~ Gleanings & Reflections on 2009 ~
Buzz & Cool Stuff
Happy New Year! I hope that 2010 is a great year for both you personally and for your firm.
One program I consistently watch is Sunday Morning on CBS. Why? Perhaps it’s for the humanity that I find in the stories, or maybe it’s because the original host, Charles Karault, once interviewed my Dad on his college consulting business. Regardless, as I was drinking my coffee and watching, I realized that the current host, Charles Osgood, was reflecting on some of the events of 2009. His focus was not on the good or bad, but on the interesting. That idea is central to the purpose of our December Newsletter in January.
We were originally going to create a “best of” newsletter highlighting the companies we felt were the best in their categories or segments as broker-dealer solutions. The challenge with a coming up with the “best of” list is that a majority of companies out there do a good job at their specific area of expertise. (That’s why it’s their area of expertise!) In my mind, what is best for one broker-dealer is not necessarily best or perhaps even appropriate for another broker-dealer. The more I thought about it, the less I wanted to do a “best-of.”
Instead, I decided to highlight companies that are creating a thrill in our minds and a buzz in the minds of broker-dealers and folks ‘in the know’ in our industry. In this month’s newsletter, we highlight ten companies that are our “buzz” companies for 2009, broken out by Back Office, Reporting Layer, and Blended Infrastructure, Front Office (Advisor)
We hope that our “buzz” edition catches your interest, as this format is a departure from our normal newsletter. We are embarking on this channel with excitement and a bit of nervousness.
As I look at 2010 I am very excited. We will be rolling out a new product under the tag of The Beacon Reports. These reports are being created especially for broker-dealers and their advisors. The Beacon Reports will be focused on strategic and tactical issues faced by broker-dealers and their advisors. Look for a special email toward the middle of January where we will outline the topics we plan on covering. At that time we will also roll out a new website, brochures and ways that we can serve broker-dealers and their advisors. Look for our announcement in mid January 2010.
All the best,
CK
On To Firms Making A Buzz And Making Waves
Back Office – Broker-Dealer
Account Opening – Arius Software
This Canadian-based firm combines a thoughtful, well-designed on-boarding platform with the capacity for a broker-dealer to configure and easily integrate into existing front and back office infrastructure.
Commission Processing – M&O
We have always been aware of M&O, but this year we were impressed by what M&O has done to evolve their set of solutions, as well as where they are planning on taking their solutions. They are evolving their firm beyond a commission platform to be a broader back office application, and also including front office integration. We believe that this comes from the new leadership and vision of Michael Brodeur, their new President. It is not often that we have the President of the firm spend over four hours with us, and give a demonstration that a techie would be proud of.
Reporting Layer
Compliance Post Trade Surveillance – SubServio – Compliance Assistant for Brokerage (CAB)
Another Canadian-based firm that is storming the market. This firm may very well give SunGard and Actimize a run for their money. In the complex and expensive world of post-trade surveillance, this group delivers a comparatively inexpensive solution with a rich rules-based engine that can be implemented in a short window based on access to data sources. This platform also currently digests both direct and clearing data. As an added bonus, CAB will be integrating with Arius Software to deliver a hosted combined pre- and post-trade set of surveillance vehicles that do not break the bank.
Business Intelligence Reporting - Broker Dealer Specific – Fetter Logic – Report Q
I have been a bit leery of this firm in the past due to the amount of customization and expense their solutions have demanded. However, in 2009 they have made great strides in streamlining and making affordable their Report Q solution. Report Q is Fetter Logic’s Business Intelligence Reporting solution. We like it because of its simplicity and commitment to starting their solution with quality data.
Business Intelligence Reporting- Cool Factor – InfoZoom
The company is the first firm to offer MP3 technology to financial firms that allows business users to pull large amounts of data from multiple systems with ease and quickly slice and dice the data for their needs. The technology was developed in Germany and is now getting a lot of press in the US.
Blended Infrastructure – Front & Back Office Integration
Hosted Portal with Multi-Function Integration – GenTech, LLC
GenTech is a new firm that entered the market in 2009. This firm fundamentally integrates the broker-dealer and advisor with their technology. The single sign-on platform today includes modules for communication, account opening (also known as on-boarding), compliance, commission processing, CRM, email, and imaging. One nice thing about this system is that while they have their own proprietary modules, GenTech, LLC can also easily integrate your preferred vendor solutions into the platform. Another nice thing – the price tag is very reasonable.
Document Imaging – Docupace
Not necessarily a new firm, but this hosted firm is creating a mighty buzz with whom they are signing as new clients. The 2009 new clients include AIG, ING, HTK, CFD Investments, FAA, Securities America and others. As well, they are not sitting on their laurels as they are taking their core imaging and workflow platform and integrating with back office systems and third party applications and data sources that aid a broker-dealer with both workflow processing and “Books and Records” demands. And they are more than willing to integrate with other “best of” firms without the “pay us first” attitude.
Front Office – Advisor Technology
Financial Planning – Money Guide Pro
An established firm that created a lot of buzz with its new release, version G:2.2, in November, MGP has added functionality to its platform that may very well increase market share lead. New features, like “Play Zone” and “Star Track”, plus the addition of new marketing materials, improve MGP’s easy-to-use format with easy-to-comprehend visuals. MGP took their solid existing system and made it better for both the advisor and the end client.
CRM – Smarsh
Smarsh remains a leader in e-mail hosting, archiving and compliance. The company expanded their presence by adding a CRM component to their product line. The application is easy to implement, access and use. The system leverages Smarsh’s archiving and compliance expertise, secure and redundant infrastructure, and commitment to perpetual innovation into a service crafted specifically for financial advisors and other sales professionals with long-term, relationship-based practices. Companies who have migrated to their platform are very happy with their results creating excitement around their platform.
Self Clearing
Thompson Reuters Beta Platform
Over the last years, Thomson Reuters developed custom applications and integrated them with their core brokerage processing system. The end result is a solution that caters to brokerage firms managing a variety of investment options such as clearing and direct business. Several well known broker dealers have transitioned off their existing brokerage platform to the new robust Beta system.
Broadridge
Broadridge is making a significant impact in the marketplace with its new alternative self-clearing model, which enables firms to self-clear their business by leveraging a complete bundle of Broadridge technology and operational staffing services to support complete front-to-back brokerage processing. Introduced to the market by Broadridge in 2005, they are the only provider currently offering broker-dealers technology and operational outsourcing services with FINRA approval. They currently have nine clients in alternative clearing model, with several more in the pipeline scheduled to convert over the next year. This model enables firms who currently fully-disclose their business through another clearing firm to transition to self-clearing and improve overall net income and scalability of their business by eliminating revenue sharing with their clearing provider, reducing processing expenses and benefiting from a predictable and scalable cost-structure through a unique step-based pricing model. Pretty cool stuff in our opinion.