CashEdge Survey Reveals Opportunities Exist for Advisors To Generate New Fee Income Using Aggregation Technology

Wednesday, January 19, 2011 22:30
CashEdge Survey Reveals Opportunities Exist for Advisors To Generate New Fee Income Using Aggregation Technology

Acccount aggregation systems have been hitting hard on the idea that advisors can charge for giving advice on held-away assets, and CashEdge's survey is another example of that trend.

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It makes sense that aggregation apps would jump on this point, since getting paid on held-away assets can easily justify paying the cost of their apps.


CashEdge's second annual financial advisor survey shows many advisors are giving advice away for free about held-away assets.


One interesting highlight: 95% of the 351 advisors surveyed for this poll say that have been proactively asked by clients for advice on self-directed retirement accounts in the past year. 


Comments (5)

While AllData Advisor does offer aggregation and visibility of "accurate, real-time data" according to Tom Roberts, General Manager of Aggregation, advisors cannot easily use the data for performance reporting and benchmark comparisons, valuable services to many clients.
billwinterberg , January 20, 2011
You can certainly use the data for Performance Reporting and Benchmark comparison. You just need to use the right Portfolio Accounting and Reporting software and have someone that knows how to utilize the data correctly. If you don't have that person in-house you can find an inexpensive outsource company that can get the job done.
RNRWMS , January 20, 2011
I need to be more specific. How does data from AllData Advisor get into the Portfolio Accounting and Reporting software?

Typically this is done manually, because the raw data from CashEdge is not formatted to be imported into Schwab Performance Technologies® PortfolioCenter®, Morningstar Principia CAMS, Advent, FinFolio, or other popular applications.

Manual data entry is not scalable and is costly in terms of human capital resources dedicated to the task.

Advisor Exchange is the only company I know that takes raw CashEdge data and processes (normalizes) it to be imported into accounting software.
billwinterberg , January 20, 2011
All of the account aggregation companies--Advisor Exchange, ByAllAccounts, CashEdge, Yodlee--have been invited to provide their specificiations on A4A in our Reviews section. The only one that has done it is ByAllAccounts. That's telling.
Would also be helpful to see more rating of all of them by advisors. If you've used any of these, please review. It only take a couple of minutes.

agluck , January 21, 2011
Data aggregators like By All Accounts and Advisor Exchange continue to improve reconciliation ready data for portfolio accounting vendors. At Orion we have seen RIA's who hand keyed all transaction data to a completely automated process. Data provided by aggregators continues to improve and accounting systems are becoming more experienced. We only see the process and data integrity improving.
jonreiners , January 23, 2011

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