Case Study

Enhancing LPL Data With Business Process Automation


Discover how a wealth management firm’s average monthly revenue grew 57% within one year.

The Customer

Many wealth management firms partner with a third party broker-dealer for their clearing needs (also known as third party marketers). These firms can offer investment services to their customers with less overhead and headache. However, for some firms, the solutions provided by these third-party broker-dealers may not meet all of their needs, especially for programs with complex incentive compensation models.

This growing investment services firm required a centralized and automated system for their back-office that would reduce the amount of manual work and the number of moving parts. The firm clears through third-party broker-dealer, LPL Financial.

The Challenge

As the firm expanded it’s investment program over the years, it grew increasingly difficult to use an internal system of spreadsheets and in-house databases to process LPL data along with direct business. All of which required an inordinate amount of human intervention — in particular manually processing sales commissions based on electronic transmissions from custodians and product providers. Another challenge stemmed from the inability to pay transaction-based compensation grids, which hindered their ability to attract and retain top financial advisors. The firm had realized that homegrown technologies are difficult to adapt and build growth strategies around. Although satisfied with their partnership with LPL Financial, the services and technology provided by LPL lacked the sophistication to meet the needs of their growing business.

The Solution

The firm brought in Terrapin Technologies to more fully leverage LPL data. Terrapin Technologies business process automation technology enhances the LPL platform by providing the firm with data aggregation, incentive compensation management, and sales reporting.

With the business automation solution, the firm can:

    • Automatically aggregate and process revenue data daily.
    • Create transactions which enforce business logic.
    • Automate the reporting of revenue and fees to the general ledger.
    • View reports on sales performance by branch and rep, and sales to goal.
    • Calculate manager, sales rep, and platform commissions.
    • Monitor commissions receivable, checking for pending trades.
    • Track gross vs. net commissions.
    • Use audit logs to view instances of manual intervention on transactions.
    • Upload additional compensation-related data, such as referral fees and insurance revenue.

The Results

By automating and streamlining numerous processes, the firm experienced a significant reduction in manual work. Where payroll calculation used to take days, it’s now accomplished instantly and accurately at the push of a button.

The potential for human error was significantly reduced. Previously, errors were hard to track and lead to office-wide confusion. Now, they leverage a single source for data aggregation, making errors easy to track and solve. Additionally, audit logs keep track of changes such as reassigned commissions or corrected transaction amounts.

The back-office can easily create and update complex compensation models. These capabilities allow the firm to appropriately incentivize their advisors, which in turn help retain top performers and keep a competitive edge.

Now with Terrapin Technologies business automation solutions, the firm’s average monthly revenue grew 57% within the first year  without increased overhead. As they gear up for their next phase of growth, they have ample data insight making it easier to act swiftly and execute informed business decisions.

the firm’s average monthly revenue grew 57% within the first year — without increasing overhead


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