LPL Financial is using technology to reduce work friction for advisors while also investing in its lending capabilities to increase its advisors’ value proposition to clients, according to president and chief executive officer Dan Arnold.
LPL continues to develop ClientWorks, its integrated advisor platform, by expanding digitized workflows, Arnold said during the firm’s second-quarter earnings call with analysts.
In the second quarter, LPL made enhancements to its Move Money solution, making it easier and more automated for advisors to support deposits and withdrawals in client accounts, according to Arnold.
The firm also enhanced its client management workflow for advisors by integrating goal planning data into its Meeting Manager solution, enabling advisors to better prepare for client reviews and have more valuable dialogue during client reviews, Arnold noted.
“These enhancements help advisors operate more effectively and increase their scalability to serve more clients,” Arnold said.
LPL is also focused on improving its core clearing functions including money movement, account opening and account transfer, “which collectively drive the majority of our operational process,” he said.
“While we remain early in these efforts, we are seeing solid progress as we are now processing millions of transactions for our advisors through the applications of robotics and AI,” he added.
“By expanding the automation of these critical processes, we continue to increase the scalability and efficiency of our platform while also enhancing the client experience,” he added.
Lending Capabilities, Cash Management
LPL is also expanding its lending capabilities and resources, according to Arnold, who said that strategic direction enables the company to capture opportunities. Earlier this month, the company said it appointed Bill Sappington to the newly created role of executive vice president of banking and lending solutions.
Arnold said LPL advisors want to provide a “holistic approach to that overall advice spectrum, and so it's logical that we would think about bringing lending capabilities, cash management solutions and integrate those in as part of the client experience and to create those products and solutions to add value to the end clients.”
“What we did was go out to the marketplace and say, ‘Hey, if we're going to do this right, let's go get the experience and the insight and the leadership to do that,’” he said, referring to hiring Sappington.
“We had been experimenting for a short period of time and just learning enough about it to probably ask smart questions and better identify where our opportunities were, and then bring that leadership in to help us go operationalize and execute on that concept,” he added.
LPL is also counting on growth in its registered investment advisor channel, according to Arnold.
The company “went to the marketplace in a more offensive posture relative to our RIA offering” about a year ago and aims to “be more intentional about how we go to the market and really establish ourselves as a differentiated strategic partner and a value-added partner and not just a custodian to RIAs,” Arnold said.
“We see the opportunity to be a more significant vertically integrated strategic partner than just a custodian,” he added.
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