com, February 4, 2011.
CRM for Wealth Management: Approaching Total Practice Management April 2011
© 2011 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited.
101 Arch Street, Suite 501, Boston, MA 02110 Tel: +1.617.338.6050 Fax: +1.617.338.6078 [email protected] www.aitegroup.com
53
RELATED AI TE GROUP RESEARCH
The State of Banks’ Mass-Affluent Offerings: One Site Fits Some, January 2011.
Global Wealth Management Technology: Trends in Advice-led Selling, October 2010.
Evaluating Wealth Management Platforms: Financial Planning at the Core, September 2010.
The Next Generation of CRM in Retail Banking: Sense-and-Respond Marketing, June 2009.
CRM for Wealth Management: Approaching Total Practice Management April 2011
© 2011 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited.
101 Arch Street, Suite 501, Boston, MA 02110 Tel: +1.617.338.6050 Fax: +1.617.338.6078 [email protected] www.aitegroup.com
54
ABOUT AITE GROUP
Aite Group is an independent research and advisory firm focused on business, technology, and
regulatory issues and their impact on the financial services industry. With expertise in banking,
payments, securities & investments, and insurance, Aite Group’s analysts deliver comprehensive,
actionable advice to key market participants in financial services. Headquartered in Boston with
a presence in Chicago, New York, San Francisco, London, and Milan, Aite Group works with its
clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they
remain at the forefront of industry trends.
AUTHOR I NFORMATI ON
Sophie Schmitt
+1.617.338.6002
[email protected]
CONTACT
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Aite Group Sales
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For all press and conference inquiries, please contact:
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For all other inquiries, please contact:
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