The system should also be useful in prospecting, whether it’s through campaigns, videos, questionnaires or data collection, he said. A prospect who reports she or he wants to buy a boat should get a message that tells them an advisor can help them consider their tax-free financing options for the purchase. Same for those seeking assistance about when to start taking Social Security benefits, he added.
Retirement drawdown technology should also be a feature of any platform since it can extend the life of client portfolio three to five years, he said.
At a minimum, platforms should also produce tailored financial plans, provide personalized services, measure performance and update and keep plans and portfolios “fresh,” Alexander said.
With investors’ growing interest in ESG investing, platforms can add value by showing what environmental and societal assets a client has, how they’ve performed and what value they’ve added.
“At the end of the day, I think there are three main objectives for whatever next generation technology you adapt: It should increase investor literacy, improve outcomes and reduce friction like clumsy paperwork,” Alexander said.