As more families look for financial advice that spans generations, wealth management firms are changing how they work. They’re focusing on helping families plan for the long term and pass wealth down through the generations. By bringing advisors and clients of all ages together, these firms are making sure everyone’s financial needs are met now and in the future.
How are wealth management firms looking to prepare? By investing in technology that will help them adapt. A Schwab survey found that 98% of advisory firms are looking to invest in new technology. Digital transformation is more vital than ever. At the top of their list, advisors are looking at technological solutions to increase their client base, reduce manual work, shift focus to high-value tasks, and improve security.
How does a document management software like Docupace fit into the equation? We’ll break down how our platform helps advisors effectively manage risk, reduce costs, and improve client relationships — all important areas of focus during economic downturns.
Manage Risk & Compliance
For advisors trying to keep afloat during economic uncertainty, it doesn’t help that regulations and cybersecurity threats are also increasing. In fact, the SEC approved upwards of 30 proposals that amend or create new regulations in the last year alone.
Some of these include increasing regulations around items like:
- Swing pricing
- Reforms to private funds
- Amendments to the definition of “broker-dealer”
Indeed, the SEC even approved two new cybersecurity rule proposals. Enforcement actions also increased, making it more important than ever for firms to avoid fines and penalties by staying compliant.
Thriving, not just surviving, will depend on advisors’ ability to stay compliant and reduce risk. At Docupace, our platform gathers information in one place, making mitigating threats and identifying patterns easier than ever. We help advisors identify red flags before a problem ever occurs.
Reduce Related Costs
The flipside of increasing compliance and security risks is increasing compliance and security costs. Deloitte found that operating costs on compliance have increased by over 60% for retail and corporate banks. That’s a massive jump, especially when you consider how it affects other discretionary spending at firms.
During times of economic turndown, saving on extra costs unrelated to the core aspects of the business is a great way to prepare your firm for whatever future lies ahead. For example, Docupace’s software helps advisors reduce disclosure processes by 65%, which can cut down on as much as $7.75 per disclosure — massive savings when compounded with various clients over time.
Not only that, but our platform simplifies complex processes, helping your firm save money on the time your advisors spend inputting information manually or meeting compliance requirements. Curious how much a document management solution could save you? Get an exact number with our cost-savings calculator.
Make Clients Your Focus, Not Back Office Work
Finally, a wealth management firm is only as strong as its relationships with clients. Without that, recession or not, your firm will have a difficult time weathering any economic conditions.
Being a successful advisor comes down to focusing on activities that directly impact your client relationships, such as sharing investment strategies and expertise on current market conditions. Unfortunately, that doesn’t include filling out paperwork.
Docupace enables your back office to run smoothly, reducing time spent on filing paperwork and increasing the time advisors have available for one-on-one interactions. That way, your focus gets shifted to where it’ll matter the most for your business — with clients.
After all, happy customers are more likely to refer more happy customers. With 55% of new RIA assets coming from referrals, investing in the client-advisor relationship is the best way for firms to secure themselves during challenging economic times. An investment in a back-office solution is an investment in your client relationship.
Learn more about how Docupace enables our clients to succeed here.
