Wealth management advisors have a technology problem. And it isn’t the kind of problem that can be solved by throwing more money at it. Rather, it’s a strategy and implementation problem. Even with technology adoption, how can wealth management firms ensure they’re adopting the right tools?
To stand out from the competition, whether it’s robo-advisors or competing firms, wealth management companies need to ensure that their financial software is getting the job done.
In this blog, we’ll break down the problem, how to look for solutions, and how Docupace can get you there.
The Challenge in Adopting Financial Software
Wealth management firms know technology is the way of the future. Indeed, 68% of wealth advisors say they’ve prioritized technology spending in the last year. However, knowing that technology is the way to get ahead can only get you so far — just 38% of advisors say their firm is “definitely” focused on the right tools in order to stay competitive.
This has created a rising issue in the financial technology world: Advisors are adopting tools but failing to use them.
In a recent survey by Money Management Institute (MMI) and Aon, about one-third of advisors say they prefer third-party tools over the technology their firm provides. Why? Many firms have built their technology at incremental intervals over the past few decades, resulting in tools that either don’t get the job done or are too difficult to adopt and continually implement over time.
A separate survey confirmed this. Only 42% of advisors say their technology is “very well prepared” to meet their employees’ needs.
The icing on the cake? Failing technology tools also affect the client experience, and over half of clients indicate they aren’t satisfied with their advisor’s digital tools. Indeed, only 32% of advisors say their technology is “very well prepared” to support clients’ needs.
Simply put? Many financial technology tools don’t meet advisor needs or client needs. Advisors aren’t adopting the tools provided, and clients are increasingly expecting wealth management firms to up their game.
Why the Right Technology Makes the Difference
It isn’t all bad news, however. Many financial tools are easy to adopt, implement and keep updated through all the changes of a technologically-advancing industry.
Indeed, in MMI and Aon’s survey, a common problem that advisors encountered from their technology suite was having tools that weren’t able to easily interact with each other.
“The classic example is the CRM system that doesn’t communicate well with the financial planning system, so the advisor has to re-input the client information from the CRM system into the financial planning tool to produce a report,” said Peter Keuls, Aon’s global head of wealth management.
By keeping a few items in mind, wealth advisors can make sure they don’t purchase the wrong tool and that all their technology integrates with each other.
Here are a few tips for choosing the right tool:
- Choose tools that keep it simple. Tools should be easy to use and provide simple solutions to problems. 85% of clients say they prefer simpler tools with more integrated features versus additional features.
- Choose tools that save time. Increasingly, advisors are being forced to spend less and less time with clients and more time on back-end activities. A tool that frees up time by eliminating repetitive tasks is worth its weight in gold!
- Choose tools that integrate across platforms. If it doesn’t play nice with your CRM, financial planning tools, or execution platforms (email, calendar, etc.), it probably isn’t worth adopting.
The Docupace Difference
In contrast with many existing financial platforms, Docupace provides a clean, simple, and easy-to-use solution for document management. For example, our Digital Organizer enables firms to manage client documents, compliance requirements, and security needs.
We believe your technology platforms should streamline the work you do, not add additional work to your plate. Check out our platform overview to learn more.
