ANDOVER, Mass. - NewRiver Inc. says its electronic communications service has been very popular with E-Trade Group Inc.'s investors since the online brokerage starting offering the service in February.
The service generates paperless statements, trade confirmations, tax documents, and mutual fund compliance documents, including prospectuses, statements of additional information, and annual and semiannual reports.
Larry Renfro, NewRiver's chief executive officer, said the offering "has met with tremendous initial success." More than 50% of E-Trade's investors have received the service since its introduction, and the company has enjoyed "significant reductions in paper delivery and related processing," he said.
In its most recent quarterly earnings report, E-Trade said that it expects the multiyear contract it signed with NewRiver in February to yield about $7 million of annual savings.
E-Trade was the first financial services company to use NewRiver's Informa electronic investor communication software. Since then more than 15 companies have signed up for it.
The software is distributed through an alliance between NewRiver and DST Systems Inc.