7. Firms have to tech-enable all aspects of their business, using technology for things like compliance (programs that will raise red flags), operations, investments, finance, marketing and client engagement. But firms often don’t use the full capacity of the technology suites they use, since very often they come from a box, said Penney. Firms also have trouble integrating and customizing their technology.
8. Firms have to “enhance their digital client experience,” Penney said. Within the next two years, he said, if advisors’ services aren’t on the phone, they run the risk of losing clients to other firms.
9. Firms must have access to best-in-class solutions for all their clients needs. Open architecture has allowed more access to product as the advisory and product manufacturing are separated and technology ties it together. That means there are more opportunities in the RIA space for things that used to be available only to the very wealthy. He mentions things like syndicated loans that are now available to RIA clients.<
10. Firms need to “insource the special sauce and outsource the rest.” In other words, they must stick to what they do best and if they don’t do something well, they must assign that task to outside firms.
One campaign Dynasty put together using digital marketing, he said, involved a West Coast firm Dynasty works with. “We wrote some simple white papers, very short and easy on ISOs, stock options, for Snapchat employees. Then with LinkedIn it’s very easy to use—you can target a campaign toward employees of any company. So we just pushed it out, targeting the campaign toward [Snap Inc.] executives. The strategy was very simple. To position this group of advisors as experts in stock option cash flow analysis, diversification, etc., running a concentrated position, in this case for Snap. And then we had a very simplistic AI tool that interacts with the client.” Once the advisor sets it up, he or she doesn’t have to touch it. When the prospects respond, the tool sends them a follow-up article to help them get more educated on their stock options. And then ultimately they can, off the system, book a meeting with the advisor.