Monday, March 30, 2009
Fidelity, Pershing, Schwab, TD in a tech 'arms race'
Companies continue to spend on systems despite the weak economic conditions
Despite budget cuts across the financial industry, Fidelity Institutional Wealth Services, Pershing LLC, Schwab Institutional and TD Ameritrade Institutional are spending money to upgrade technology... Spending is increasing, on average, 1.5% to 2% this year. That is a modest amount, perhaps, but noteworthy because firms are cutting costs in most other areas.
However, to lure breakaway brokers, custodians consider the expenditures necessary.
"Wirehouses do provide their advisers with great tools, and when an adviser goes independent, they expect nothing less from their custodian. In fact, my research shows that platform capabilities and ease of use may be the largest determinants of custodian selection," said Robert Ellis, a senior vice president and head of the wealth management practice with Celent Communications LLC, a consulting firm in Boston...
Investment News: Fidelity, Pershing, Schwab, TD in a tech 'arms race'
Despite budget cuts across the financial industry, Fidelity Institutional Wealth Services, Pershing LLC, Schwab Institutional and TD Ameritrade Institutional are spending money to upgrade technology... Spending is increasing, on average, 1.5% to 2% this year. That is a modest amount, perhaps, but noteworthy because firms are cutting costs in most other areas.
However, to lure breakaway brokers, custodians consider the expenditures necessary.
"Wirehouses do provide their advisers with great tools, and when an adviser goes independent, they expect nothing less from their custodian. In fact, my research shows that platform capabilities and ease of use may be the largest determinants of custodian selection," said Robert Ellis, a senior vice president and head of the wealth management practice with Celent Communications LLC, a consulting firm in Boston...
Investment News: Fidelity, Pershing, Schwab, TD in a tech 'arms race'
Permalink posted by markw @ 4:47 AM 
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