The future of financial advisers is bright: The Bureau of Labor Statistics expects demand for advisers to grow at a rapid clip as savvier clients search for the best approaches to money management. Of course, becoming a financial adviser involves a significant investment in yourself through education, licensing, and building relationships. Newly minted advisers need to quickly understand the role technology investment can play in their practices.
This investment also encompasses all of the tools needed to provide superior wealth management services to clients, including best-in-class technology solutions. Not only do financial management software solutions help to streamline processes within an organization, but they also improve the financial adviser’s ability to deliver timely information while supporting the client-adviser relationship. (Not surprisingly, one survey showed that the advisers who strongly embraced technology in their businesses experienced the highest annual incomes.)
In addition, the right wealth management software effectively allows advisers to focus on managing other critical functions, such as building stronger relationships with existing clients while following up on opportunities to expand their client base. However, not all wealth management software solutions are right for every adviser. Evaluating software solutions involves a clear understanding of your professional goals and the current software infrastructure at your business to ensure that the right wealth management software can be successfully integrated into your practice.
Software Enhances Financial Services
The beginning of your career as a financial adviser is full of promise – and challenges, such as initial investment costs for the right licenses, a home office, personal expenses and marketing. However, it would be a mistake to ignore the initial and ongoing costs and benefits of financial technology for your business. Wealth management software solutions are quickly becoming the norm for most financial advisers since they support the entire client life cycle. They allow for the effective management of everything related to the data management of a financial services business, such as new account acquisitions, portfolio construction and maintenance and the automation of reports and marketing.
Technology is Essential to Business Success
Financial advisers need to incorporate wealth management software to successfully serve their clients; high net worth clients are particularly sensitive to the utilization of cutting-edge technology to support their financial goals. Advances in technology have boosted the returns on some investments, allowing financial advisers to help clients to improve their financial position through data-driven advice. Moreover, passing wealth down from one generation to the next can be a challenge, as regulations evolve and legislation both creates and destroys wealth-building strategies. Software solutions not only help advisers stay on top of regulatory compliance, but these solutions can also help them to visualize creative approaches to wealth management. Finally, more financial advisers are engaging with digital natives, clients who are naturally technologically savvy because they have grown up with connected devices.
Software Transforms Your Business
Wealth management software can move businesses from using a traditional, old school approach to investment to a cutting-edge, agile methodology that incorporates all of the most relevant data to support client success. Software provides a solid, data-driven picture of a client’s current financial situation. It also creates a smoother, more efficient process for engaging with clients: Instead of sifting through paperwork, financial advisers can quickly pull up a client’s file and portfolio, making knowledge transfers faster. The best financial software solutions also result in a reduction in paperwork and decrease in redundancies.
The Human Touch
While wealth management software solutions are transformative, they are not replacements for solid investment advice from a human financial adviser. Software can harvest and aggregate data to provide a picture of a client’s current financial situation and highlight areas for potential growth. However, the financial adviser is the pivotal part of this system because a whole picture of a client’s life can never be entirely reduced to numbers. Individual preferences, unique family situations and current events all affect the kind of advice provided. In addition, most clients still want to interact with another person when it comes to managing some of the most important decisions in their lives. The right software solution will allow you to spend more time communicating with your clients and less time with tasks such as inputting data, creating reports and juggling software issues.
A Bright Start
Providing wealth management services to individuals and families is an extremely rewarding career. Just like any new venture, the most important part of the journey is to prepare for what lies ahead. New advisers must invest in their ability to provide the best advice possible to clients while creating a leaner, more efficient workplace. Technology can support a stronger practice while freeing you up to handle more critical, high-level tasks that improve your clients’ portfolios and enhance your income. Advisers who embrace technology are preparing themselves and those they serve for whatever financial challenges lie ahead.