Succeed with results.
Broker-dealers need to optimize incentive compensation management services to sustain profitable growth, and they need effective tools for financial performance measures to gain insight into their business. With increasing competition for producer talent and an always changing business and regulatory environment, broker-dealers need flexibility and reliability they can count on. Broker-dealers Count on Ussm for optimum service and results every day.
Grow from $6MM – $100MM without adding staff
An independent broker-dealer grows to 700+ producers without adding sales compensation staff using Xtiva.
In 2001, a start up independent broker-dealer with 15 reps chose Xtiva. Today this firm has 700+ reps, 200 branches, over $100 million in revenue and, with Xtiva, they still need just one person to manage all of their brokerage commission system processing.
Acquire new business without adding staff
An independent broker-dealer acquires whole broker-dealers without adding sales compensation staff using Xtiva.
A growing independent broker-dealer active in M&A was able to acquire two other independent broker-dealers without adding any operational staff to their existing team using Xtiva. The firm smoothly took on the different sales commission system cycles and deal structures they kept across each new division, and maintained their high level of service in sales and incentive compensation management for the whole firm.
Consolidate operations for better margins and service
A leading financial services company consolidates their commission systems and compensation management across 4 separate broker-dealers and 1 broker-dealer subsidiary with Xtiva.
Xtiva helped a leading financial services company with four separate broker-dealers and one broker-dealer subsidiary consolidate all five separate sales management systems into one operational platform managed by one team for the entire enterprise. With their new centralized management of compensation management and Xtiva’s sales tracking software, the firm achieved more consistent and optimized brokerage compensation plans for the whole enterprise.
The ROI from this project was immediate. The firm eliminated paper-based sales commission reporting and related postage and handling expenses. The subsidiaries seamlessly merged their broker compensation processes into one Xtiva enterprise solution. Our client reduced over 20 compensation management personnel across the 5 broker-dealers’ technology, licensing and help-desk groups. Overall, help-desk Q&A volume each pay cycle fell, and broker satisfaction levels increased dramatically. Finally, the broker-dealer was able to retire multiple in-house legacy commission processing and compensation management systems, reducing significant overhead costs for hardware, software, maintenance and related IT support.
Reduce payout cycles from monthly to weekly
A broker-dealer launches weekly payouts with Xtiva.
With Xtiva a broker-dealer gained efficiencies in compensation management that reduced their payout processing cycle times by 50-75%. The firm took these gains and converted them into higher service to their producers by shifting from a monthly sales compensation payout cycle to a weekly payout cycle. Higher service to their producers – that’s a result that pays.
Prevent costly payout errors
A bank broker-dealer consolidated sales compensation management across trust, banking, retail brokerage and insurance business groups using Xtiva, and recouped over $100,000 in payout errors.
Xtiva helped a bank broker-dealer with 4 business channels (trust, banking, retail and insurance) consolidate compensation management departments across each channel. In the process, the bank broker-dealer found and recouped commission system over-payments from previously uncaught errors made by their legacy commission system amounting to over $100,000.
Here’s what how it happened: In the separate legacy systems of each business unit, reps carrying multiple licenses to sell products across both business channels had been simultaneously paid on transactions by more than one department (e.g. an insurance agent licensed to sell securities was incorrectly paid by both the brokerage and the insurance units; and a retail broker licensed to sell annuities was incorrectly paid by both the insurance and brokerage units). This double-paying issue was quickly found and permanently eliminated by using Xtiva.
Prevent costly clearing firm errors
A regional full service broker-dealer discovered and recouped over $150,000 in clearing firm overcharges using Xtiva.
Within the first few months of rolling out Xtiva’s brokerage sales compensation management solution, a regional full-service broker-dealer discovered their clearing firm had been overcharging them on postage and handling fees for over a year. The broker-dealer calculated that the overcharge error had cost the firm over $150,000 cumulatively, and was able to produce reports from Xtiva showing their findings. The clearing firm confirmed the overcharge error and credited the full amount back to the broker-dealer.
Reduce rep on-boarding time the “Ron Popeil” way
A broker-dealer with 1,000 reps and 330 different payout deals used Xtiva to reduce new rep on-boarding time by 90%.
“Set it, and forget it.” – Ron Popeil, https://www.ronco.com
A broker-dealer client with more than 1,000 reps and 330 different payout deals had an on-boarding process in their legacy sales management system where brokerage compensation plans for new hires took approximately 20 hours to set up, and significantly more time throughout the year to maintain. After implementing Xtiva’s brokerage sales compensation management platform, Xtiva reduced rep on-boarding for the broker-dealer to only 2 hours per new hire.
Further, with Xtiva’s flexible sales tracking software, the new compensation management process required minimal intervention throughout the year. For this broker-dealer, setting up their compensation plans on Xtiva truly became a “set it and forget it” exercise. Thank you Ron Popeil – we couldn’t have said it any better.
Broker-dealer lost revenue, found here – ROI Survey
In a survey Xtiva conducted across Xtiva’s broker-dealer client base, recaptured expenses more than pay for the cost of Xtiva’s sales tracking software and compensation management solutions.
Here’s the ROX (“Return On Xtiva”) that Xtiva’s clients reported in the survey:
- Found and prevented unreported errors and overpayments
- Found and prevented clearing charge errors and overcharges
- Gained producer productivity equivalent to adding multiple FTE’s
- Optimized pay plans, motivated producers, increased profitability
- Eliminated paper, postage and manual labor costs every pay cycle
- Reduced producer turnover, lowered recruiting/training expenses
- Recouped service expenses with Xtiva pass-through fees to reps
- Reduced technology expenses with Xtiva’s hosted platform
- Gained IT staff resources from retiring legacy systems
- Gained operations staff resources from more automation
Simplify tax reporting and regulatory audits
Broker-dealers leverage mission-critical ad-hoc reporting with Xtiva.
- Expedite auditor/examiner visits
Auditors asked an independent broker-dealer client to produce a brokerage compensation report by rep based on gross commissions and revenue generated from Limited Partnerships and REITs for a prior year. With Xtiva’s ad-hoc capabilities, their compensation management operations user was able to provide the report instantly.
A retail broker-dealer needed a more efficient way to identify taxable revenue by state, rep and account to determine the taxes owed for each state in which the reps’ conducted business. With Xtiva’s ad-hoc capabilities, their compensation management operations user was able to produce this information instantly.
See the detailed results of a ROI study conducted by a regional broker-dealer client of 5+ years with more than 2,000 producers for their own internal audit.
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