In part 1 and part 2 of this series, we featured Joel Bruckenstein’s interview in Baron’s magazine along with a report titled “Wealth and Asset Management 2022: The Path to Digital Leadership.” Both are reputable resources of information for advisors who are weighing in on the idea of enhancing their practice’s value proposition by upgrading their tech. There is no better time to transition technology to more enhanced systems amid the economic turmoil created by COVID-19. Why, during this era, would advisors consider this move? Joel Bruckenstein’s interview provides more insight:

Q: Let’s reach back to the prepandemic era. What’s been the biggest technology trend over the past few years?

Bruckenstein: “One has definitely been the trend away from the advisor as investment manager and to the advisor as comprehensive wealth manager. This has been playing out for a while, but it certainly accelerated over the past three to five years.

It obviously has major implications for technology, because you’re going to base your tech spend on where your value proposition is. The other one is the digitization of the advisory business. Robo-advisors, digital onboarding, money movement — there are so many things we’re doing digitally now that nobody was doing five years ago.”

Barron’s: But independent advisors are independent for a reason. Wouldn’t they have a problem relying on a single, end-to-end provider?

Bruckenstein: “You have to weigh the benefits versus what you’re giving up, and I think that’s a different equation for every firm. Also, 10 or more years ago … moving data to another system was really, really painful. It’s not nearly as painful as it used to be, and there are ways to automate a lot of it.

It’s the same thing with custodians. A lot of these folks didn’t want to become too beholden to one custodian. But where transfers used to take a month, let’s say, I think everybody is a lot more efficient moving things around today. The downside isn’t as onerous as it used to be, and that plays into people’s thinking.”

AdvisorPeak has lined up some of the leading best of breed providers as our partners when it comes to selecting components to build out your tech stack. Our integrations and open API mean no downtime for advisors who want to transition to advancing component systems amid industry compression and COVID-19. As this series ends, we hope you are more knowledgeable regarding what technology to buy in 2021 and why.

In closing, we believe that technology components should add one by one based on your firm’s needs. We encourage you to contact us to find out how our trading and rebalancing software, combined with best of breed providers, allows you more time with clients, thus increasing your bottom line.