The popularity of online communities is seeping into the financial industry, and now Reuters is taking advantage of the trend.
At the end of September, Reuters launched an online community Web site for financial advisers called AdvicePoint. Investors looking for an adviser can use specific search criteria, like an adviser's location, assets under management and client niche.
The concept is to connect investors with financial advisers, and financial advisers with service providers that support their practice, says Scott Parry, general manager of AdvicePoint in White Plains, N.Y. "It's an eHarmony model of better profiling advisers," he adds.
Advisers can register and create a profile. Every profile is free, but advisers who wish to use more tools and products can upgrade for a fee.
Parry explained that Reuters created its own system because existing technology did not have the categories his team wanted.
Advisers can also link profiles. For example, if five advisers work together they can have links to all their profiles on their page. Also, advisers can link with attorneys and accountants.
Enhancements are still being made. Advisers were able to add attachments to their profile such as a PDF documents, video or podcasts in November. In late December, blogs and forum tools will be implemented, as well as a mutual fund screening tool, where searches for mutual funds can be done using Lipper research.
The Web site combines the use of Web 2.0 tools (blogs and forums) and traditional products, Parry says.
"This is a brilliant idea for advisers," says Jim Atkinson, CEO of Guinness Atkinson Asset Management in Milwaukee. It is difficult for investors to discern information on how to find an adviser, so helping them is a good thing, he said.
There are some questions as to how much information advisers would be willing to disclose on the Web site and how much firms would let them share, given regulations and compliance requirements.
"We understand that not everyone will be able to take advantage of all features," Parry says. Under compliance mandates, Parry does not expect any registered representative to create a blog, as it may be difficult to monitor.
The strategy among asset management firms is to not go too far and give away any secrets. However, they can use the Web sites to do self-promotion, such as indicating how well they built a portfolio for their client base, said Rodney Nelsestuen, senior analyst at Needham, Mass.-based TowerGroup.
The launch of Reuters' AdvicePoint comes at a time when social networking and online communities are increasing in popularity.
"The social networking online phenomena is here to stay and it will continue to grow," Nelsestuen says. "With any emerging market, however, it will be fickle, and there will be changes going forward."
There is a real move to engage people on a different level and offer services through a third-party site, Nelsestuen says.
Web sites such as LinkedIn give employers the opportunity to establish relationships with professionals in other countries, expanding their book of business. Also, it is a valuable tool when looking for a job or keeping in touch with associates, Nelsestuen says
There is a lot of interest among companies to create internal social communications networks versus using public Web sites like Facebook or Myspace, says Irwin Lazar, principal research analyst and program director of convergence and collaboration at Nemertes Research in Mokena, Ill. This allows people to ask colleagues questions and share a calendar, he says.
However, not all firms are jumping on the bandwagon of sharing information via social networks. Financial companies are concerned about what people are saying on the Internet and they need to make sure that there is no insider trading or endorsement of stocks taking place, Lazar says.
Mutual fund companies and other financial firms must be cautious about the content they put on Web sites, Nelsestuen adds. In a regulated industry, people need to watch what they say online and make certain they are not making misleading statements, he says.
For consumers, there is an issue of reliability. In the past, company Web sites could be trusted. Now it's more difficult to assess where information comes from, Nelsestuen says.
Jessica Papini is an associate editor for Money Management Executive, an EBA sister title.
(c) 2007 Employee Benefit Adviser and SourceMedia, Inc. All Rights Reserved.
http://www.employeebenefitadviser.com http://www.sourcemedia.com
No comments:
Post a Comment