September 18, 2000

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Financial-Services Firms Turn To E-Learning

Liberty Funds distributor adds programs for investors and financial advisers

By Sandra Swanson

More on E-Learning:

Motorola Preps E-Learning (09/04/00) Online Learning: The Competitive Edge (08/28/00) E-Learning Is For Soft Skills, Too (08/07/00)

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hen Liberty Funds Distributor Inc. researched the needs of its customers and the financial advisers who sell its products last year, one request emerged as an overwhelming favorite: more education. The Boston financial-services firm responded in July with E-learning programs for investors and financial advisers structured to foster stronger relationships between the two groups.

"Often, investors will talk with two or three financial analysts, and the biggest deciding factor for selecting one is the amount of education provided," says Phil Fragasso, Liberty's managing director of marketing. The free online courses for investors last about 20 minutes and address financial concepts such as assets allocation and international investing. Liberty's online program for financial advisers covers the same topics, but is more in-depth. "We're in a highly regulated industry, so we can say things to financial advisers that we wouldn't say to investors," he says.

The online courses are presented on behalf of financial advisers. When a customer logs on to a course, a photo of his or her financial adviser appears, along with contact information. The private-label approach lets advisers position themselves as experts and adds a personal feel to Liberty's services, Fragasso says. Liberty tapped LearningBrands Inc. to develop the programs.

E-learning is growing in popularity among financial-services firms--the Vanguard Group Inc. and Charles Schwab & Co. launched programs this year. But customer-focused E-learning will proliferate beyond that industry, according to Gartner Group; it predicts that 42% of all business E-learning initiatives will be directed at customers by 2003, compared with 7% today. E-learning lets companies educate customers about new products and creates more customer intimacy, says Gartner Group analyst Clark Aldrich. He also predicts that E-learning will alter online marketing strategies.

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