What building client-facing tech for 150 RIAs taught me

RIA leaders who have done things the same way for their whole careers often don't want to change — especially if they are nearing retirement. 

But as the great wealth transfer continues to tip the scales from baby boomers to heirs, most advisory firms will need to prioritize client-facing technology that attracts, fosters and retains strong relationships with younger generations — and I wouldn't recommend waiting until most dollars make their way to Gen X, millennials and Gen Z to get started. 

As a multicustodial hybrid RIA that partners with nearly 150 independent advisors, one of our jobs is to select and build tools that make positive changes in their businesses, nurture their entrepreneurial spirit and appeal to clients across generations. Since the human connection is the core value proposition of any RIA, client-facing tools should increase one-on-one interactions with clients while improving advisor efficiency. With that as our goal, we embarked on building a best-in-class platform to support diverse client needs across generations, socioeconomic backgrounds and advisor business models.

Much like the ascent of a high summit, selecting and integrating wealthtech into your firm while staying compliant is a tricky journey, one that takes time, strategy and preparation. I recognize this endeavor will inevitably involve some trial and error, but it doesn't have to be a guessing game. Here are some lessons we learned along the way. Hopefully, they will help other firms navigate this phase of their growth with more confidence. 

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Train before you climb

As a home office, we've learned that failing to train advisors on new tech before rollout leads to poor adoption. On the other hand, asking them to invest too much time in the effort can be counterproductive. It's the firm's responsibility to bridge this gap, an effort that requires constant and open communication. We have an open line of communication with advisors through our advisory board meetings in which advisors are free to share their concerns, and we are meticulous about folding those into our training plan. 

For example, we built in-depth, tool-specific training tracks after one board member felt that our training approach was too broad. He recommended that we develop a more targeted curriculum for each major piece of technology. Our improved sessions led to faster adoption and greater confidence among advisors.

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Too much equipment can slow you down

One advantage RIAs have over larger firms is the ability to adapt and change course with tech more efficiently than the cruise ship-size legacy organizations with decades invested in proprietary technology. 

Because we aimed for flexibility, we opted for a decentralized tech stack that offers advisors and clients solutions to various needs — it also improves productivity and simplifies processes. The key is to be intentional in selecting the tech tools that will allow advisors to be more nimble. Yet too many tools can have the opposite effect, making advisors lose valuable time logging into dozens of platforms and overwhelming their clients with unnecessary technology. 

A core portal, where all data is consolidated within one integrated system, makes it as easy as possible for advisors and clients to manage multiple tools. 

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Don't ignore the regulatory weather

Much like ignoring changes in the weather before a climb, failing to monitor and adapt to regulatory updates impacting technology is a risky proposition — one that can result in unwanted scrutiny from regulatory watchdogs and dissatisfied clients. 

That is why before any new tech tool is approved it undergoes a detailed review process from our compliance team that includes a cybersecurity assessment and a compliance check for potential regulatory implications. Yes, firms want to create an experience clients love, but that cannot come at the expense of regulatory compliance. 

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Reaching the top is just the beginning

When firms complete their tech adoption plan, the journey is far from over. Any type of tech, whether it is client-facing or internal, requires ongoing processes that take into consideration new client needs and requests, such as modern communication vehicles, like texting or social media. 

There is no simple fix for all advisor pain points related to the adoption of client-facing tech, especially involving large lifts to onboard clients with complex lives and goals. Firms must weigh utilization and return on investment when they are pouring resources into tools that will provide a better client experience while solving for issues like off-channel communications.