Solutions for Stockbrokers Challenges for Stockbrokers

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Challenges for Stockbrokers

• Stockbrokers are increasingly seeking to move their business from a purely transactional based model to one that includes an annuity revenue stream
• More sophisticated clients are looking broking firms to offer them not just traditional broking functions but also to offer private wealth capabilities.
• Broking firms are seeking ways to reduce the costs of operations.
• Low unemployment rates mean it is a major challenge to find skilled staff
• Competition is eroding margins and new entrants are making this even more competitive e.g. Private Wealth Managers, Financial Advisors etc.
• Most broking firms maintain a large number of "orphan" accounts that do not generate any revenue.

What this means for your business

• An annuity revenue model means greater certainty over income streams and a higher valuation for the business as well as removing a potential or perceived conflict of interest between brokers and clients through "Churning" to earn brokerage.
• Clients will move to firms that can offer both traditional broking and wealth management under the one roof.
• Too much time is spent by staff on non revenue generating tasks
• It is becoming more difficult to recruit and retain staff to carry out administrative or technical tasks.
• When investing their money, clients tend to look for firms that offer them the best overall personal experience.
• The need for a competitive offer creates added pressures on an already highly competitive area
• Orphan" accounts are an untapped opportunity that get overlooked because of the demands of higher value clients

• By saving time and money in managing your client portfolios, Financial Simplicity can significantly improve operational efficiency.
• By offering a scalable solution utilising a process that requires the same amount of effort to manage tens, hundreds, even thousands of portfolios as it would to manage a handful.
• Improve client servicing by being able to accommodate into a common portfolio management process each client rules, preferences and constraints, which means that clients feel that their own individual needs are being catered for, rather than being dealt as part of a larger group.
• A new competitive managed portfolio service or 'product' for broad mass market distribution means increased income opportunities
• Reducing trading costs for you or your clients through the use of bulk trading and automated allocation processing
• Improve client servicing and satisfaction by being able to accommodate client instructions, without the need to introduce exception management workflows
• By removing unnecessary administration tasks, this frees up staff to carry more client-centric tasks.
• Utilising greater efficiencies, broking firms could capture value in their lower value client base without requiring significant advisor time