Aug 31st 2016 - by Bryan Marable
Most of us (even millennials) will know the famous slogan “What can brown do for you?”. It first came into circulation by UPS in the early 2000’s, coinciding with the dawn of online consumerism and the death of brick and mortar.
RedQuarry is a part of a new era of logistics and technology innovation in investment research. The best part is this isn’t just for large firms with massive budgets, but also for smaller advisors too. We’ve managed to do this by leveraging the massive scalability of cloud infrastructure.
RedQuarry brings logistics in the form of tracking, automation, and data management allowing firms to produce superior investment outcomes, provide higher levels of customer service, and differentiate against competitors to increase sales.
Strong investment results are a function of great research. We think of research as the body of actionable knowledge that most greatly benefits the clients of an advisory firm. At its essence, great research identifies exploitable opportunities and avoids losses. Poor research can then be defined as a reciprocal: it fails to identify opportunities and cannot discern avoidable loss. In our experience one of the defining characteristics of great research is a reproducible process implemented over a long period of time. There are many logical and coherent investment philosophies, but none are effective without a consistently structured and implemented process. This task is made significantly easier with technology aimed at automating parts of the process that otherwise would eventually slip through the cracks, much like the algorithms that map out a UPS driver’s route for the day.
Interestingly, there are still some decisions left to the human mind of the delivery person. In our experience great research also does not rely entirely on technology, but rather the best of human and machine.
An overarching theme driving the advances within shipping is comprehensive and connected data systems. Not having structured data about clients and investments is fast way to find your advisory practice irrelevant. It isn’t a matter of choice, technology that allows individuals, departments, and whole organizations to be more efficient cost less to run thus driving margins lower.
Luckily finance technology companies are starting to create tools and software that is as easy to use as what we’ve come to expect as ordinary consumers with our tablets and apps at home. The days of wondering why consumer technology and enterprise technology, particularly in finance, are so far apart is beginning to close. The client advisor armed with RedQuarry spends less time prepping for client meetings and is more informed.
RedQuarry users are finding that our platform helps them stand out from the crowd and win more new business. It’s no surprise who gets the attention of prospects when one firm has a well thought-out research process that can be shown on screen in real-time and one firm relies on shared folders and unverifiable adherence to stated processes. Saying that your research process is sophisticated and showing evidence are two very different things when it comes to convincing a skeptic with a limited attention span. On a related note, the centralization of investment knowledge also goes a long way towards reducing key person risk, which arguably is one of the primary sources of client turnover among financial advisors.
RedQuarry's cutting edge research management software is used by leading investment firms around the world to manage their investment process, due diligence files, documents, reporting, and research compliance.