As part of our 2011 Executive Meeting Series, we hosted executives from financial institutions in the first meeting and technology and service providers in the second. The interest in advisor desktop solutions was clear based on the amount of discussion. In case you missed it, here are the three key findings:

1- Advisor Desktop Integration is a Priority. Participants agreed that the advisor desktop is the focal point for most firms’ technology initiatives. The ability to integrate advisor-facing applications, aggregate data from inside and outside the firm, and customize the desktop based on role was shared by many in attendance. TowerGroup put forward that firms are elevating CRM as the hub of the desktop and seeing productivity gains as a result.

2- Data Federation Trumps Data Consolidation. Attendees recognized that getting the most current and accurate data, regardless of the host system, and routing it where the advisor needs it, is preferred over consolidating data in one repository. Our recent survey of CRM utilization showed that institutions ranked the ability to transfer data as the top solution to improving adoption of CRM technology.

For these two, we recommend:
Integrated, Aggregated, and Customized: The Evolution of the Advisor Desktop
(ExecutiveBoard.com Users * TowerGroup.com Users)
CRM in Wealth Management: The Hub for Next-Generation Advisor Platforms
(Executive Board.com Users * TowerGroup.com Users)
Bolstering CRM Utilization
(ExecutiveBoard.com Users * TowerGroup.com Users)

3 – The Downside of IT as a Utility. Wealth management organizations with a centralized IT infrastructure struggle with balancing the need for an enterprise CRM strategy with the demands of delivering a flexible and customizable CRM specifically to support advisors. A firm-wide CRM can enable better understanding of a client’s full relationship, but there is a governance challenge since divisions have to compete for centralized IT resources for custom data elements, new functionality, and complex reporting. Business lines within financial institutions are looking at how their interests are promoted by IT relationship managers in the current structure, and at how they may have to go around IT to speed up initiatives.
We recommend our diagnostic tools to look inside IT (Anatomy of a World-Class Technology Leveraged Wealth Management Organization) and to look cross-functionally (Business Alignment Survey: Collaboration Diagnostic).

The crux of the advisor desktop discussions was centered on capturing and retrieving data, regardless of the software application. Some firms may apply CRM as the user interface, while others may want a front-end that taps into the components of the advisor desktop. Financial institutions suggested that technology vendors could do more to open up their applications through the use of standards and open architecture. Since most applications are developed by companies that only cover certain aspects of wealth management, such as financial planning or portfolio management, this request pushes vendors to find ways to collaborate with adjacent technologies . Attendees from technology companies reflected that financial firms need to do a self-assessment of adoption of current functionality. Financial institutions are not always aware of what existing technology can do and should make sure they are maximizing what they have before pushing for enhancements.
Continue the discussion by adding your comments to this blog, and we look forward to hosting future events where you can concentrate on pressing issues with your peers.