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Staying Alert: Correspondent Clearing Workstations Wide Awake To Retail Needs

Staying Alert: Correspondent Clearing Workstations Wide Awake To Retail Needs

As pressures to reduce transaction costs in order to be competitive increase, correspondent clearing firms have renewed interest in acquiring the residual revenue generated from providing the workstation tools advisors need to generate revenue in the curr
By Adam Honoré

Boston, MA, November 12, 2005 – With industry consolidation, particularly in correspondent clearing, introducing brokers have had to leverage what they could capture from their clearing firm and augment additional needs internally. Now that the market is mature, and competition for the retail business is intense, clearing firms have started to be much more responsive.

In this report, Aite Group evaluates the advisor desktops of participating correspondent clearing firms and their fit with the needs of financial institutions and RIAs. Participating clearing firms include Pershing, National Financial, and ADP Clearing. Others were invited but did not respond or declined participation.

“Beyond incremental functionality changes, correspondent clearing firms are, as a whole, making the leap into data aggregation for their customers,” says Adam Honoré, report author and Senior Analyst in the Securities & Investments practice at Aite Group.

Honoré adds, “In a retail market where advisors are pressured to be more customer-focused, it is appropriate to expect their clearing firm to have the same business model.”

Each vendor was given an extensive survey to complete in addition to a detailed product demonstration with question and answer opportunities. The survey contained 212 questions that focused on the following categories:

This is a 51-page Impact Report. Clients of Aite Group's Retail Banking and Wealth Management services can download the report.