Choosing Software for Your Wealth Management Practice

Aug 29, 2022 | Blog Posts

Software has the potential to be a growth multiplier for financial advisors. But that’s only if you choose a solution that complements your needs and workflows.

Far too often, financial planners and wealth managers struggle to choose the right technology for their precise business goals. In these situations, tech creates inefficiencies and frustration, rather than simplifying operations.

So how can you choose software that augments your firm’s workflows and growth plans? Here are some recommendations to help you make your best judgment calls.

Strategic Software Goals


Improve client interactions

According to a 2022 report from Insider Intelligence and eMarketer, 77% of US- and Canada-based financial advisors reported losing business because they didn’t have the appropriate tools to interact with clients as the pandemic reduced in-person meetings. This trend is a wakeup call for financial planners that are not ready for the digital economy. 

Financial planners will benefit from improving responsiveness to clients. The idea is to maintain regular communication and ensure transparent access to portfolio performance. The right software will help ensure that clients and financial advisors are on the same page with respect to important information. This alignment in perspective will ultimately reduce hiccups and improve trust.

Look for a wealth management solution that has:

  • easy document sharing 
  • reporting that’s digestible for clients
  • an investor app that allows clients 24/7 access to their financials

Identify efficiency bottlenecks

Time is your firm’s most valuable asset. Depending on your operational sophistication, you might even be able to measure the financial impact of the tasks necessary to run your business. The way that your team spends their time will ultimately have a cost.

When choosing software for your firm, streamlining efficiencies is a top priority. By cutting down unnecessary operational effort, you can improve your focus on delivering sound advice and delivering exceptional results.

Look for a wealth management solution that:

  • simplifies proposal and financial plan generation 
  • allows you to easily configure and store investment models for quick access
  • connects all client accounts in one central place to streamline monitoring and rebalancing

Optimize your technology stack, overall

When you choose technology for your business, everything needs to work together. For instance, your customer relationship management (CRM) platform will likely need to feed data into your marketing systems. Meanwhile, your financial planning software should integrate with your billing and accounting systems. 

When all of your systems are working well together, your technology stack can operate at peak performance. That’s why it’s important to select software that fits into your bigger picture operational vision. 

Look for a wealth management solution that: 

  • integrates with your other key platforms like CRM (Redtail, Salesforce, WealthBox), planning software (MoneyGuide, RightCapital), and risk software (Riskalyze, Stratifi, Totum)
  • integrates with custodial platforms (Schwab, FIrst Clearing, Fidelity, etc)
  • provides access to client held away accounts to give you a complete picture of the client’s financials

Additional Considerations

You can expect your software vendor to become a partner to your business. 

When you run into hiccups, will there be a support team to provide assistance? As your firm expands, how seamlessly can your software partner continue to power your growth? What is the product development roadmap for the software that you’re considering implementing?

It’s important to get answers to these questions before entering into any new contracts. After all, the experience needs to be seamless.

Learn more about CircleBlack

CircleBlack is an all in one management platform for the wealth management industry. You can think of it as an operational dashboard to better connect financial advisors and their clients around a shared perspective. The outcome is better collaboration.

To learn how our software can help you build, manage, and grow your wealth management practice, get in touch.

Disclosures
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice.

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