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A Reminder of What Technology Can Do

A few weeks back, we presented at the MFEA Distribution Technology Summit in Tampa. Much of the discussion focused on the impact of mobile – Web sites, apps, CRM, advertising – on both asset managers and financial advisors. We’re biased, but it was a good day.

The last session was a panel of sales executives. Among the many issues the panel touched on was the idea of adoption – how much are advisors and wholesalers actively using mobile technology?

The sales executives provided a valuable reminder – there is a non-trivial subset of  advisors and wholesalers who will NOT embrace mobile. While technology can bolster execution and add a positive dynamic to relationships with advisors, it is not essential for everyone.

The reality is:

  • Many wholesalers and advisors have been successful for a very long time before mobile became important
  • Some wholesalers and advisors will always be inclined to avoid new technology

Image via Kevin Knight

It reminded me of a project we did a few years ago. We spent 20 days in the field with some of the most successful insurance producers in the country. As it turned out, two of these producers were complete technophobes. When I say complete, I mean they:

  • Did not have a computer or laptop in their offices
  • Did not carry a smartphone
  • Spent exactly zero minutes per day surfing the Web and using e-mail

And yet, both were HUGELY successful by any measure. In fact, these guys are in the top 0.2% of producers in terms of overall production. Similarly, some of the best wholesalers in the industry rely on zero cutting-edge technology. The MFEA panel discussion reminded me of this.

Technology in and of itself is not a solution, but part of a suite of resources that can make doing business easier. We need to avoid thinking that technology is universally transformational, that more of it is always going to help everyone.

Our collective excitement at the opportunities presented by technology needs to be coupled with an equal dose of pragmatism.

Best Blogs of the Week

A big rally last week has the Dow well over 13,000 and firms blogging about it. We selected two interesting takes on the upswing and a post providing a framework on selecting technology investments.

  • Columbia – I enjoyed the way this post explains investing in technology stocks.
  • MFS – This post provides three reasons to be optimistic about the current equity market upswing.
  • Pioneer – The author provides an interesting way to look at the market performance. This post speaks well to the FA with still-nervous clients.

 

Best Blogs of the Week

Politics are dominating the news and penetrated this week’s best blogs with two of three posts beginning with political situations.

  • BlackRock – Russia’s elections last weekend form the basis for this post. This helps any FAs think through an inquiry about client portfolios and the impact from the Russian election.
  • BlackRock – What if dividends are taxed differently? This post shares an easily shared (from FA-to-client) answer to that question.
  • Columbia – This post lists where Columbia sees growth in the large cap style. It’s an interesting and straightforward list; easy to digest and consider.