Looking at ways to enhance your business & career? Log onto streetsahead.in to upgrade yourself!
Financial Planning Tailor made client statements

Tailor made client statements

To cater to different kinds of investors, advisors also use different approaches. While some advisors send the statement received by them from AMCs to clients, others use third party white labelled software’s for all their clients.
Poonam Bansal Apr 16, 2016

Client’s demands could be conflicting for advisors to manage. Some clients want their account statements to be detailed, while others just like to see how much have they made or lost.

Thus, advisors use different approaches to cater to different kinds of investors. While some advisors send the statement received by them from AMCs to clients, others use third party white labelled software’s for all their clients.

Some advisors who don’t find any software meeting their requirements tend to develop in-house CRM system which can produce customized statements. In fact, many IFAs are now using their in-house developed software’s for generating customized statements for their clients. “We have developed our CRM system in-house because different clients have different needs. Some want to see a summary while others like to track their progress on a continuous basis. Thus, we provide different a/c statements according to the requirements of investors,” says Ritesh Seth, a Mumbai based IFA.

Ritesh provides statements every fort-nightly and after every transaction in T+2 days so that the clients can be up to date with their investments.

Another benefit of having in-house software is that it adds a unique feature or a USP, which other CRMs or advisors may not be able to provide.

Customization is the way to go

But why is customization required?

Apart from providing a simple understanding of portfolio, customization also provides a USP to the business. It delivers what the client’s needs.

“We give clients two views in our a/c statements. 1) Consolidated view of their portfolio which helps them understand investments, especially SIP and STP and the returns generated on the same. 2) Consolidated family investment i.e. investment made either in kids or spouse's name. Besides, our a/c statement also gives a view of the asset allocation of the overall family portfolio which helps them track their goals,” says Vishal Dhawan, Founder of Plan Ahead Wealth Advisors.

Third party software

Since developing a CRM software in-house requires time and money, many advisors prefer to buy third party software. There are many software providers in the market and choosing one which meets all their requirement can be a challenge. Thus, many advisors use different CRMs depending on the kind of reports they have to make.

The software’s available in the market provide flexibility and customization required by IFAs, so investing in developing in-house software isn’t really necessary, feel some IFAs.

Does the beta matter?

When asked if clients care about seeing financial jargon like alpha or beta in a/c statements, most IFAs say that they provide this information only to the savvy clients.

Although some clients might be particular about seeing alpha/beta, a vast majority of investors tend to only look at the returns generated by the portfolio. They don’t want to see too much data and just guide them about their investments.


Reports suggest that account aggregation is the next big trend. It isn’t a new concept and has been around in financial technology companies for a while.

Account aggregation is done by accumulating all the financial data or information of investors available across various institutions by bringing it to one place. For IFAs, it does away with the need of going through various financial statements and manually feeding data into financial planning, performance reporting, CRM etc.

Source: Tailor Made by Ed McCarthy, CFA Institute

Click to clap
0 Comment
Be the first to comment.
Wish to stay on top of your game? Get daily tips, ideas and articles to grow your business.
Subscribe to Cafemutual Newsletter.