9. Find the right technology platform. Technology can provide important tools for managing your RIA practice, helping to improve efficiency and consistency for everything from back-office processing and record keeping to client communications, marketing and compliance. Technology also can help automate other aspects of your business, such as customizing investment strategies to each client, rebalancing portfolios for optimal asset allocation, assessing clients’ risk profiles and providing documentation to explain these recommendations and procedures. The more you can leverage technology to handle the more rote aspects of your business, the more time you’ll have to meet with clients and prospects.
There has been a proliferation in new technology alternatives to support the RIA industry, and sorting through your options can be complex and time consuming. For this reason, you’ll want to formulate a clear vision of what you want your technology platform to do, and then start well in advance to research your various options. Once you narrow your choices to a few qualified vendors, be sure to ask about their degree of technical support, both through the integration period and afterward. You also may want to ask about a free pilot program, so you can see first-hand if this new technology is a good fit for your business.
While the transition to the RIA channel may be at times be stressful, it’s not a journey you have to make alone. It can make all the difference to have a partner who can advise you on key business decisions, help you formulate a marketing strategy and technology strategy, and ensure you’re meeting your legal and compliance requirements. The key is to pick a partner whose interests are aligned with your goals. You need a partner who knows you and understands your business. And you need a partner who is flexible and easily adapts to your specific needs.
Al Leary is senior vice president of Trust Company of America.