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Salesforce Wants in on Financial-Advisor Business

August 26, 2015

Salesforce says it’s tweaking its sales-management software for the wealth-management industry, offering a platform that would allow FAs to “knit together” programs they already use, The Wall Street Journal reports.

It is the first attempt to penetrate high-value industries for the company, which has traditionally focused on providing software for salespeople to keep track of clients and prospects, according to the paper. Salesforce Financial Services Cloud has been in development for many months, which included consultations with wealth managers as well as with millennials to determine what they expect from financial-advice platforms, says the Journal.

The new software would allow brokers to integrate programs they already use for various aspects of their jobs, such as rebalancing portfolios and keeping abreast of customers’ financial goals, writes the Journal. In particular, when the program is released in February, it will let advisors access customers’ personal financial information put together by Yodlee, which was recently acquired by Envestnet, reports InvestmentNews. A Salesforce spokeswoman tells the publication that the company is working with AIG Advisor Group, Northern Trust and United Capital.

The CRM-software segment is currently dominated by industry-specific makers such as Redtail, which is used by 27% of advisors, and Junxure, used by 26%, according to an InvestmentNews study of advisor technology preferences. That study showed that Salesforce, meanwhile, is used by only 9%.

Even with the launch of its wealth-industry platform, Salesforce faces major challenges from the industry-specific providers, as users assess its ability to provide true integration — including support for financial-planning and portfolio-construction modules — Blane Warrene, of financial-technology-consulting firm QuonWarrene, tells InvestmentNews.

By Alex Padalka
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