JANUARY 29, 2018 | ARTICLE | BY FUNDKEEPER TEAM |
The check is in the mail. Or worse, there are four checks—made out to four different fund families. All of them are tucked inside your Southwest Florida rep’s notebook, which was on the roof of her car, but is now somewhere in the parking lot of the Hyatt Place Coconut Point.
Meantime, the market has taken another leg up and your new client missed out on the rally—not to mention the fees your firm missed out on while waiting for the checks to process.
Funding direct mutual fund accounts is one of those small things that’s never as simple as it seems it should be. Historically, advisors that wanted the benefits of direct mutual fund business—avoidance of clearing fees and access for themselves and their clients to fund companies’ client service and reporting—basically had only two moves: snail mail or a wire transfer. The former was prone to error while the latter was cumbersome at best—“Could you tell me that routing number one more time?”
And either approach was costly. According to Terrapin Technologies, “Postage and wire transfer fees are the largest direct expense associated with direct business mutual fund transactions.”
Surely there is a better way. Luckily, we believe there is. With FundKeeper’s remote check capture, your reps simply create an image of a new client’s check and upload it to the fund account, which usually gets created the same day.
What’s more, FundKeeper can allocate proceeds from a single virtual check to multiple funds. When clients fund the account, not each transaction, it creates a “brokerage-light” experience without all the fees and hassle. Remote check capture. It’s a small thing that can make your customers and reps happier and your business more efficient.
 Terrapin Technologies, Industry Perspectives, Sept. 28, 2016