Why Do Financial Software Suppliers Integrate With External Solutions?

Integrations benefit everyone. They allow general CRM suppliers to focus on their core strengths. They give niche providers access to global markets. And they give customers the power of choice.

First things first

These days almost all financial planners make use of Customer Relationship Management software to manage their practices. In the case of larger FSPs this CRM is often provided free-of-charge while smaller firms / independent advisors typically pay a monthly fee to access a third-party CRM solution.

Each of these CRM solutions has its strengths and weaknesses, and it’s unlikely that you’ll find one that does everything you want it to do. This is where integrations come in.

When choosing a CRM we’d advise focusing on the core capabilities of the software, as opposed to the bells and whistles. As the name suggests, the CRM you choose should make managing your customer relationships easier and more efficient. It should enable you to keep track of clients’ personal and investment information and, ideally, it should offer a place to store any relevant documentation. Any CRM worth its salt will have built-in retirement calculators, FNAs and the like. And it will make ticking the many compliance, cybersecurity and POPIA boxes easier.

Perhaps most importantly it should be designed using open systems architecture that allows you to integrate with third-party providers from around the world.

Best of breed

The rise of cloud-based solutions and open systems architecture has made the world a smaller and more interconnected place. Instead of trying to be everything to everyone, software solutions now have the liberty to focus on doing what they do best – and to outsource the rest to niche providers through what are known as API integrations.

When it comes to third-party integrations, the possibilities are literally endless. Some of the most popular external solutions include:

  • Digital signature software
  • Risk profiling tools
  • Compliance software
  • Wealth and LISP data plug-ins
  • Anti-money laundering software
  • Video conferencing software
  • Email marketing solutions

What’s in it for the CRM providers?

We all know the perils of being a jack of all trades and a master of none. Being able to integrate with external solutions from all around the world allows CRM providers to focus on their core strengths – and to leave the rest to experts. In the same way that you wouldn’t ask a doctor to extract your tooth, you shouldn’t expect your CRM to know everything there is to know about risk profiling or compliance. Integrations are a great way for CRM providers to add value to their clients.

Sometimes it’s possible to integrate with providers from anywhere in the world, but on other occasions it makes more sense to integrate with local suppliers. FinDotNews, for example, is tailored for the South African market and contains articles that are relevant to our tax and economic landscape. A marketing solution from the US or the UK wouldn’t be much use to a South African financial advisor.

What’s in it for the external suppliers?

The benefits for third-party suppliers are obvious. The rise of open systems architecture means the whole world is a potential customer. And this means that it’s OK to be a super specialist. If preventing money laundering is your thing, you can focus on this and this only – safe in the knowledge that your solution can be integrated with financial software providers from all around the world.

What’s in it for customers?

Customers love integrations because they can get exactly the solutions they need – and they can get them all under one roof. Integrations have levelled the playing fields like never before. In the past only massive firms with budgets to match could afford bespoke software solutions. But now you can make your CRM exactly what you want it to be by simply cherry picking a few integrations. In many cases CRMs will even be able to negotiate a discounted rate on some of their most popular integrations, so it ends up being even more affordable.

Experience it for yourself

Financial advisors:

If you haven’t already done so, we strongly advise making your CRM your own by adding some integrations to your core package. Most CRMs have already implemented a few integrations to their system but, in our experience, they are open to adding new ones if there’s sufficient customer demand. CRMs might not want to embark on the process if only one client is asking.

Software providers:

If you’re looking to add an automated marketing solution to your offering, look no further than FinDotNews. Our API allows us to integrate with all modern CRMs quickly and easily and we’ve got lots of experience working with software providers to ensure that we surpass customer expectations.

Related: How Good Do You Think You Are at Investing?