UX Designer
Distro
Distro By,
Erik Moore (Main)
Matt Kummer
Nolan Kraynak
​
Project Guided By
Sr. UX Researcher at Google & Lecturer AT CUB
​
Project Time Frame: Spring 2024
Distro was founded by a wealth management professional to address a gap in the financial planning process: while tax-efficient income distribution is often discussed, it is not effectively planned or visualized. Distro calculates the specific dollar amounts to be distributed from investment accounts based on tax treatment to minimize lifetime taxation. It examines client account types, values, and growth rates, then adds retirement income sources like pensions and Social Security. By considering budgetary needs, spending goals, and inflation, Distro provides an optimized plan to minimize tax exposure. The plan is presented as a spreadsheet and a PDF report showing total taxes paid in a baseline scenario versus the Distro-optimized scenario.
UX Research Team
Distro's Core Functions
Status of client’s financial positions across different types of accounts.
Snapshot income & needs to show the gap between current income sources and the income required to maintain a desired lifestyle in retirement.
Compare tax savings (in dollars) over time of the advisor’s optimized plan versus the baseline plan.
Distro team's mission
“It’s our mission that any advisor can pick up our software and within a few clicks deliver a high quality, highly efficient retirement distribution plan for any of their clients: big or small.”
Product Challenge
Distro's product challenge involves developing a B2B solution that optimizes the wealth advisor's workflow by:
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Eliminating manual processes
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Generating polished, accurate PDF reports swiftly
The product aims to provide insightful and comprehensible insights to aid advisors in client retention and acquisition without adding unnecessary complexities or requiring extensive customer support.
Study Impact
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Comprehensive Understanding: Gain a deep understanding of the challenges in retirement distribution strategies and the perceived value of the Distro product among target clients.
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Insight Gathering: Collect insights into advisors' expectations, information requirements, and desired features.
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Enhanced UX: Ensure the product UX delivers maximum value by providing intuitive navigation, ease of use, and seamless integration into current workflows.
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Addressing Concerns and Professionalism: Address any concerns advisors may have, emphasize the financial advantages of their strategies, and present advisors as outstanding professionals to their clients.
Research Overview
UX Research involves understanding what people want and need before building a product. We achieve this by engaging with users, observing how they interact with products, and testing ideas with them. This approach helps us create products that are user-centric, easy to use, and enjoyable.
Importance: By identifying and resolving usability issues early, UX research reduces development risk and avoids costly rework. It ensures that the products we design are truly useful, enjoyable, and meet user expectations, leading to increased user adoption and loyalty. Products that are easy and satisfying to use result in higher engagement and customer retention.
Client Benefits: Design choices are based on user insights rather than assumptions, enabling data-driven decisions. By investing in features that users truly value, we maximize return on investment (ROI). User-centered products that resonate with the target audience provide a competitive edge, helping clients stand out in the market.
To synthesize this accurately, we opted for the following research methodologies
Desk Research
Hypotheses...
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Understand the problem space: Financial advisors need a tool that simplifies retirement distribution planning, addressing common pain points and reducing manual calculations.
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Understanding Needs for the New Software: Advisors value easy-to-use software that generates clear reports and integrates with existing workflows.
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Evaluate Distro’s Platform: Advisors will pay for software that improves client retirement distribution planning.
Remote In-Depth Interviews
​Hypotheses...
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Understand the problem space: Financial advisors spend a lot of time manually calculating retirement distribution strategies. There's a lack of effective retirement distribution planning tools in the market.
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Understanding Needs for the New Software: Financial advisors want retirement distribution software that is easy to use, generates clear reports, and integrates with their existing workflow.
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Evaluate Distro’s Platform: Financial advisors will pay for software that improves client retirement distribution planning.
Questions we asked!
Desk Research
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The target user of Distro?
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User perception of tools like Distro?
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Typical day-to-day work of the target user?
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Existing software for retirement distribution planning?
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Usage of current software?
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Functionality and features offered by existing software?
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Comparison of competitors' features to Distro?
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Emerging trends in B2B fintech software?
Remote In-Depth Interviews
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Challenges financial advisors face in retirement planning?
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Tools or software used for retirement distribution planning?
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Missing features in current tools?
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Making retirement distribution planning software user-friendly?
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Importance of clear reports for clients? Professional image?
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Does Distro meet advisors’ expectations?
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Value for financial advisors? Perceived utility?
Likes and dislikes about Distro?
