Your Tech Ecosystem
Choosing the right technology is critical to improving your firm’s productivity and efficiency, growing your business, and boosting your profitability. The challenge for many independent financial advisors is figuring out which digital tools belong in their tech ecosystem, making sure they are properly integrated, and learning how to use them most effectively.
Unfortunately, advisors often fail to get the most benefit out of their investment in a tech ecosystem. This can be due to several factors, such as different components not integrating well and new components not working seamlessly with the advisor’s current platform. This can lead to frustration and buyer’s remorse as advisors end up having to perform manual workarounds that decrease efficiency and productivity.
You can avoid this dilemma by reviewing and understanding your current tech ecosystem to determine where there’s room for improvement and how manual tasks can be automated. Based on your findings, you can build an optimized technology ecosystem that’s designed to meet the specific needs of your firm and your clients.
With such an ecosystem in place, your firm will be best positioned to meet the needs of an ever-evolving financial services marketplace while also improving internal efficiency and profitability. Choosing the right digital tools for your tech ecosystem can also give you an advantage over other advisors in today’s increasingly competitive environment.
Why and how advisors use technology
In a research report by InvestmentNews titled “Digital DNA 2.0,” independent financial advisors cited improved workflows and creating efficiencies as their top consideration when building their tech ecosystem. Improved client outcomes and integration with other firm technology were also listed as top advisor considerations.1
The report identifies “tech accelerators” as advisory firms that are at the forefront of technology investments for their firm and the most likely to be early adopters of new technology. These tech accelerators are investing more money in technology and are growing faster than other advisors, according to the report.
Tech accelerators pay attention to ways they can improve the client experience through an enhanced technology platform. They leverage more client-facing technology (77%) than other advisors (56%). About a third of tech accelerators are using fully digital account opening tools (36%) and client video-chat software (39%) as well.2
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Related: How to Position Your Firm for the Great Wealth Transfer