So it is incumbent on RIA decision-makers to stay focused on what their firms need and not be swayed by technology vendors’ shiny objects. It is easy to get sidetracked by the offerings that may be integral to one firm’s business but add no value to another.
Let’s say that when your phone rings, you want all of the client information tied to the inbound number to be brought up on your computer screen. The CRM says this is possible. The telephone company says it cannot be done or that it requires a significant investment. You need to decide: Will this feature enhance productivity or client service? Or is it just “nice to have but not worth the investment”? The answer will differ from firm to firm.
Another way to stay the course is to ask for referrals, and not rely solely on technology vendor demos. Talking to others may help you avoid minefields or misguided purchases. Like employee background checks, technology referrals can offer an advisor a more informed picture of what they are getting—good and bad.
Advisors who think through the ways they want technology to help them engage clients are, again, less likely to be distracted by the bells and whistles. Technology investments can be very expensive, non-refundable mistakes to unwind, live with or correct. With so many risks to consider, it is understandable that some RIA leaders may believe the best course of action is to do nothing—“First, do no harm.”
But the status quo in technology can also be dangerous. The shift to the all-cloud environment from on-premises technology is forcing RIAs to consider changes to the way they work. Change may be hard, but it is necessary to stay competitive.
This may mean that the way a firm works today may no longer exist in the future. But that doesn’t mean a comparable or even better way exists. By keeping the firm’s core value proposition at the center of their search, RIAs will have an easier time evaluating the most appropriate technology for the future of their firms.
Wes Stillman is the CEO of RightSize Solutions, which provides cloud-based technology and cybersecurity solutions to the wealth management industry. Wes can be reached at [email protected].