Study Limitations:
Desk Research: Early-stage challenges included a lack of financial fluency, hindering the grasp of financial concepts, and missing out on live demos, impacting the evaluation of competitor platforms' suitability and functionality.
In-depth Interview: The study solely examined financial advisors' perceptions of Distro. We did not interview the retiree clients, thus unable to assess their views on Distro's distribution planning and client PDF reports.
Target Users of Distro Finance
Financial Advisors
Understanding our users' problem space reveals the most significant challenges financial advisors face in retirement distribution:
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Creating client-ready financial reports.
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Managing administrative tasks and manual data entry.
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Addressing healthcare costs and life expectancy.
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Aligning spouses on financial plans.
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Aggregating accounts and managing complex tax issues (e.g., timely distributions, penalty avoidance).
Desk Research
Current Solutions For Financial Advisors
B2B
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E-money, also known as electronic money, is a digital form of cash stored and exchanged electronically. It facilitates online and offline transactions, promoting convenience and efficiency.
Betterment offers automated investing, high-yield cash savings, and tax-advantaged IRAs. It manages portfolios, minimizes taxes, and maximizes returns.
Navi Plan is a financial planning tool financial advisors use to create comprehensive financial plans for clients, considering various aspects of their financial lives.
Money Guide Pro is a financial planning software that helps users create retirement plans, analyze investments, and make informed financial decisions.
Acorns round up everyday purchases and invest the spare change in diversified portfolios. It also provides a high-yield cash account and retirement planning options.
Mint is a personal finance app that helps users track their accounts, budget, and investments in one place. It offers insights into spending habits and investment tracking.
B2C
Existing B2B Solutions (Direct Competitors)
eMoney: Secure client portal, analytics and custodian integrations, account aggregation, product training and support. Source
MoneyGuide (Pro & Elite): Interactive client portal, custodian and education tool integrations, account aggregation, Elite offers tax planning for optimal distributions. Source
NaviPlan: 35% faster plan creation, account aggregation, integrations, advanced tax, cash flow, estate, and retirement planning. Source
Solutions Comparison
Competitive Analysis of Leading B2B Financial Platforms: What exclusive features on each competitor platform enhance their market position, focusing on retirement distribution income & tax planning?
Key Differentiators: distinguishing it in the financial services sector.
Advantages of going with the competitor (versus Distro).
Unmet Needs for the Current Software
EMoney:
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Advisors struggle with quickly and easily finding the information they need
Navi Plan:
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Ability to make fundamental changes to the financial plan as needed
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Input various scenarios such as windfall money (ex., inheritance or severance payments)
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Facilitate modifications throughout the plan's duration
In-depth Interview
Understanding Our Participants
01
Scope of Interviews
Total Number of Interviews Conducted: 5
Duration of Each Interview: 45 Minutes
Interview Format: Virtual
03
Recruitment Process
Recruitment Platform: UserInterviews.com
Selection Criteria: Financial Advisor/Financial Planner with minimum work experience of 6 years
02
Participant Demographics
Age Range: 25 to 55
Educational Background: Minimum of Undergrad or College experience
04
Professional Background:
Occupation Titles: Financial Advisor/Financial Planner
Industry Representation: Financial Services
Our Interviewees
Interview Structure
In-Depth Interview Findings
Overall Impression: Advisors found the interface basic but intuitive and easy to navigate, with potential for additional features.
Client Information Visibility: More visible client information is needed to enhance functionality.
What the Advisors Liked
"Schedule distributions. OK, I like this."
"It has the different columns, which I kind of. It's a well. It's a good way to stay organized. It seems like. So I like the fact that...OK, right off the bat , in 2024, Distro tells me how much they will be distributing from which accounts, I like that."
"Oh, interesting, new car. I like that you can put that in there. I mean, that's true life...things like this will come up."
"Yeah, I like that It has the base annual needs....that it's the first thing you see. That's what you're aiming for."
What the Advisors Disliked
Orange Dots: "What do these little orange dots mean next to these numbers?"
Focus on Account Balances: "I don’t think the lifetime tax savings should be focused here at the top. I would rather this show their current account balances."
Hover-Over Context Feature: "It would be nice to have a hover-over feature to provide additional context on future balances."
Editable Rates of Return: "I wish it had editable rates of return for accounts."
Client Profile Customization: "It would be nice to be able to put in children’s information in client’s profile."
Account Balance Assumptions: "I'm assuming that Jane didn't have an account balance after, I think three years. Does that mean that her account is at 0? Or is the retirement plan suggesting let's stop drawing from this account and start drawing from another one?"
