The end of the year is looming – and if you still haven’t determined where to allocate your 2023 technology budget, you aren’t alone. Advisory firms today are facing a unique and unenviable combination of inflationary pressures, market challenges and an impending recession – not to mention an increasingly crowded financial technology landscape.
Those complexities grow exponentially for advisors who serve business owner clients since business owners will feel the effects of inflation and a potential recession more acutely than the average investor.
Between the challenging economic environment, growing concerns from business owners, and the sheer volume of technology available to advisors today, decision paralysis is understandable, especially for AUM-based advisors facing tighter budgetary constraints due to the down market.
So how do you determine what’s worth your attention and fiscal resources?
As you’re searching for the solutions that will make the biggest impact on your business and your clients in the coming years, make sure your technology checks the following boxes:
Replaces Outdated On-Premise Solutions
If you or other members of your firm routinely work virtually, cloud-based tech is a must-have. Even if location isn’t a factor, a cloud-based solution offers several advantages over on-premise software (software that can only be accessed in the office), including lower costs, turnkey installation, scalable storage capabilities, greater flexibility and configuration prior to implementation - meaning you can get started right away.
Advisors looking to future-proof their businesses should narrow down their technology search to cloud-based offerings.
Drives ROI
Some technology solutions – for example, client engagement applications – might take some time to prove their value. But playing the long game with tech isn’t always a possibility.
If you’re looking to invest money in new technology to grow your business, you need to see a more immediate return on that investment, either by:
- Improving efficiencies and reducing operational costs
- Offering new services that differentiate your firm
- Upsell tech-enabled offerings to current clients (i.e. deliver results in real-time or faster turnaround)
How quickly will the technology pay for itself? If the answer is “with one new client,” or “in six weeks thanks to streamlined operations,” it’s probably worth the spend. If the answer is less clear, you might be better served allocating your budget elsewhere.
Enables You to Get Up and Running Quickly
Your clients need your guidance and attention now more than ever, which means you can’t afford to spend time struggling to implement and use the solutions that are supposed to be making your job easier.
Comprehensive onboarding, training and support is important, but time is also money and the ability to get started with confidence right away is crucial. Too often, financial technology can require deep customization work to start making a difference for a firm, creating a time and resources burden advisors simply don’t have. Ensure this is not the case by considering turnkey solutions that seamlessly fit into your firm and require little to no training on its usage.
Maintains Your Future Vision
It’s easy to get distracted by the sheer volume of new tech solutions on the market – but shiny object syndrome can be dangerous for your firm, especially when budgets are tight.
That’s why it’s so important to look inward, not outward, when making technology decisions. Instead of considering every new piece of tech as it emerges, think about what you want to achieve and how the tech should support it. What are your firm’s goals for the next year, the next five years, the next decade?
Use your long-term vision to keep your technology search on track.
Enhances Efficiency and Client Experience
Most financial technology benefits can be split into two buckets – operational or client-facing – but some solutions offer both advantages, creating more streamlined ways to bring additional value to current and prospective clients.
With both budgetary and time constraints to contend with, look for technology that checks both boxes. It will allow you to better serve current clients and make it easier to expand into new markets or open the door to provide expanded services while reducing operational burdens for you and your team.
Creates a Competitive Advantage
Just like the fintech space is becoming increasingly crowded, so is the financial advisory landscape. How will your potential tech solution enable you to stand out? What does it allow you to do for your clients and prospects – or do better and more effectively – that your competitors can’t?
When you’re deciding how to spend your budget, make sure the tech you’re vetting creates a clear and compelling advantage for your firm.
Solves Current Challenges
As inflation continues to impact businesses across industries without an end in sight heading into next year, your clients are likely to have questions and concerns that differ from what you’ve advised them on in the past.
Technology should help you address those uncertainties more effectively, by freeing up your time so you can be more available to clients, offering them new services or solutions that mitigate their concerns, or ideally both.
What you do for your clients now will be what they remember when the economy corrects, builds loyalty, retention and drives referrals.
Tech-Enabled Advice: How Top Advisors Leverage Best-in-Class Technology to Provide Better Advice
Looking for more information about how to turn technology into your competitive advantage? In our recent webinar, BizEquity’s President of Business Operations, Jason Early, joined Penny Phillips, President and Co-Founder of Journey Strategic Wealth, to discuss:
- What advisors should consider when deciding which technology to adopt
- How to leverage tech to scale services
- What to do now to attract prospects and drive growth
Tune in to watch it on demand by clicking here!
