Tighter integration needed to create effective wealth management operations. A lack of integration between fee-based advisory and brokerage functions in desktop technology is hindering implementation of "hybrid" wealth-management business models, says a new report from Aite Group, a Boston-based research and consulting firm.

Definite opinions "With an effective integration between brokerage and wealth-management platforms, areas such as customer service, account setup, general administration, compliance and portfolio maintenance can all be reduced in the amount of time an advisor spends on each task," says Aite Group analyst Alois Pirker, co-author of the report Desktop Convergence of Wealth Management and Retail Brokerage: Competing in a Changing Landscape. "Obviously, this would mean advisors have more time to focus on customer acquisition and portfolio maintenance."

Of the 201 advisors Aite surveyed -- divided evenly between RIAs, full-service brokerage advisors and advisors supported by independent broker-dealers -- 72% of advisors consider technology either very important or essential in their decision to work for a given firm, and 64% would prefer a technology platform that integrates advisory and brokerage functions.

"In order for an effective platform to be created, wealth-management and brokerage functions can no longer be distinct applications," says Aite Group analyst Adam Honoré. "Advisors have definite opinions [about] which technology plays an important role in their ability to conduct business" -FWR

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