DALBAR Launches �Cheap� Statement Structure

(Boston, January 13, 2004) DALBAR today released its �Statement-on-the-Cheap� prototype � an investor statement structure that can save up to 60% in production costs.

Notable characteristics of DALBAR’s new statement structure include:

  • Short � single hard copy page supplemented by electronic delivery media (Web, VRU)
  • Meets regulatory requirements
  • Meets customer needs and preferences
  • Achieves significant cost savings in statement production immediately upon implementation
  • Leverages the Web and VRU to increase the effectiveness and reduce the cost of producing the statement

The �Statement-on-the-Cheap� model consists of a hard copy statement that includes the content most desired by investors, required disclosures, and electronic delivery of supporting detail via the Web and/or VRU.

Over the past five years, the industry has concentrated its cost reduction investments on e-delivery efforts, yet only 5% of consumers have adopted e-delivery of the statement, which falls far below the expectations of most firms.

�The �Statement-on-the-Cheap� structure makes cost savings attainable, and increases the effectiveness of the statement at the same time. It is the culmination of DALBAR�s expertise in investor needs, regulatory requirements, best design practices, and effective use of electronic media to achieve ultimate cost savings,� remarks Laura Boothroyd, Director of DALBAR�s Communications Division.

DALBAR�s �Statement-on-the-Cheap� model helps firms work through the historic challenges to increasing adoption of e-delivery of investor statements. Implementing the �Statement-on-the-Cheap� structure means:

  • No need to change consumer behavior to adopt e-delivery
  • No need to gain consumer consent for e-delivery
  • No requirement for high cost marketing campaigns
  • No investment in a full e-delivery mechanism

DALBAR offers support to firms in adopting and implementing the �statement-on-the-cheap� model, including:

  • Statement structure
  • Electronic delivery mechanism
  • Compliance support
  • Customer positioning

DALBAR�s Communications Division offers solutions that reduce the cost and increase the effectiveness of financial service firms� outgoing communications. The Communications Division assists in defining achievable goals and creating a roadmap to achieve these goals using creative solutions and the broad knowledge of successes and failures of others. The Communications Division offers recommendations, implementation support, benchmarks, best practices, awards, industry ratings and discussion groups.