Elevating client experience is now a top priority weighing on advisor investment into practice technology.
More than 80 percent of survey respondents said client-facing automation was a critical or moderate need for their firm and were focused on four key processes: client onboarding, day-to-day client service, analysis of data through the client lifecycle, and marketing and business development outreach to tomorrow’s clients.
The research confirms that firms are actively pursuing new solutions that reflect a new approach to driving growth, notes George Tamer, AdvisorEngine’s head of sales.
“For forward-thinking RIAs, the question is not, ‘Should I retain, grow, or expand?’ The question is: ‘How do I power a growth strategy that captures all three?’”
Firms want to keep existing families, including building proactive relationships with the next generation to capture intergenerational wealth transfer, Tamer notes. But they are adding more clients like those they already serve, as well as moving into new segments of the market and adding new service offerings.
“Many RIAs encounter client experience challenges and operational difficulties when using legacy technology – that’s why more than 80 percent of survey respondents are focused on new client-facing technology that incorporates smart automation.”
Another survey finding that backs this conclusion also points to a shift in the value proposition of advisor technology.
Only 34 percent of survey respondents said streamlining back-office processes remains a high priority reason for technology investment, while just 17 percent said reducing administrative and other costs was a high priority driving advisor technology adoption.
You need efficient processes to deliver a great client experience, and many firms have a better handle on how they are operating, Tamer notes. Now the emphasis is on enhancing what the client sees and feels.
"You can tell clients, 'We're running more efficiently, we're able to serve you faster,’ and they'll say, 'That's great.' But they remember that first moment when they must onboard or panicking about the markets, and how you were in touch to guide them through that moment,” Tamer said. “Technology can help you facilitate the real human value of advice but in a way that's modern."