Wealth management firms are increasingly expected to adopt and expand their digital offerings. But, the pace of innovation and the vast selection of tools and platforms available can be overwhelming, and some RIAs fear picking the wrong tool or missing out on the right one – the industry’s definitely under attack from the FOMO monster.
With the dazzling array of options, how can RIAs be sure they’re giving clients the experience they want, include the services sure to draw in younger investors, and still manage their technology budgets? Here’s how to choose the right technology and deliver the best experience for potential clients: Automation, Integration and Collaboration.
Increase Efficiency with Automation
Every RIA has tasks that are good candidates for automation. Whether it’s new client onboarding, compliance, or reporting, finding the right technology to automate these processes allows RIAs to scale and grow their business, increase their efficiency, and provide a consistent result every time.
Documenting the pain points in your business is the first step to making sure you pick software or technology that will actually solve your biggest problems. A list of features can only get you so far; seeing the benefits of how a platform or solution can function in your specific use cases is worth its weight in gold.
Technologies like robotic process automation (RPA), when deployed in conjunction with a strategic plan, measurable business goals, and buy-in and consensus from stakeholders, can be a way to make big gains in technology quickly.
Build a Better Tech Stack with Integration
One of the biggest challenges for wealth management firms and other financial services industries just getting into expanding their tech footprint is ensuring that the tools they choose integrate with their existing system contribute to their overall picture instead of fracture or piecemeal their reporting and automation. In an InvestmentNews study, 58% of firms reported that a lack of integration between core software applications was one of their biggest pain points or hurdles in technology processes.
Integrated systems ensure that information can be entered once and automatically update and flow into other systems and applications. Updates to CRMs are automatically populated in customer portals and reporting, allowing both the client and the advisor to have the most up-to-date information at all times.
Removing the manual efforts of syncing and reconciling fractured systems frees up advisors to work on the client-facing activities that matter to their business. In a report from Envestnet, they note that these technologies not only save time, they also bring in new markets, “Advisors leveraging these technologies have been able to lower their account minimums to open the market to work with emerging investors (while maintaining profitability) due to efficiencies gained from an integrated platform.”
As RIAs clientele continues to shift, meeting their expectations with digital tools will be essential.
Reaching a New, More Diverse Market
Younger, more diverse investors are looking for advisors that can provide the type of high-quality, personalized experience they’ve come to expect from their B2C transactions. Digital tools that offer investment education, robust on-demand reporting, and easy communication tools allow these investors to feel bought in to their wealth management plan. It also builds trust and provides a unique, collaborative experience.
For many RIAs, building a technology stack from scratch isn’t feasible. Choosing the right technology partners and vendors is a critical decision that can make or break prospecting, client retention, and efficiency in a wealth management firm. To meet these challenges, RIAs should seek out integrated, tested, and proven tools that work with their specific businesses and needs. Incorporating digital tools and digital transformation is a journey, not a one-and-done step. With the right partners and expertise to guide technology decisions, RIAs can continue to provide the value and experience their clients expect for years to come.
Ryan George is the Chief Marketing Officer at Docupace. He is responsible for the company’s brand awareness, early-stage sales pipeline, content strategies, customer and industry insights, internal and external communications, design, and events. George actively engages in leadership roles in both the financial services and marketing communications communities. He a member of the Forbes Communications Council, an invitation-only, fee-based organization of senior-level communications and public relations executives, the CMO Council and the CMO Club.
