If the SEC's summary prospectus initiative takes effect, the industry will save more than US$65 million in printing and postage, and more than 42,000 trees annually.

Boston, MA, April 17, 2008 – A new report from Aite Group, LLC considers the impact of paperless initiatives associated with prospectus delivery, statements, and on-demand customer correspondence. The report, based on an October 2007 survey of 505 people in the United States, input from technology executives at more than a dozen capital markets firms and discussions with leading vendors, discusses investor preferences around prospectus information, statements, account aggregation interests and other views on access to investor information.

In financial services, cost will ultimately serve as the major driver for paperless efforts. Many retail firms have begun exploring paperless branch concepts to eliminate the reams of paper used and stored in branches. Customer correspondence, including paper statements, confirms and prospectuses cost money, and are undervalued by their recipients. Regulatory initiatives may also contribute to paper reduction in 2008: The Securities and Exchange Commission (SEC) proposed a rule in November of 2007 that would reduce the size of mutual fund prospectuses to a "summary prospectus" of between two and four pages, with full prospectus information online. If this initiative takes effect, it alone will save the industry more than US$65 million annually in printing and postage.

"Capital markets firms are understandably looking for a sub-12-month return on investment for current technology initiatives," says Adam Honoré, senior analyst with Aite Group and co-author of this report. "However, despite all of the angst associated with the current market, firms are missing an obvious opportunity to save money. Reducing paper reduces cost. It also rewards leaders with good public relations given the current environmental focus."

"Regardless of where one falls in the climate change debate, capital markets sit in the enviable position of establishing a win-win relationship with environmentally friendly positions," says James Kang, research associate with Aite Group and co-author of this report. "Other than the insurance, health care and mortgage industries, few industries could benefit more than financial services from having less paper."

This 37-page Impact Report contains 30 figures and one table. Clients of Aite Group's Retail Securities & Investments service can download the report by clicking on the icon to the right.

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• Multichannel Usage in a Demographic Sweet Spot: Looking at Investor Behavior Before and After Retirement
• Holistic Wealth Management: The Data Consolidation Challenge
• Mass-Affluent Online Customer Needs in a Retirement Age
• What Really Matters to Retail Consumers of Online Brokerage?

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