Advisors Say Technology, People Provide The Biggest ROI For Their Firms

Financial advisors are always looking for investment ideas for their clients, but what are the best investments they can make in themselves and their practices? Advisors say software and technology provide the biggest return on investment, but hiring the right people still plays a big role.

“By far the biggest benefit for us has been technology. That's probably the biggest driver of profitability for us over the past two years, with a really good return on investment,” says Matt Etter, president of Signet Financial Management in Parsippany, N.J., which has offices up and down the East Coast. “A long time ago we made the decision to get everything into the cloud. Now all of our software is accessible anywhere by everybody in the firm. That not only enables our employees to grab a client file from anywhere, but it also helps us deliver in face-to-face interactions with our clients wherever they are.”

In addition, Signet has started to use analytics software to track the communications and information it sends out to clients. “We track where our clients land when they come back to our website so we can formulate a plan specifically for that client,” Etter says. “We can create leads from that as well.”

Russ Norwood, founding partner and chief executive officer at Venturi Wealth Management in Austin, Texas, says it recently bought a high-quality videoconferencing system that enables employees in the company’s two offices to more easily hold internal meetings as well as with clients. Indeed, he credits that system for enabling his firm to win a large piece of business from a client, enough to pay for the technology.

“Demonstrating that kind of capability to prospective clients lets them know that you are a serious business,” he says. “It can be the engine for winning relationships.”

The firm has also made an investment in professional development, specifically earning the Certified Private Wealth Advisor designation. “It's kind of the new standard in the industry,” Norwood says. “It's an expensive investment, but it sets you apart when you're competing against large private banks. It really differentiates us in the marketplace and gives us a competitive edge.”

Joseph Eschleman, president of Towerpoint Wealth LLC in Sacramento, Calif., credits scheduling software that it integrated it into its website for driving efficiency and client satisfaction.

“It saves us a ton of time, and grief, in avoiding the typical back-and-forth that can often occur with a client trying to book a financial review meeting,” he says. “Now, we can simply email a client the URL, allowing them to see our calendars online, review what times are available, and painlessly complete the process of booking a meeting at their leisure.”

Trevor Chuna, vice president of wealth planning and operations at Sequoia Financial Group in Akron, Ohio, is looking to advances in technology and artificial intelligence to help generate revenue. For example, the firm recently invested in a learning management system.