Most financial advising firms understand the importance of technology. They appreciate technology’s potential to help reduce errors, improve the client experience, serve more clients, and focus on higher-priority tasks. They know software can help them automate portfolio rebalancing and data aggregation processes, help organize documents, and keep client information secure.
Yet many firms don’t use technology to its full potential. The biggest reason? Lack of integration. According to InvestmentNews Research’s 2022 Adviser Technology Study, 57% of advisors say lack of integration is their biggest technological roadblock.
Fragmentation makes it necessary for advisors to use multiple applications, which wastes time and slows productivity. The average firm uses five different technology vendors, each of which is selected individually. But it doesn’t have to be this way.
When your firm streamlines its technology solutions to create a fast, smooth, and responsive client experience, your advisory firm projects competence, efficiency and innovation to clients and prospects… Not to mention likely saving your firm time and money.
Managing Integrations for Maximum Success
Advisory firms are acquiring or partnering with fintech companies more rapidly than ever before. In 2019, 49% of financial institutions regarded fintech partnerships as important to their business. That number was 89% by the end of 2021.
Unfortunately, lack of integration is a primary reason for acquisition failures. Although some firms consider their dissatisfaction with financial technology software to be an information technology issue, the problem may not be technical. Traditional integration practices, which consolidate new technology into a firm’s existing infrastructure, may respond to immediate concerns but don’t always account for organizational needs and future growth.
Alternative integration strategies incorporate the firm’s processes, goals, outcomes, and culture into the acquisition of new technology. When firms take a holistic view of their goals, technology becomes a growth strategy. This allows advisors to align their technology with current and future needs rather than adopting patchwork solutions to assist with specific tasks. Some firms take advantage of customer experience management (CXM) technology to address fragmentation issues, integrating disparate processes into a more aligned customer experience.
Whether you use CXM technology or not, treating your technology acquisition as a growth strategy and including your firm’s processes and goals in your decision will help maximize your investment in the long term and create a smoother transition to new tools and systems in the immediate future.
Integration: Which Fintech Solutions Live Up to the Promise?
You may be familiar with this scenario: You invest in new technology, but it doesn’t live up to expectations. Unfortunately, that’s all too common.
When you’re selecting the best integration-friendly technology for your firm, consider five factors in your decision to help avoid tech regret:
1. CRM Compatibility
Many firms use their CRM as the hub of their tech stack. If your software doesn’t integrate seamlessly with your CRM, you’ll be switching between tools every time you contact a client.
2. End-to-end Workflow
Your software solution should provide solutions for every step of the client experience. When the entire process is automated within a single ecosystem, you don’t have to exit and enter multiple applications. Your client experience will be much smoother if you can access client contact information, update documents, add new beneficiaries, and track accounts within the same application.
3. Compliance Tools
To help avoid time-sucking situations like rejections and NIGOs (not in good order rejections) with a new client, you need built-in compliance tools to validate documents before they are submitted.
4. Single Document Storage Location
Many firms store documents in multiple locations. This creates potential errors, especially if you have multiple clients within the same family or frequently update documentation. With a single document storage location, you only need to change information once to update all records automatically.
5. End-user Experience
Your software solution should be easy to use, not just for your advisors and employees but also for clients. Training employees to use new technology may be expensive if there’s a steep learning curve. The same holds true for clients. When clients complete documents, the process should be intuitive. Make sure client-facing applications are responsive, helpful, and easy to use.
When considering a technology upgrade, you may be tempted to buy the first solution that responds to your immediate needs. But if your software doesn’t fully integrate with your tech stack, you may regret your investment. When you consider the needs of your clients and your firm’s goals, processes, and growth, you’re better equipped to find a lasting solution. It’s also helpful to weigh the software’s performance against factors such as CRM compatibility, end-to-end workflow, and compliance tools. This prepares you to find an effective, powerful, and fully integrated fintech solution that will improve your client experience and automate multiple processes.
If you’re ready to learn more about how Docupace’s integrated technology can streamline your software applications and become your firm’s one-stop software solution, click here for a free demo.
