Merrill Lynch DirectFeatures and Functionality

of Tracker, News, and Quotes Compared to Free Financial Portals

Thomas J. Bahnck

Management Science & Information Systems

Penn State University

Client Access Group Intern

Merrill Lynch Direct

Introduction

Project Overview

Tracker

Quotes

News

Conclusion

Why Compare MLD and Financial Portals?

• Offer several similar features• Portals openly accessible with larger audience• Functionality more comprehensive on portals• Feedback from IFR draws comparisons of MLD

and free sites• Usability testing suggests clients complement

online broker with Yahoo! Finance, CBS MarketWatch, etc.

Introduction

Project Overview

Tracker

Quotes

News

Conclusion

What Do Our Clients Say?

• “Why does the tracker feature not reflect stock splits automatically?” - MSN MoneyCentral automatically updates

• “Improve the news references and get them all. I have to go to Yahoo’s screens to see what is going on.” - Yahoo! Finance has 16 sources

• “I have had several requests about adding the Dow Industrial, S&P 500, American Exchange composite to the tracker quotes” (from FC) - SmartMoney.com has multiple indices

Introduction

Project Overview

Tracker

Quotes

News

Conclusion

- from IFR

MLD Site Statistics

As of July 21, 2000:

• 3,148,050 Requests for Tracker (19% of hits to Research)

• 64,086,266 Requests for Quotes (40% of hits to site)

• 3,325,510 Requests for News (21% of hits to Research)

• =All vital areas of Merrill Lynch Direct

Introduction

Project Overview

Tracker

Quotes

News

Conclusion

MLD Tracker Analysis

• Merrill Lynch lags far behind - only 16 data items available compared to an average of 38.7 and max of 65 (MSN MoneyCentral)

• Lacks basic data items such as Earnings/Share, 52-Week High/Low, p/e ratio

• Unable to track cash• Offers only 2 views, Market Data and

Performance, while other sites add Historical, Tax, Industry...

• Cannot customize views• Will not account for splits, commissions, or

dividends

Introduction

Project Overview

Tracker

Quotes

News

Conclusion

The Competitions’ Trackers - MSN MoneyCentralIntroduction

Project Overview

Tracker

Quotes

News

Conclusion

“Several Clients have requested stock names instead of only symbols on tracker” - IFR

“Several Clients have requested stock names instead of only symbols on tracker” - IFR

“In addition to showing cumulative profit/loss, show daily profit/loss for the entire portfolio” - IFR

“In addition to showing cumulative profit/loss, show daily profit/loss for the entire portfolio” - IFR

The Competitions’ Trackers - CNNfnIntroduction

Project Overview

Tracker

Quotes

News

Conclusion

“Allow us to create our own performance of our account” - IFR

“Allow us to create our own performance of our account” - IFR

Quotes Overview• Merrill Lynch level with competitors - has 5

basic features compared to average of 4.3 and 21 data items versus average of 18.3

• Offer better integration with other areas of the site: “It would be a lot easier if the quote page had my Watch List symbols across the top as links” (-IFR)

• 5-Minute chart does not use real-time data• Cannot add symbol directly to tracker

Introduction

Project Overview

Tracker

Quotes

News

Conclusion

The Competitions’ Quotes - CNBCIntroduction

Project Overview

Tracker

Quotes

News

Conclusion

Indices

Integration

Additional Features

News Functionality

• MLD news sources limited with only 3 providers compared to average of 7.5 and max of 16 (Yahoo! Finance)

• Lacks keyword search• Cannot view news for all holdings in one screen• Mixes news articles with press releases• Java dialog box complicates navigation from

tracker

Introduction

Project Overview

Tracker

Quotes

News

Conclusion

Yahoo! Finance NewsIntroduction

Project Overview

Tracker

Quotes

News

Conclusion

Filter by source

MLD NewsIntroduction

Project Overview

Tracker

Quotes

News

Conclusion

Summary

TRACKER• Needs more data items, customization, and greater

functionality• Increase max number of trackers• Provide integration with ML research and opinion

changes

QUOTES• On par, but could better integrate with other features

NEWS• Need more providers• Expand filter and search capability• Provide a view containing news items for entire

tracker/portfolio

Introduction

Project Overview

Tracker

Quotes

News

Conclusion