It can be very disheartening though for firms that feel like they are way behind, but I encourage them to throw their energy into just heading in the right direction rather than do nothing. Pick an area of the business – such as client/prospect engagement. Ask yourselves: Are there any small steps and/or technology solutions that can positively impact this area? It’s an ever-changing continuum and firms should view what they deliver relative to the digital experience and solutions available.
Hortz: Can you share a few client examples that illustrate how this shift is materializing and the benefits it may provide?
George: Firms that need a faster, more secure back-office would be best served with this rise of the “most-in-one” alternative option.
The first example I can think of is RBC Wealth Management, a custodian that has transformed itself over the past couple of years – specifically in terms of digital transformation and optimization. For a number of reasons, RBC had found themselves in conflict with advisors growing expectations about how technology should reduce inconveniences and improve their everyday interactions with the world. They were heavily paper-based and running on some dated systems. They made the critical decision to go from laggard to leader and brought in companies like Deloitte, Salesforce, Addepar, and Docupace to participate in this transformation. The result? Collectively, RBC was able to take 26 different systems and consolidate them into a single click.
Another firm worth pointing out is Cetera because they have taken a different approach to land at a similar result. As you know, Cetera has multiple broker/dealer groups that specialize in different areas of the market. What they have done is to look at all the dozens and dozens of processes across these groups, and sought out ways to eliminate, reduce or reinvent cumbersome/duplicative processes. It’s an example of how with the right people and the right mindset, you can transform a business even without having to transform your systems.
Hortz: Any recommendations or advice you can provide to financial firms on how they can design their digital efforts towards the biggest strategic outcomes they should be focusing on?
George: The best thing many firms can do to put their best foot forward is start asking questions: Is this technology a critical driver of my firm’s success? Does this technology have an internal champion or SME at my firm? Is this technology connected to other systems/platforms of the firm? Does the technology improve workflow, create efficiencies, or provide new more competitive ways to operate and engage advisors and their clients? Answering these questions (or not having an answer) can tell you a lot about your current state.
Operationally, partnering with an experienced “most-in-one” tech provider can bring in the majority of what is needed to run an efficient back-office and the knowledge of where to get new needed capabilities. Firms can rely on these providers to ensure the integration of tools and systems, bolting on additional solutions, when needed. This takes a large burden off the shoulders of CTOs and COOs.
I also recommend an annual roundtable discussion on firm technology to assess how the firm’s tech stack inhibits or enables different roles within the firm. An advisor may presume a technology is irrelevant but to the office manager or wealth management assistant, it’s critical. It is very important to understand those different use cases across all firm personas. These discussions will also help clarify what the independent digital landscape looks like today and build an understanding of where the industry is going.
The Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial advisors and financial services firms determined to lead their businesses in an operating environment of accelerating business and cultural change. We position our members with the necessary ongoing innovation resources and best practices to drive and facilitate their next-generation growth, differentiation and unique community engagement strategies. The institute was launched with the support and foresight of our founding sponsors – Ultimus Fund Solutions, NASDAQ, FLX Networks, Advisorpedia, Pershing, Fidelity, Voya Financial and Charter Financial Publishing (publisher of Financial Advisor and Private Wealth magazines).