Research finds significant software improvements enhance client engagement

For Release:  July 21, 2010 – The Financial Planning Association^® (FPA^®) recently released the “FPA-ActiFi Adviser Technology Reports: Financial Planning Edition”, a survey report that compares and contrasts 10 financial planning software systems to help financial planners determine the best technology for their business. The research was conducted by FPA and ActiFi Inc. and sponsored by TD AMERITRADE Institutional.¹

The FPA-ActiFi Adviser Technology Reports: Financial Planning Edition, the second in a series of seven technology research reports published by FPA Press, reflects data gathered from more than 300 financial planners through a quantitative survey, detailed vendor interviews and comprehensive functionality testing. The report provides a best-practice view of how financial planning software can improve business operations, client service, client acquisition, and profitability.

According to the financial planners surveyed, 69 percent indicate they primarily based their financial planning software purchase decision on functionality, 34 percent based it on cost, and 23 percent based their decision on a recommendation from a friend or colleague.

Survey results also show that planning software has expanded from an investment focus to address a broader, more holistic set of client needs that includes asset allocation, business planning, cash management, estate planning, goal setting, retirement planning and more. This shows that financial planning tools have matured into more client-friendly versions and the focus has shifted from adviser-driven functionality to user-friendly information for the client. With the advanced technology, clients are more actively engaged in the planning process.

“FPA is pleased to offer yet another great tool which helps financial planners improve their business operations and client relationships,” said Marv Tuttle, Executive Director and CEO of the Financial Planning Association. “Many advisers believe financial planning software is the most important program they adapt for their business. It’s terrific to see how technology has advanced to engage clients more and help them understand the full planning process.”

“Financial planning software vendors have evolved their product based on considerable adviser feedback,” said Spenser Segal, CEO of ActiFi. “It’s interesting how they now enable more effective client deliverables and operational efficiency. While these benefits are available, it still requires the adviser to take a strategic look at how they approach the planning process, create client deliverables, and monitor the planning process. These new technologies introduce some possibilities that weren’t available a few years ago.”

“As advisors look to drive efficiencies within their businesses, they now have access to a comprehensive view of today’s leading financial planning software to help them make more informed technology decisions,” said Tom Bradley, president, TD AMERITRADE Institutional. “Through our sponsorship and collaboration with the FPA we solidify our commitment to provide advisors with these types of important practice management tools to help them identify the best solutions for their businesses and their clients and ultimately may help increase their productivity and profitability.”

Other key findings from the survey include:

Advisers report that retirement planning, plan/report generation and gathering/storing client data functions are the most useful functions in their financial planning software.

Most vendors evaluated scored well in those top three categories, with only two vendors scoring less than a 3 (out of 4 possible points) in any category.

The existence and quality of the Business Planning, Cash Management and Estate Planning functions varies dramatically - some vendors were found not to provide any functionality at all, and some vendors received full marks.

A free copy of the report will be distributed to FPA members and is available for purchase by non-members ($495) through the FPA Research Center.

The FPA-ActiFi Adviser Technology Reports: Financial Planning Edition is the second in a series of seven technology research reports that compare various software and technology platforms. The series will continue to be released over the next two years.

About FPA Research Center
FPA has been conducting research since its inception in 2000. The FPA Research Center was officially formed in 2007 to further empower the financial services sector with knowledge and an understanding of the financial planning process, including how it affects consumers, planners and firms.

About ActiFi
ActiFi™ is a software and solutions company focused on delivering scalable business execution programs to the financial services industry. By implementing our proven people, process, and technology solutions based on research, best-practices, and industry benchmarks, ActiFi clients run more effective and profitable businesses. Learn more at www.actifi.com.

About TD AMERITRADE Institutional
TD AMERITRADE Institutional is a leading provider of comprehensive brokerage and custody services to over 4,000 fee-based, independent registered investment advisers and their clients.2 Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisers to run their practices more efficiently and effectively while optimizing time with clients.

¹ TD AMERITRADE participated as a custodian respondent in the study. TD AMERITRADE is separate and not affiliated with Financial Planning Association or ActiFi and is not responsible for the policies or services of any third-party, except to the limited extent that TD AMERITRADE participated in the study. TD AMERITRADE does not guarantee nor is it responsible for the completeness or accuracy of the data provided or for the quality of any third-party product or service. TD AMERITRADE makes no warranty or representation with respect to the service as to suitability or fitness for a particular purpose. In no instance should the listing of a third party be construed as a recommendation or endorsement by TD AMERITRADE.

² TD AMERITRADE Institutional, Division of TD AMERITRADE Inc., member FINRA (www.FINRA.org) / SIPC (www.SIPC.org) / NFA (www.nfa.futures.org). TD AMERITRADE is a trademark jointly owned by TD AMERITRADE IP Company, Inc. and The Toronto-Dominion Bank. Used with permission.

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