Expectations:
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Limited Features: Lacks tools for creative planning and comprehensive reports with visuals.
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Specific Use Case: Benefits specific retirement needs but lacks broader utility.
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Functional Depth: Less functionality and depth than comprehensive tools like eMoney, making it less suitable for complex needs.
Value Proposition:
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Limited Value: 3/5 advisors see limited value due to narrow focus and lack of integrations.
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Adequate Existing Tools: Current software already meets advisors' retirement planning needs.
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Preference for Broader Features: Advisors prefer tools with more extensive features and integrations.
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Clarity Needed: The focus on "retirement distribution" is not immediately apparent without industry knowledge.
Integrations:
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CRM Integration: All advisors use separate CRMs, and integrating them with the new software would improve data management.
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Banking Integrations: Integration with bank accounts (e.g., Chase) is desired for efficient data import and accuracy.
Design Feedback:
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Positives: 2/5 advisors appreciated the interface simplicity, especially the few core tabs.
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Negatives:
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Avoid using "Dead" in the slogan.
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The software name should clearly communicate its service.
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The layout is "text heavy" and needs a more balanced visual design.
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Security + Privacy:
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Secure Transactions: Emphasized the need for secure money transactions between accounts.
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Security Concerns: Necessity for a robust security system.
Pricing Range:
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Initial Suggestion: The current iteration should be free.
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Ideal Range: $400-$500.
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Purchase Option: Interest in an option to buy outright after a few months.
Barriers to Adoption
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Secure Data Transfer: Streamline secure transfer of client data from existing systems to Distro.
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Accuracy Concerns: Address accuracy issues within the software.
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Training Options: Ensure comprehensive training is available for users.
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Financial Transactions: Enable direct financial transactions between accounts on the platform.
“...but It's not a comprehensive way of doing financial planning and that's why I wouldn’t (use it).”
Consumer Opportunity
Embracing B2C Market Entry Amidst Untapped Demand for Financial Advisory Services
Individuals aged 50 and above nearing retirement are less likely to seek professional help, with 62% foregoing financial consultation, according to an AARP survey of 1,002 adults in December. One of the primary reason cited by 30% is the inability to afford a financial professional.
Main Takeaway
1 . Shifting focus to the B2C market (People who don’t have financial advisors)
2. Enable Financial Advisor Success
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Optimising Integrations​
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Simplifying Reports
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Seamlessly Migrating Data
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Offering Expert Training and Support
Why do we say, what we said...
“Not really, because it's kind of focusing on one part of a financial plan, But it's not integrating the different parts.”
Reluctance Over Tool's
Narrow Financial Planning Scope
Advisors favor software covering all aspects of financial planning over tools focused solely on retirement distribution.
Dependency on CRM Tools
To Stay Efficient and Organized
Financial advisors integrate CRM tools with financial planning software to maintain client communication and facilitate transaction follow-ups.
“I use the CRM Salesforce as my main record-keeping system,
and I spend
 much time making notes, contacts, reminders.”
“Sometimes
I find it difficult
to get the information that
I want simply. You have to generate a report before you can see it; It's a lot of text and material.”
Friction in Generating
Customized Reports for Client Sharing
Complexities in tailoring reports to match client preferences, leading to inefficiencies and communication hurdles.
Seamless and Secure Client Data Migration Between Software
Financial advisors face challenges transferring client data between software platforms, often resorting to manual data entry. This process is time-consuming and causing frustration advisors.
“...which I don't
even think still doesn't exist, is the ability to transfer client data between platforms.
Right? I have so much data in eMoney to transfer.”
Recommendations for Distro
Alternative Solution Provider
Transitioning from B2B to B2C:
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Tailoring retirement solutions for self-directed individuals who do not engage financial advisors.
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Prioritizing more UX research for informed decision-making.
Learning from the Competition
Providing Training and Material Support:
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Equipping financial advisors with training and resources for seamless adoption and proficiency.
CRM Integrations:
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Leveraging CRM tools as indispensable assets for financial advisors in modern business operations.
Enhancing UX & Personalization
Giving Flexibility on Customized Reports:
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Customized reporting improves clarity, builds trust via personalized communication, and fosters collaboration between advisors and clients.
Hassle-free Migration of Client Data:
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Financial advisors struggle with transferring client data between software. Prioritizing seamless migration prevents manual entry, saving time, avoiding errors, and reducing frustration.
