Digital transformation is an essential concept for all businesses in our modern, connected world. Wealth management firms are no exception. The old ways of doing business, marketing and connecting with clients are no longer relevant as clients increasingly want a digital experience. Investors who give their advisors top marks on their digital systems tend to feel significantly more confident about their financial futures.
But embarking on a digital transformation can be daunting. Although 97% of firms have taken steps towards digital transformation, nearly half say they are still in their infancy. Clearly, there is trepidation and uncertainty about where and how to start.
No matter the size or specialty of your firm, there is always room to enhance or improve your digital efforts. Here are five questions to jumpstart your digital transformation
1. What are the Roadblocks and Bottlenecks?
One of the biggest signs your firm needs a digital transformation is if you are spending lots of time manually repeating processes. Consider the tasks you do multiple times or that tend to slow down the client onboarding or new account process. These tasks take up your time and pull you away from more meaningful work.
Even small bottlenecks can add to significant productivity losses. Most advisors only spend 20% of their time meeting with clients because a large portion of their remaining time is used for administrative tasks. And when advisors and back-office staff spend most of their time on repetitive tasks and data entry, they aren’t thinking strategically, growing the firm, or building client relationships. These roadblocks and bottlenecks can significantly slow firm growth and are areas ripe for digital transformation.
2. Where is Your Risk?
Everything you do manually increases the risk to your firm. Every time a piece of client data is entered by hand or moved between disparate systems, it is at risk for being entered incorrectly or lost altogether. The increased risk of a cybersecurity attack also puts your clients’ personal and financial information at risk.
Evaluate your compliance, trading and recordkeeping to identify the risk and if it is increased through manual systems. Look at where data pitfalls have occurred before and what compliance areas tend to bring the largest issues. Digital transformation can streamline processes to reduce risk and increase compliance. Storing documents digitally in a secure, cloud-based system is the best way to reduce risk and protect your clients’ information.
3. How Can Your Systems Better Integrate?
One of the biggest technology hurdles for firms is a lack of integration between core software applications. You might have strong systems in place, but if they aren’t working together, you could still have inefficient processes or things falling through the cracks. Look for tasks you have to repeat across applications or areas technology isn’t connected.
An example of a software gap is if client information is stored in multiple places or if you have different software for different types of accounts. A client may have information spread across numerous systems, which makes it difficult for advisors to track their accounts and make investment recommendations and can confuse clients about the current state of their finances. An integrated system keeps all information in one place to streamline processes for everyone involved.
4. Does Your Current Technology Have a High ROI?
Digital solutions and software should provide value for clients and employees by improving workflow, creating efficiencies, and enhancing the client experience. But if your outdated technology isn’t providing value, it is likely time for a refresh.
Consider the time, resources, and energy you pour into outdated and clunky technology. If those roadblocks are lowering morale and getting in the way of growth and productivity, they are taking away value from your firm. Look for the biggest opportunities to increase value, such as the quickest wins or the biggest headaches and use that as a starting spot for your digital transformation.
5. What is the Competition Doing?
Many firms and advisors have already embarked on a digital transformation. Pay attention to high-performing firms and mirror their strategies. Digital transformation is so pervasive that the template is already there.
If a firm excels at client onboarding, discover the tools and processes they use to succeed. If they have a streamlined compliance system, use it as a template in your firm. Ask around industry groups and pay attention to what’s happening in the market so you know the opportunities and best practices.
Digital transformation is an ongoing process that can set your firm up for long-term success. Your best partner for digital transformation is Docupace, a leader in cloud-based document management. Click here to learn more and set up your free demo.
