In financial services, the advisors that are ahead of their time in their thinking, their technology, and the way they see the future of their business are the ones that scale quickly in amassing clients.  Those that embrace new technologies position themselves and their clients ahead of the crowd in an industry that has lagged in technology compared to other sectors.

With fee compression at the forefront, advisors must be agile in their FinTech (Financial Technology) choices by using software that provide multiple solutions for themselves and their clients. In point, the spending must immediately produce results when there is less money coming in from traditional product sales. This trend will not reverse and will continue as more players compete in the ‘no-fee war.’

The fee compression doesn’t mean that advisory practices will have less revenue over time. If advisors couple financial advice with smarter FinTech, they can compete and survive in the same arena as the big players. There is no doubt that technology has made portfolio management more efficient within the financial advice industry. Now it needs to be used as a ‘secret weapon’ in growing independent advisory practices.

Each advisor must gauge if multiple or a single FinTech is best and what problems can efficiently solve for the cost. Advisors must also consider if the ‘free-version’ provided by their clearinghouse (possibly the same clearinghouse that is eliminating commissions) is inadequate in helping them to compete. In this industry, time is valuable, and the more time spent on trading and rebalancing reflects the cost of doing business.

Asset allocation isn’t what clients pay their advisor for because FinTech can provide that more efficiently than humans can. Advisors receive compensation for the advice they give related to their client’s complicated financial life. As an advisor, you must consider if your FinTech software is providing enough benefit to your clients to justify your compensation. Your FinTech software choice should include:

  • Technology to create individualized portfolios based on the individual client’s needs and not ‘cookie-cutter’ portfolio choices. 
  • Ability to utilize ETFs across all fund families combined with other investment options that are appropriate to each client based on their investor profile.
  • Implementing technology that allows your clients to have the same digital experience you do when it comes to their portfolio, instant delivery of information compiled through the software.
  • Technology that provides automated rebalancing, and tax-loss harvesting intuitive of each client’s needs; customization for the client is essential to their success.
  • Efficiency for new client segments or smaller existing clients that fall below account minimums- without compromising quality or client service. 

AdvisorPeak addresses these concerns to help ensure everything is in sync for client success-and yours. AdvisorPeak seamlessly integrates with your existing technology suite and service providers to fully support your advisory practice.  We work with all major industry custodians, portfolio accounting systems, and partner service firms, and model providers.

Contact us to set up a demo and experience what AdvisorPeak can do for your wealth management practice.