Investment Geniuses

Four Signs Your Investment Management Technology Is Failing

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Q3 hedge fund letters, conference, scoops etc

Financial services technologies are “hot”: Adoption of digital tools that simplify, support and/or streamline money management has doubled just since 2015. But your advisory firm is doing okay without the latest technology…right?

If your firm is hesitant (or just slow) to launch tools designed to increase efficiency, consider that the most successful advisors use more technology – and spend more on technology – to drive growth and scale. They understand its value for creating greater efficiency and a better client experience.

Here are four signs your firm is ready to take advantage of technologies that will help improve how you do business:

  1. You spend less than half your time nurturing clients and prospects

In this case, you are among the majority of today’s financial advisors who wish they could spend more time with clients. Many advisors spend the majority of their time managing portfolios, doing administrative work, and other low-value activities. If that’s you, find a solution that frees you up to spend your time building your business. Technology can take on everything from performance reporting and recordkeeping to portfolio management, transactions and trades, aggregation, account reconciliation, and more.

  1. You’re not acquiring assets fast enough

Advisors who spend more time with clients fare better than those who don’t; they have an annual growth rate higher than that of advisors whose time is focused on investment management. They also have more clients, greater annual asset growth rates, and greater annual revenue growth. In other words, technology removes repetitive, low-value work from advisors’ desks and give them more time to spend where it makes the biggest impact – with clients. If your business isn’t growing the way you’d like it to, it could be time to bring technology into the mix.

  1. You’re as bogged down with paper as you were five years ago

Technologies that organize and store documents are making old-school systems – and the potentially costly errors that come with them – things of the past. Today’s technology makes it possible to optimize most processes within a firm, automating everything from workflows and reporting to compliance, client correspondence and statements, online transactions, account management, due diligence, trade confirmations, and more. Even the account-opening process can be completely paperless. The impact of technology in optimizing a firm is significant: automation can help firms save up to 60% on time-to-resolution of repetitive tasks, with the added benefit of accuracy and reduced costs.

Read the full article here by Anil Beniwal, Advisor Perspectives


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