A Quick Recap

Let's recap a few things before we go into the onboarding teardown.

• What do we do - Finominal is a portfolio analytics software that helps investors analyze funds and portfolios.
• Who do we target - Financial Advisors, Portfolio/Asset Managers, Pension Fund Managers, Research Analysts, and Outsourced Chief Investment Officer (OCIO)
• TAM - ~1 million users

Ideal Customer Profile (Who)

We have chosen Financial Advisors and Portfolio Managers as our ICP due to their high frequency of use, strong willingness to pay, sizeable TAM, and readiness to adopt new technology. Now let's understand their background and

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That's a lot of information to digest. To understand the ICPs better, let's explore their day-to-day responsibilities and struggles. This will help us get into the weeds with our customers.

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Day in a Life of the ICPs (What)

Get ready for story time!

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Financial Advisor: Sarah's Journey

Sarah starts her day early with a cup of black coffee and a quick scan of the latest financial news. She knows her clients depend on her to be informed and proactive. Today, she has a packed schedule filled with client meetings, portfolio reviews, and research.

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Her first meeting is with a long-term client, Elvis, who is approaching retirement. Sarah reviews his financial plan, ensuring that his portfolio aligns with his current goals and risk tolerance. They discuss market trends and potential adjustments to the portfolio in the upcoming months. Elvis appreciates Sarah's clear explanations and trust in her expertise.

Sarah spends some time analyzing a prospective client's portfolio, with whom she is going to meet in a couple of hours. She first tries to understand the different components of the portfolio, such as equities, bonds, and commodities. Since Sarah is very focused on fee reduction, simplification, and diversification, she analyzes the portfolio through these different lenses.

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She discovers that the portfolio contains a lot of redundant funds that can be eliminated without compromising returns using Finominal's Portfolio Simplifier tool. After this process, she ensures that the client is paying as little as possible in expense ratios by checking for cheaper alternatives to the funds in the portfolio using Finominal's Fee Reducer. Finally, she makes sure that the portfolio is well-diversified to protect against bear markets using Finominal's Diversification Booster.

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In the evening, Sarah has a video call with that prospective client referred by an existing client. She listens attentively to their financial goals and concerns, offering tailored data-driven advice that showcases her knowledge and empathy. The prospect is impressed that the portfolio of 20 funds can be reduced to 4 funds and only pay 1/10th of the fees. The prospect decides to onboard with Sarah.

Sarah has had a long and fulfilling day. She thrives on helping people better invest their money for retirement and is motivated to provide the best solution for everyone.

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Portfolio Manager: Michael's Journey

Michael’s day begins with a detailed review of the previous day’s market performance. As a portfolio manager, he needs to stay ahead of market trends and economic indicators. He starts by analyzing financial reports and scanning the latest economic data.

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His first task is to review the different portfolios and strategies under his management. Michael dives deep into the performance metrics, assessing which funds/assets have performed well and which have lagged. He decides whether the portfolio requires any immediate action or not. Since the volatility is not that high, Michael decides to leave it as it is as he believes in his strategy to do well over the long term.

Mid-morning, Michael meets with his investment team. They discuss new investment opportunities and share insights from their research. Today, there's a debate over the equity factors in the Canadian market. Michael and his team discusses over different themes and approaches and finally decide on which ones to backtest to come to a final conclusion.

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Around noon, Michael receives a call from a major client concerned about recent market uncertainities. He explains the steps he’s taking to manage risk and reassures the client of the portfolio’s long-term strategy.

In the afternoon, Michael spends time on in-depth research and analyzing backtested results. He backtests the strategy discussed in the meeting. He found out that the equity factors strategy didn't produce any significant outperformance over the last 15 years using Finominal's Alpha Analyzer and in fact, did poorly during market crisis times like the 2008 financial crisis and the 2020 Covid crisis using Finominal's Portfolio Diagnostics. He decides not to go with the strategy and sends the backtested report to the team via email.

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Michael’s job is demanding, with constant pressure to outperform benchmarks and competitors. However, he finds immense satisfaction in navigating the complexities of the market and achieving success for his clients.

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Now we understand how each ICP spends their day and their responsibilities. This gives us a clear picture for the next section which is Jobs To Be Done.

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ICP JTBD (Why)

🔂 Features users use the most

1. Alpha Analyzer Tool: Analyzing funds using the Alpha Analyzer tool helps both advisors and portfolio managers determine whether a fund is generating alpha.
2. Asset Comparer Tool: The Asset Comparer tool allows users to analyze up to five funds or portfolios simultaneously. This functionality helps users understand the nuances of different funds in one comprehensive view, facilitating better comparison and selection.
3. Creating Multiple Portfolios: Creating multiple portfolios in the dashboard enables users to review clients' portfolios on a daily basis. This continuous review process ensures that advisors and portfolio managers can provide timely and informed advice, enhancing client satisfaction and trust.

