What Advisory Firms Want from Their Technology Upgrades
Even before the COVID-19 pandemic forced a digital reckoning for companies across the globe, advisory firm spending on technology hit an all-time high — median year-over-year tech spending increased 15.8% in 2019. And as the fintech landscape grows more profitable and capable, advisors and clients both expect more bang for their bucks. Advisory firms looking to upgrade their tech stack in 2021 should look for efficiency, enhanced client experience, and tougher cybersecurity.
Integrated Systems that Scale Up Efficiency
Most firms already possess a core tech stack built of some combination of a CRM system, financial planning software, portfolio management, and other forecasting and analytical tools. But often these tools are not being used to their full potential — 54% of advisors say the lack of integration between key systems is a chief impediment to maximizing their firm’s tech capabilities. Cumbersome redundancies between systems, inconsistent digitization, and slow employee adoption of new tools can all slow down a firm that should operate at a more efficient level, based on the technology it’s already purchased.
On top of that, automation is poised to pick up a significant portion of back-office processing, with Forrester estimating that by the end of 2021, 25% of remote workers will have some sort of automated support in doing their jobs. Automating tasks between systems frees up advisors to spend more time nurturing client relationships and building their books of business.
Industry leaders know that integrating processes and operations into an overarching system requires time and investment upfront. But this investment pays off at scale. Nothing hinders growth — and profitability — like inefficiency.
A Smoother Experience for Tech-Savvy Clients
As customer experience (CX) evolves, clients expect smoother and more delightful interactions. And for high net worth individuals, it’s resounding: 74% of HNW clients say they could be lured away by the sleek, personalized CX offered by tech giants. Customized dashboards, bespoke risk profiles, and AI-driven analytics tools are among the top-shelf features many clients expect, especially at higher wealth bands, and they’re willing to prioritize finding them.
This won’t surprise most advisors. Though 86% of firms recognize the colossal importance of using their digital offerings to improve client service, nearly half report dissatisfaction with their current technology.
Investing in cutting-edge CX to attract and retain clients, especially HNW investors, demonstrates that firms haven’t forgotten the heart of advisory: positive client interactions.
Robust Cybersecurity Protection
According to cybersecurity firm CrowdStrike, cybercrime skyrocketed over 2019 and 2020, rising a combined 400%. And advisory firms, with their wealth of sensitive information from affluent individuals, make tempting targets.
While 93% of advisory firms have documented plans to foil cyberattacks, they might not integrate existing tech stack features like encryption across devices or detecting unauthorized network activity. Strategic tech upgrades can ensure that advisor security protocols are up to par and client information stays secure.
Top-performing financial software should provide a suite of up-to-date security features, including algorithm-driven encryption, extensive deep packet inspection, and detailed access analysis to ward off potential security threats. Without it, the risks of a firm-destroying cyberattack are too massive to bear.
With Docupace’s best-in-class software platform, you can streamline processes, enhance the client experience, and leverage cloud-based security solutions. Upgrade your firm’s existing tech stack without rebuilding it from zero and get back more time for growing your business.