The new white paper outlines how financial professionals can increase e-delivery adoption rates despite current challenges and perceptions
JERSEY CITY, N.J., - Pershing LLC, a BNY Mellon company, today released a new white paper entitled, "Closing the e-Delivery Gap: The 2013 e-Delivery Survey," which uncovered a significant gap between financial executives who expect investors to adopt e-delivery and the actual number of investors who enroll in such services.
The gap is significant: 53.1% of respondents expect investors to enroll in at least one type of e-delivery communication, but only about 20% of investors have chosen to adopt these methods. The survey identified various reasons for investors wanting e-delivery, including: easier record keeping (64.3%), reluctance to pay for paper-based documents (50%), a more secure environment (42.9%), and environmentally conscious attitude (21.4%). However, their reluctance to enroll persists, due in part to a lack of knowledge of the technology, security concerns, and an unwillingness to change "paper-centric" behaviors. Yet, the fact that many investors operate several investment accounts from various firms is the main reason more investors don’t move to e-delivery. Most firms don’t operate on the same software or with the same technology integrations, meaning investors have to master different user interfaces, forms and document delivery processes.
"Understanding the e-delivery gap boils down to the fact that investors have multiple accounts which are all supported by different technology eco-systems," said Ram Nagappan, chief information officer of Pershing. "If e-delivery is to be more widely adopted by investors, it's crucial for firms to embrace integrated technologies so that the industry as a whole can enhance the customer experience for investors. In personal and professional lives, everyone everywhere wants communication through the Internet, and the securities industry needs to recognize and adapt to the new desired customer experience."
Certain efforts are currently being made to close this gap and encourage the transition from paper delivery to complete e-delivery communications, which are identified by the research. The methods and training tools currently being offered to help advisors drive electronic enrollment with their investors include training presentations, how-to guides, motivation from branch office managers, and incentive programs for rewarding e-delivery users. Closing the e-Delivery Gap: The 2013 e-Delivery Survey, analyzes these best practices for successfully closing the e-delivery gap. The paper urges wider adoption of technologies in the securities industry, thereby reducing obstacles and misperceptions of e-delivery.
Other key insights include:
Pershing commissioned Beacon Strategies, LLC, a research and consulting firm specializing in technology developments in financial services, to produce the white paper, Closing the e-Delivery Gap: The 2013 e-Delivery Survey.
About BNY Mellon's Pershing
BNY Mellon’s Pershing and its affiliates provide advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers with a broad suite of global financial business solutions. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody, investment and retirement solutions, technology, enterprise data management, trading services, prime brokerage and business consulting. Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of 23 offices worldwide, Pershing provides business-to-business solutions to clients representing more than 6 million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. Additional information is available on pershing.com, or follow us on Twitter @Pershing.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Sept. 30, 2017, BNY Mellon had $32.2 trillion in assets under custody and/or administration, and $1.8 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.