💎 Features users value the most

1. Portfolio Simplifier Tool: The Portfolio Simplifier tool is highly valued by financial advisors because it helps them eliminate redundant funds from portfolios, thereby reducing complexity and fees. This simplification aligns with what clients seek in their advisors, enhancing the advisor's value proposition and client satisfaction.
2. Asset Comparer Tool: For portfolio managers, the Asset Comparer tool is highly rated due to its ability to compare and contrast different investment strategies. This feature enables portfolio managers to quickly and effectively evaluate various options, speeding up their decision-making process and improving investment outcomes.

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#️⃣ How frequently do users use these features?

1. Financial advisors use the Portfolio Simplifier tool before every prospective client meeting. This tool is utilized almost daily by financial advisors, helping them to present optimized and cost-effective portfolios to potential clients.
2. Portfolio managers frequently backtest different investment strategies on a daily to weekly basis

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⌛ How much time do users spend?

1. Financial advisors use our product for anywhere between 30 minutes to 2 hours per day. This time is spent optimizing client portfolios, simplifying investment strategies, and preparing for client meetings.
2. Portfolio managers use our product for anywhere between 2 to 3 hours per day. This extensive usage involves backtesting investment strategies, analyzing asset performance, and making data-driven decisions to enhance portfolio outcomes.

JTBD Validation

User 1: Richard (Financial Advisor)

Richard is a financial advisor in the US at First Alaska National Bank. He signed up for Finominal because he loves the Portfolio Simplifier tool and uses it extensively to acquire prospective clients. Richard mentioned that his clients typically have 20-30 funds in their portfolios, which is too many. With the Portfolio Simplifier tool, he can easily reduce this number to 5-10 funds, optimizing the portfolio and reducing overall fees

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✅ Functional - Richard confirmed that the tool helps him reduce the number of funds in a portfolio and lower the overall fees.

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✅ Personal - He stated that the analytics provided by Finominal enable him to double down on his recommendations with confidence.

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✅ Financial - The tool has proven to be effective in attracting new prospective clients for Richard and growing the AUM.

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✅ Social - Richard proudly showcases Finominal in his workplace to other advisors and, of course, to both prospective and existing clients.

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User 2: Art (Portfolio Manager)

Art is a portfolio manager in Canada at Eddy Wealth Financial Services. He signed up for Finominal because he wanted to create over 30 portfolios and constantly compare them using the Asset Comparer tool. Finominal effectively helps him compare multiple portfolios and perform deep dives into different investment strategies.

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✅ Functional - Art confirmed that the tools help him easily create portfolios and compare them quickly, enhancing his workflow.

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✅ Personal - He mentioned that the analytics provided by Finominal are unique and help him make more confident decisions.

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✅ Financial - Art noted that he has created over 30 portfolios, and the improved productivity has allowed him to focus more on acquiring new clients and growing the AUM.

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😑 Social - Although Art did not explicitly confirm this, one can infer that Finominal helps him demonstrate his data-driven skills to colleagues and clients.

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Now that the groundwork is laid, it's time for the main hero to make a grand entrance.

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Onboarding teardown

Finominal_ Onboarding Teardown (4).pdf

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We are going to focus solely on the desktop web version, as there is no app for Finominal. Given that it's an analytics tool with extensive customizations and charts, it would be very difficult to use on a mobile device.

The chart below indicates that more than 80% of users access Finominal via the desktop version.

Onboarding teardown summary

1. Delay Sign-Up Until After the "A-ha" Moment: Avoid prompting new users to sign up immediately. Instead, let them experience the core value of the product first. Use CTAs like "Analyze your Portfolio" to engage users without forcing them to create an account right away.
2. Showcase the Value Before Asking for Sign-Up: Allow users to see the analytics and benefits of the platform before prompting them to sign up. This builds trust and ensures users understand the value Finominal brings to their investment analysis.
3. Clean and Minimalistic Design: Maintain a clean and minimalistic design to reduce cognitive load. Clearly outline the benefits of signing up to motivate users to complete the registration process. Avoid cluttering the interface with too many options or buttons.
4. Improve Email Verification Process: Ensure the verification email is visually appealing and professional. Avoid long, intimidating verification links. Consider automatically logging in users after they verify their email to make the process more seamless.
5. Guide Users with Tutorials and Tasks: Use tutorials and a list of incomplete tasks (e.g., save a portfolio, and analyze using specific tools) to nudge users towards hitting activation events. This approach leverages cognitive biases like the Endowment Effect, Progressive Disclosure, and Goal Gradient Effect to increase user engagement and ensure they fully explore and appreciate the platform's features.

