Web-based portfolio management systems may be the wave of the future, but many advisors are reluctant to take the ride. Some resist the idea of handing control of their data over to someone else, and are comforted by knowing their data is located in-house. While it's understandable, here are seven reasons why you should consider a Web-based management system.
It offers improved access to your data. Most Web-based PMS systems provide access 24 hours a day, seven days a week. Of course, Web sites do crash, but many providers offer safeguards and contractual guarantees.
It can make disaster recovery easier. If you're using a Web-based system, your data will be stored in a separate location from your office. If there is a problem at your location, client information is still safe with your PMS provider.
You can focus more time and energy on income-producing activities. Many of these systems offer automated reconciliation, trading, and billing functions. This means you and your staff will spend less time on back-office functions and more time with clients and prospects.
You don't have to worry about purchasing the latest software. Because information is accessed through the Internet, your company is not tied to one particular software program. Advisors may think that storing software technology in-house will reduce cost, but if their PC has a problem, they have a problem. Using a Web-based PMS allows the technology to reside with the experts.
The equipment required is minimal. In fact, you probably already have everything you need -- a computer, an Internet connection and a Web browser.
The conversion process has matured over the last five years. PMS providers are aware that advisors believe the process of changing systems will be the painful. They've taken a proactive role in making the conversion as easy as possible to counteract this belief. Most application service providers use relational databases and open architecture to add to the portability of data between systems.
Technical support is readily available. The majority of companies offer a dedicated support staff to help you convert your system and assist you after the conversion. Some also offer Web-based training seminars.
If you can't find a pre-packaged Web-based PMS platform that has what you are looking for, financial management software companies will customize their products. Many will create add-ons to automate more of the time-consuming processes that used to be office-based, such as e-mail archiving and document imaging. So if you're considering a change in portfolio management systems, it's time for a second look at Web-based offerings.
Sean Gultig is vice president of Advisor Services at Fiserv Investment Support Services, the fourth largest custodian of trust, custodial and back office services to independent and institutional fee-compensated financial advisors. Contact Sean at 303-294-5838 or visit www.fiserviss-advisorservices.com.
-crop-215x144.JPG)
