Products June 27, 2018

Cetera Launches Adviser Texting Solution for Smoother Client Communication

The firm recently announced a new initiative to expand its 401(k) business, and it has now unveiled a texting solution aimed at simplifying compliance and recordkeeping in text-based client communications.

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Cetera Financial Group has launched a “fully compliant texting solution” for its affiliated financial advisers.

As the firm explains, the solution enables Cetera advisers to “quickly and easily correspond with clients through a medium that has rapidly become the communication method of choice for clients across the generational spectrum, and to do so in a manner that is fully consistent with industry rules and regulations.”

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Cetera will roll out the solution to all of its network firms in phases, commencing with a pilot program that is currently underway. It will likely take some time to test the texting solution, given that the lack of uniformity among independent financial advisers in how their offices are structured and the kinds of telecommunications technologies they use.

The texting solution is powered by Hearsay Systems, a Silicon Valley-based provider of digital client engagement solutions for advisers and agents at financial services and insurance firms. According to Cetera leadership, the solution is fully compatible with the company’s existing electronic archiving system, enabling the storage of all messages in a manner consistent with FINRA regulatory guidelines. Texts sent and received through the solution will be accessible from advisers’ desktops or mobile devices, the firm says.

Commenting on the collaboration, Clara Shih, CEO at Hearsay Systems, suggests texting is “a key factor in building deep, long-lasting client relationships.”

This news comes in the same week that Cetera announced the launch of a new 401(k) Practice Development Program tailored for its advisers—both those currently serving retirement plans and those seeking to expand into this market.

Data & Research June 27, 2018

‘Wants’ Trump Long-Term Financial Priorities for Many Americans

For one-third (33%) of Americans, spending on an experience has taken priority over achieving some larger financial goals, including saving for retirement, using the money for other financial investments, or paying off student debt.

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A slim plurality of Americans rate their overall level of financial security as either excellent or good (49%) versus those rate who rate their financial security as fair or poor (46%), according to a survey in partnership with COUNTRY Financial. These total numbers remain unchanged from the measurement dating back to November 2017.

As American age, their rating of their financial security improves: Ages 50 to 64 (54% rate excellent or good); age 65 and older (69% rate excellent or good). Younger Americans are less likely to rate their financial security as excellent or good (ages 18 to 34: 40%)

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Nearly nine in 10 Americans (88%) report they are spending weekly on things they want but don’t absolutely need. About two in three (63%) are spending $50 dollars a week or less on the “wants” and one-quarter (24%) are spending more than $50 a week on the “wants.” Four in ten Americans (40%) admit that they have tapped into their savings to pay for something that they really want, but didn’t absolutely need.

While most Americans choose savings over experiences (66%), for one-third (33%) of Americans, spending on an experience has taken priority over achieving some larger financial goals, including saving for retirement (12%), using the money for other financial investments (10%), or paying off student debt (5%).

Notably, this behavior is more likely to be taken by someone ages 35 to 49 on all choices than other age group, followed by younger adults ages 18 to 34. Twenty-four percent (24%) say they have simply delayed adding money to their savings account so they could have an experience instead.

However, asked what they might do with the money if they were given $1,000, one-third (32%) say they would drop the money into a retirement or savings account and another one-third (32%) would pay down debt.

The survey was conducted May 11 through May 13, 2018, among 1,003 adult Americans, ages 18 and older.

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