Financial institutions, at least in the Nordic region, is still used to buying core business software like back office and broker solutions that are delivered to them on a server of their own and installed by a team of consultants while paying a large up-front fee. In 1999 Salesforce was launched and the way business software was sold was at least in my mind changed forever.

I am myself a Software as a Service junkie and an avid user of Atlassian, Salesforce, Office 365…you name it. In my opinion there is no reason for every “buying” software where you get a DVD or some other form of deliverable because the value of this piece of code has already depreciated to almost zero.

There is absolutely no value in software if it is not being constantly developed and has a team of developers behind it to make automatic upgrades and increase the usability of the software. This is for the same reasons why you should never own any asset that is depreciating because that is in fact a liability. For example, don’t own a car, lease it! Don’t own software, lease it!

This is why we at Bricknode are offering a completely online based software platform now without any contract terms. You sign up for almost nothing and you can cancel the service within the first 30 days and get your money back. If you want to cancel later, fine, just send a cancellation and you are off the hook.

Now, back to actually paying for what you use. My colleagues know that I absolutely love Atlassian, I use it for most of my companies that I participate in. For my smallest company I pay $30 per month and for my largest company I pay $2,000 per month and guess what, those fees correctly reflect the value I am getting from the subscription for each company.

The same thing goes for Bricknode, where else can you get a complete brokerage solution including back office, broker interface and customer portal for $70 per month? If you have 20,000 customers and you use a lot of add-ons you will be paying above $10,000 per month but that should reflect the value that you are getting from using the software or something is wrong with your or our business model.

Imagine that a financial institution would like to offer a new product, maybe they would like to offer online trading of shares to their customers or distribution of mutual funds. For $70 per month they can have a complete system up and running with Bricknode the same day it is ordered. They can try it on a few customers, see if the business is promising, if not they can just discontinue the service and cancel the software.

I think that everyone building a FinTech company should think in this manner and work with monthly fees like this, remember, if the incentive is not there for developers to incrementally improve their software service there is no value for customers or the company producing the software. Without ongoing development and with the current speed that the financial world and regulatory environment is moving any financial software will be dead in 3 months. Well…maybe a little bit exaggerated but you get the picture!

A very interesting article was published in the Financial Times which was reported upon by various media like Veckans Affärer. Facebook could become the ultimate player within the financial industry who really understands how to use the Internet for conducting social banking and for the future maybe social trading?

Facebook has made a lot of smart moves lately where it has used its money to quickly make acquisitions instead of trying to develop everything itself. It definitely grasps the importance of time to market. With its global reach the company could become the fastest established financial institution ever. In an industry where numerous companies are struggling to establish a technical standard of their own and gain acceptance, could Facebook accomplish this by offering standardised banking API’s?

The next few years will continue to boost the financial technology shift into cloud solutions for financial companies and Bricknode is right in the middle of it!

If you manage or own a financial advisory firm; or if you are running a financial institution with financial advisory as one of your business segments you should be reading this article.

Lets start by specifying some of your greatest pains with regards to your financial advisors.

Now, lets address one by one and look at how I think technology can offer a solution to each one of them.

Lack of productivity

The absolute greatest challenge for a financial advisor is how to leverage their time and this is one segment where technology really can help.

A great example of this is the effort by Danske Bank to start offering eMeetings. By utilising technology in the advisory process you could have customers pre-fill a lot of the questionnaires which you need in order to conduct the advisory process. The advisory tool could then present a few default packages based on the economic situation of the customer in relation to their risk appetite.

A simplified advisory process could look like this:

  1. Book a meeting
  2. Send an electronic information collection form to the customer
  3. Automatically compute received information to arrive at advisory packages
  4. Review advice live with the customer through a web presentation

Fulfilling regulatory requirements

As a manager or owner of a financial advisory business you can never be absolutely sure that your advisors are fulfilling all of their regulatory requirements unless you have a strict technical process in place. Using a customer acquisition software service you could configure the process ad-hoc and get some ease of mind while at the same time increasing productivity.

Verifying advisory process

To build company value as a financial advisor you have to be able to measure the effectiveness of your advisory process while at the same time being able to replicate it throughout your whole staff of advisors.

You constantly have to develop and adapt your process to the changing needs of your customers and the global environment. By utilising an integrated cloud based solution you could constantly configure your process and measure the results for both your advisors and your end customers.

Bricknode has embarked on the journey of working with financial advisors in order to create scalable value and increase competitiveness among small and mid-sized advisors. Please give us feedback on our Advisory module and Customer acquisition module!

Bricknode offers a complete cloud based solution for financial services firms. SaaS (Software as a Service) solutions are revolutionising how the financial services industry uses software. Bricknode has created a brand new solution since 2010 leveraging the latest available technology!