Should You Include a Digital Investment Solution in Your Practice?

Posted by James Capps, Vice President, TCA Technology on March 5, 2018

Now, more than ever, advisors have an increasingly sophisticated array of digital solutions at their disposal, which can help streamline investment management, improve risk profiling, and expedite client onboarding—especially for smaller accounts. With model-based portfolio management tools and advanced analytics, today’s technology can also help scale your practice and increase the potential for superior investment outcomes.

Automating routine tasks

In a recent blog, the director of financial services strategy and marketing at Adobe pointed out the obvious for most financial advisors: “There is only so much time in the day,” he said. As a result, “most financial advisors are only engaging with a portion of their book of business and prioritizing the customers of highest value.”

Given the importance of face-to-face interactions, tools that enable you to automate routine administrative tasks are critical. Today’s digital platforms can handle a broad array of routine functions, freeing you to engage with clients and offer a high level of personalized service.

Moving beyond basic automation

But today’s digital investment tools are capable of so much more than basic automation. More sophisticated RIA platforms can help you with the intricacies of portfolio management, including:

  • Portfolio design, construction and backtesting
  • Rebalancing and trading
  • Account aggregation
  • Performance reporting
  • Financial planning
  • Compliance reporting

The most advanced digital platforms also have all-in-one functionality that incorporates calendar integration, mobile support, email campaign automation, and the ability to host live chats.

But not all RIA platforms are made the same. Limited technology may boost productivity but can still fall short of meeting the needs of advisors who wish to provide sophisticated portfolio management and financial planning services.

Replacing legacy systems and thinking

One of the biggest obstacles to adopting new technology is getting past the “we’ve always done it this way” mindset. Fortunately, today’s RIA technology doesn’t require an advanced degree in robotics. On the contrary, integrated technology tools can actually help you deliver a better client experience by more precisely targeting prospects, driving better investment decisions, and allowing you to spend more time connecting with valued clients.

Why wait?

If you haven’t considered incorporating digital investment tools into your practice, now may be the time to consider it. Technology has come a long way. If used the right way, today’s RIA platforms can help take your practice to the next level.

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