Small Biz Provider Targets New Channel

401KWIRE.COM
October 19, 2005

(401kWire.com) - Just as many 401(k) providers are looking to gain distribution through the payroll channel, one provider is moving in the opposite direction.

San Francisco, California-based Decimal, Inc., the company behind The Online 401(k), has historically found success in the payroll and RIA channels. Now, Decimal is looking to expand sales from registered representatives, said Chad Parks, chief executive officer of the company.

Because registered reps are often uncomfortable crafting investment menus, Decimal is helping brokers identify packages of investment options and the associated trails with the selections. That way, the broker can focus on selling the plan, said Parks.

"We want to develop the registered rep. channel so that it is as strong as the RIA and the payroll channel by mid-year," said Parks.

But the company is not neglecting its better-developed channels. Decimal recently launched an "advisor-friendly" program that offers advisors a co-branded product. The program offers advisors 10 points of co-branding, said Parks, including a "Powered By" logo on the plan website, other home page space, links to the advisors website, and contact info pages.

The program also gives advisors access to a partner hub that provides information on participation rates, investment policy statements, plan balances and contributions, and a means to communicate with plan sponsors.

Also in the works at the seven year-old company is a rebranding campaign and new websites. Both the plan sponsor and participant online enrollment websites have been revamped, said Parks.

Decimal counts more than 1,200 plan sponsor clients. The company's model is what Parks terms an "open-architecture, fully-bundled" product, where sponsors can choose from approximately 35 mutual funds. Self-directed brokerage accounts are available through Charles Schwab.