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Key Technology Every Wealth Manager Should Consider

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A financial advisor researching wealth management technology tools for his firm.

Incorporating technology into your advisory practice can help save money and increase efficiency, leaving you with more time to focus on your clients. Navigating the wealth management technology landscape may seem a little intimidating, but embracing the right tools could transform your business. Here are some of the most important types of wealth management tech advisors should consider using.

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Essential Wealth Management Technology Tools

When deciding which technology innovations to implement in your business, it helps to ask the big question first: What can this do for me and how it can help me better meet the needs of clients? Secondary to that, it’s important to consider the tangible and intangible costs of building out a tech stack.

For example, using a new tool would require a lengthy ramp-up period to ensure everyone on your team is equipped to use it, that’s something to factor into your decision-making. With that in mind, here are eight useful ways to leverage wealth management technology.

1. Portfolio Visualizers

Portfolio visualizer tools allow you to plug in your clients’ data, and then create a visual projection of outcomes based on different scenarios. This type of tech tool can be essential for organizing and analyzing data more efficiently, saving you and the client time. It can also allow you to provide clients with in-depth insight into how their financial outlook may be affected by their investment choices.

2. File Management Tools

Handling documents and paperwork can be one of the most burdensome aspects of running a wealth management firm, particularly if you have a larger client base. File sharing and file transfer tools can make it easier to retrieve documents in digital form and share them with the relevant parties. That can significantly cut down on paperwork and save time when you need to pull specific documents.

The best file-sharing tools are designed with privacy and security in mind. That’s important to consider as your clients may want reassurance that their information is stored securely.

3. Customer Relationship Management (CRM) Software

Your customer relationship management software is effectively command central for connecting with prospective clients and organization client information. A good CRM should allow you to track leads and identify sales opportunities while facilitating a positive customer user experience. CRM software for wealth managers can help you create custom workflows and automate processes, with the best programs being designed to easily integrate with the other components of your tech stack.

4. Customer Communication Management (CCM) Tools

Marketing is necessary to promote your business and like other wealth managers, you may be leveraging multiple channels to deliver your messaging to prospective and current clients. A customer communication management tool allows you to keep track of the various marketing campaigns you may be running, as well as the transmission of other messages to your client base.

Using a CCM can make it easier to create targeted or personalized messaging for digital and print marketing campaigns. You might find this type of tech tool especially useful if you’re marketing different messaging via social media, email and direct mail.

5. Onboarding Software

When a new client comes into your business, it’s to your advantage to make the onboarding process as seamless as possible. Client onboarding software can handle every step of the process, from prospecting to new account opening, while ensuring that your firm is meeting the necessary compliance requirements. The best tools integrate with your CRM to allow for the easy transfer of client information and allow clients to sign all required paperwork electronically for convenience.

6. Scheduling Tools

Scheduling tools can take the stress out of planning your daily round. These tools can help you track client meetings or other important appointments so that nothing slips through the cracks. If you don’t have an in-house administrative assistant or virtual assistant who handles scheduling for you this type of tool might be a welcome addition.

7. Wealth Management Software

Wealth management software can be indispensable when overseeing client accounts. Depending on which tool you’re using you may be able to:

  • Create consolidated views of client portfolios, tracking assets you manage as well as those held away
  • Analyze portfolio data and generate customized reports that incorporate visual elements
  • Provide clients with an easily accessible personalized dashboard from which they can view their accounts
  • Integrate with other wealth management technology you’re using to save time and boost efficiency

When comparing tools consider the full range of features included. For example, does the wealth management software include scenario modeling and forecasting? Will you be able to access rebalancing functionality or easily streamline client billing? Asking those kinds of questions can help you find the right wealth management software for your firm’s needs.

8. Compliance Software

Making sure your wealth management firm is compliant with all relevant federal and state laws or regulations can be time-consuming, particularly if you’re spending a sizable amount of time simply trying to keep up with changing rules. Compliance software tools can handle the most vital back-end tasks, whether that means ensuring that documents are properly notarized or safeguarding client information.

Key Tech Trends in Wealth Management

Financial advisors discussing wealth management tools to help attract prospective clients to their firm.

Technology is always changing, and the most successful wealth managers or advisors are the ones who manage to stay ahead of the curve. With that in mind, here are three trends that may have a significant impact on wealth management going forward:

  • AI and machine learning. Artificial intelligence is already making its presence felt in the financial services industry and it’s expected to play a growing role in how advisors and wealth managers do their jobs. Specifically, AI and machine learning may impact core tasks such as portfolio management and risk assessment as wealth managers strive to make more informed decisions.
  • Automation. Automating processes can save advisors and wealth managers valuable time while reducing the risk of errors. Some of the processes that technology is equipped to automate include the client onboarding process, account reconciliation and data organization.
  • Data analytics. Wealth managers often deal with substantial amounts of data when determining how to manage client portfolios. Digesting vast amounts of data can be time-consuming, however, and that’s another opportunity for tech innovations to meet a specific need. Advisors who have access to big data and the tech tools to analyze them quickly may have a competitive advantage when it comes to spotting investment opportunities or developing risk management strategies.

These types of tech trends can have positive implications for advisors and wealth managers who are looking for ways to streamline the way they run their businesses. Some tech advances, on the other hand, challenge the traditional advisory model.

Robo-advisors are a notable example. The robo-advisor model takes the human advisor largely out of the equation, with advice based on an algorithm. Wealth management platforms that use this approach have gained popularity as they’ve presented investors with a low-cost alternative to hiring an advisor.

While that might make some advisors uncomfortable, it’s important to remember that an algorithm isn’t a substitute for real-world experience. Investors who value the skills and expertise that a human advisor can offer will continue to seek them out. Wealth managers, meanwhile, should be prepared to learn how to leverage tech more effectively so they can better meet the needs of those clients.

Bottom Line

A financial advisor creating a checklist to integrate wealth management technology to her advisory business.

Embracing wealth management technology can help you build a better, more sustainable business over the long term. Staying up to date on the latest tech trends makes it easier to adapt and pivot, if necessary, as new tech tools come along.

Tips for Growing Your Advisory Business

  • If you’ve put off setting up a professional website for your advisory business, you could miss out on opportunities to get noticed by your target client base. It can take time, however, to begin seeing a steady stream of organic search traffic. If you’re ready to start getting more clients now, you might consider investing in lead generation services. With a tool like SmartAdvisor, you can connect with prospects that can match your client profile while still having plenty of time to work on other essential tasks to grow your business.
  • Automation tools can make it easier to manage your marketing campaigns. Some of the tasks you can automate include scheduling social media content, scheduling blog posts if you have a blog component on websites and scheduling email newsletters. You can also use AI writing tools to draft the marketing content you plan to share or repurpose content you’ve already created.

Photo credit: ©iStock.com/FlamingoImages, ©iStock.com/VioletaStoimenova, ©iStock.com/damircudic

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