As the world changes rapidly, digital transformation becomes increasingly crucial.
But too often, RIAs think digital transformation is only for large firms with seemingly endless resources. In today’s world, digital transformation is no longer just nice to have — it’s a requirement for firms of all sizes.
The need to evolve with new technology and processes doesn’t discriminate based on a firm’s size. In fact, digital transformation is perhaps even more important and more impactful in smaller firms where every resource matters and every client interaction and new opportunity is vital to success. Digital transformation is your passport to efficiency and strategy to maximize your limited resources so you can build a firm that not only survives but paves the way for future growth.
Here are three core advantages of digital transformation for small RIA firms:
Personalized and Convenient Client Experience
Digital transformation isn’t just about delivering a flashy interaction. It’s about getting to the core of the client relationship to provide more convenient service, increased personalization, and a seamless all-around experience.
That experience starts within the firm, as automated processes and a digitized records system free up limited resources so RIAs and employees have more time to interact with clients and offer strategic advice.
Digital transformation also dramatically improves how clients interact with their advisors. When a firm offers stronger digital solutions, it transparently connects clients with their money. Clients who can access their financial records digitally can also track their progress and financial goals through an app or website. That convenience is empowering and helps clients feel more confident in their investment decisions.
Clients with positive experiences are more likely to refer the firm to family and friends, which can be a huge catalyst for growth.
Increase Revenue and Growth Opportunities
No matter the size, digital transformation unlocks your firm’s growth potential and has been linked to significant increases in revenue.
Digital transformation also creates a solid competitive advantage. If given a choice between a firm that uses manual systems and one that provides digitized and automated systems, clients prefer the digital option.
But the benefits go beyond just adding clients. Digital transformation can also significantly increase recruitment opportunities and help draw top talent to your firm. New RIAs want to work for firms with streamlined systems and leading digital tools. Your firm’s digital tools can be a robust recruitment tool in a challenging talent market.
Automated Compliance and Reporting
Instead of manually managing client information and documents, digital transformation strengthens risk mitigation efforts and streamlines compliance.
Regulatory requirements are continually shifting. To fulfill your fiduciary responsibilities, you must stay in compliance and file the proper disclosures. Doing so manually can be draining. And without the time or resources to hire a full-time compliance officer, you are responsible to track compliance while also serving clients and growing the firm.
Digital transformation streamlines compliance and automates reporting. Leveraging digital tools allows your firm to easily track regulatory changes, maintain and organize the appropriate documentation and organize all forms and paperwork for the auditor.
A scalable solution means your firm can easily stay in compliance, even as you grow.
Digital Transformation is Doable
Digital transformation is crucial for all RIA firms, especially smaller ones looking to make the most of their limited resources. Embarking on a digital transformation doesn’t have to be daunting. Small, strategic steps can move your firm forward and lead you to a lasting digital transformation. But to have a meaningful impact, it has to be intentional.
As an RIA, you are obligated to act as a fiduciary in the best interest of your clients. But are you running every aspect of your business as a fiduciary? Outdated, manual systems that expose your clients to risks from security breaches and compliance issues don’t serve their best interest.
To succeed and grow, you must look at the totality of your business, including business operations and not just investments, through a fiduciary lens.
As technology evolves, firms need to continually adjust their digital efforts. Understanding the benefits of digital transformation and the urgency to evolve and adapt is crucial to success. Even small steps can lead to significant rewards.
Want to learn more about digital transformation for small RIA firms? Contact Docupace to get started.
Ryan George is the Chief Marketing Officer at Docupace. He is responsible for the company’s brand awareness, early-stage sales pipeline, content strategies, customer and industry insights, internal and external communications, design, and events. George actively engages in leadership roles in both the financial services and marketing communications communities. He a member of the Forbes Communications Council, an invitation-only, fee-based organization of senior-level communications and public relations executives, the CMO Council and the CMO Club.
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