HOLLYWOOD, Fla. -
But the contrast between serving an international clientele and citizens of Rock Hill, S.C. provided the color for the commentary. The Internet is more than an enabler and not just a separate channel for conducting investment business, and the line continues to blur as new, better and different ways of using it grow, said participants.
In Internet investment program websites it may be customary to find calculators and light planning modules and multimedia planning presentations, according to panel moderator Scott Stathis. Stathis is president of E-Lancers, Groton, Mass., which helps clients use sales technology effectively. But the days of using the web "strictly as an online brochure" are long past. He wanted to know how many financial service companies were doing full-featured, self-service planning and had online planning support. There was a distinct advantage to those firms that led the way in interactive utilization of the web, he said.
Steve Ryerson, VP of UNFCU Financial Advisors, New York, N.Y., (a United Nations FCU owned company) is responsible for development and implementation of programs to members, current and retired, around the world, including UN staff in 210 countries. "We use the Net as a point of contact with members and advisors," he said. "We even sell auto insurance through our website to expatriates in foreign countries for less money than they can buy it locally." UNFCU Financial Advisors has four representative offices, three in Europe and one in Africa.
The Next Step
The next step will be executables, said Ryerson, including full account openings. When asked if Patriot Act compliance might present a problem, he said he didn't think so, and the reason it's not is because his branch manager is so good. "He's crucial to that; my manager looks at all transactions and we have controls and must be very careful because we do a lot of day-to-day business off-shore. Our broker dealer since 2004 is Raymond James and we haven't had many problems there, either. Considering the nature of our clientele, which is international, it might appear to be a serious challenge, but we're OK. It works."
Ryerson commented that greater difficulties arise from UNFCU Financial Advisors' effort to expand and register to conduct business in Switzerland and Austria, where registration had to take place in each Canton (in Switzerland). "That's a challenge," he said.
Driving Members To Seek Advice
"We want to do two things with the web, and that's educate and drive members to seek advice. Right now I am focused on ways to engage Gen X members. I look at my son, who is 23-years old and will do just about everything on the Web. He wants an E-relationship through it, he wants to be educated through it and we have to find a way to provide that financial link for people in that age group."
Chip Hutchison, is an independent agent with Invest Financial at Family Trust FCU in Rock Hill, S.C. He said that Family Trust is an education-based credit union and stressed that member investment education was a key factor in their Internet strategy, but added that it was "an extension of what I am and what I do for members. It helps me to be open 24/7, but that's enough." The Investment link from the CU's home page goes to Chip's own page and is clear on the point that Invest Financial's mission is to help the citizens of York County achieve financial success. It features newsletters, articles, e-seminars and a financial glossary.
Hutchison later spoke to the Credit Union Journal about the history and down-home nature of the CU, and how it carries over to the investment services sector. "We're a soon-to-be six-branch credit union with assets of about $200 million. Back in the 1950s there was a textile mill here called The Bleachery, and they started the credit union in 1957. We're coming up on our 50th anniversary and I've been here 10 years. Family Trust is the hometown bank because all the other banks have been gobbled up or merged. The old Rock Hill Bank is now the Bank of America. We took in the York County School District as a SEG and later changed our charter to community."
Hutchison said that "local" still resonates in Rock Hill, noting that the local newspaper The Herald, does a reader survey each year on favorite businesses from ice cream parlor to bank, and for several years running, Family Trust FCU is the No. 1 bank in town. Hutchison said that he's available to anyone and spends as much time as required to helping people manage their retirement planning. He sees that as a part of fulfilling the CU's role. "I don't have the luxury of pulling in 100 million-dollar accounts and then shutting my doors. I'm generous with my time and I guess the credit union is happy with that because I'm a 1099 employee, an independent contractor and I work mainly on commission. The fact that part of those benefits go back to the CU, just as fees would go to a Raymond James or any other firm is understood by members, and they want to support the CU in that way," he said. It works better than a transaction-fee system, he added.
He spoke about the satisfaction of advising 50- to 60-year-olds who are forced to retire due to circumstances rather than choice. "They've built up six-figure 401(k)s and may now be freaking out about what to do. That's when the trust that's been built up over the years and my own experience can make a difference in their lives. Helping them create some financial stability is what keeps me going. This is a small town, it's beautiful here and when I go to church every Sunday I thank God for the blessings we have, for what we give to others." Invest Financial at Family Trust FCU has approximately $50 million in assets under management (AUM).
The Next Level
Stathis spoke of web 2.0 as the next level of development in using the Internet. "Meaning," he said, the community based structure of websites like Wikipedia and You Tube. The implications of this user-driven content will impact many businesses." Already, Wikipedia is 42-times as large as the Encyclopedia Britannica (EB), has 75,000 contributors, 53 million articles (in 100 languages) and 1,700 articles are added each day, he said. But surprisingly, there are fewer than three mistakes per article, lower than the EB average. "So it's almost as accurate and it's policed every single day. Wikipedia is fast becoming the repository of all human knowledge." Wikipedia gets its name from the Hawaiian word for fast (wiki) and was founded by a securities dealer, Stathis informed.
Open source software such as Linux and Firefox will also change things up, he said. "The financial services industry is the most aggressive user of open source software and the Net is enabling its development. That will reduce the cost of creating more advanced capabilities on our sites."
FOR MORE RESOURCES
For info on this story:
* www.unfcuadvisors.com
* www.familytrust.org
* www.chiphutchison.com
* www.wikipedia.com
* www.sugarcrm.com
* www.redtailtechnology.com
* www.truebridge.com