Five Activation metrics

1. Create and save one portfolio within the First 7 Days​

• • Creating and saving portfolios is a core feature in Finominal.
  • The entire application revolves around portfolios. Once a portfolio is created, the user is highly likely to use at least 2 tools.
  • This metric indicates that a user is actively engaging with the platform's core feature of creating and managing portfolios.
  • Completing this action within the first week suggests that the user finds the platform intuitive and valuable, which can lead to long-term retention.

2. Analyze at least 5 funds within the First 14 Days:

• • There are 16 tools in total in Finominal. Each tool solves and gives clarity on a few aspects of a fund.
  • Engaging with the platform’s analytical tools shows that users are deriving value from the tools. Analyzing multiple funds early on indicates a deeper involvement and understanding of the platform’s capabilities.
  • Remember trying out 5 different funds in 5 different tools doesn't count as it could be considered as part of trying out the software. Instead, the user needs to analyze at least 5 funds using one tool. This deeper engagement can translate to higher satisfaction and long-term usage.

3. Accessing the platform on 5 different days within the first month:

• • Financial advisors and portfolio managers analyze funds/portfolios on a daily basis. Using Finominal on 5 different days within the first month shows that Finominal has become part of their analytics process.
  • Frequent usage in the initial period is a strong indicator of user interest and habit formation. If users return to the platform multiple times within the first month, it suggests they are finding it beneficial and are likely to continue using it. ​

4. ​Users who edit their portfolio at least once within the first 14 days:

• • Editing a portfolio indicates that users are actively managing their investments and engaging with the platform's core functionality.
  • Most likely, users will edit their portfolio to include a new fund to understand how it impacts the overall portfolio. Once users start thinking in terms of "what if I add this to my portfolio," they begin to actively explore different strategies and scenarios.

5. Users who download at least one report within the first 30 days:

• • Downloading reports indicates that users are utilizing the platform’s analytical capabilities to make informed decisions. The user downloads the report either for a prospective client meeting or to discuss the analysis with other peers in an investment discussion meeting.
  • This action demonstrates a deeper engagement with the platform’s features and a perceived value in the insights provided. Such users are more likely to recognize the benefits of the platform and consider subscribing to a paid plan.

6. Users who are financial advisors analyze one portfolio using Portfolio Simplifier within the first 20 days:

• • Portfolio Simplifier is the most important tool for acquiring prospective clients as it helps advisors to remove unwanted funds and reduce fees in a matter of seconds.
  • Once a financial advisor uses the Portfolio Simplifier tool and understands its capabilities, they are more likely to use it before every prospective client meeting.

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Metrics to track:

1. Number of Portfolios Saved

• • Track the number of portfolios each user creates. This metric can be gathered directly from the database.
  • If a user has saved more than one portfolio, it indicates a higher level of engagement and trust in the platform. Multiple portfolios suggest that the user is actively managing different investment strategies and sees the platform as a valuable tool for their financial planning needs.

2. Number of Analyses Run

• • Track how many analyses (e.g., Alpha Analyzer, Portfolio Simplifier) a user performs. This data can be collected from the usage logs.

3. Average Session Duration

• • Measure how long users spend on the platform during each session. This can be tracked through server logs or analytics tools.

4. Number of reports saved

• • Track the number of reports each user creates. This metric can be gathered directly from the database.
  • The more the number of reports, the higher the word of mouth. When the user downloads a report, the user most likely wants to present it to the clients and more importantly to the peers.

5. Daily Active Users (DAU) / Weekly Active Users (WAU):

• • These metrics provide a clear view of user engagement over different time frames. DAU measures how many users are actively using the platform each day, while WAU measures weekly engagement.
  • High DAU and WAU numbers indicate consistent and frequent use of the platform, which is essential for assessing overall engagement and identifying opportunities to improve user retention.

6. Completion Rate of Onboarding Tasks

• • A high completion rate indicates that users are successfully navigating the initial setup and understanding how to use the platform’s features.
  • Effective onboarding is crucial for ensuring users feel confident and competent, which can lead to higher engagement and retention rates. By tracking this metric, we can identify areas where users may be struggling and improve the onboarding process to enhance the overall user experience.

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Miscellaneous: Competitor onboarding teardown

Competitor_ Onboarding Process.pdf

That's it for today.

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