Overcoming siloed software solutions in wealth management

We often talk about how wealth management firms have spent years – maybe even decades – content with the status quo. Digital growth was slow and methodical, the emphasis always on face-to-face relationships with high-net-worth clients – a high-touch business relying on personal service and interaction.

Recent history has taught them differently and that conversation was on full display at this year’s T3 Advisor Conference. Today’s high-net-worth individuals – investors with liquid assets greater than $1 million – use three or more digital devices daily, and most clients expect their wealth managers to offer the same convenience and personal experience of online and mobile banking.

And that’s not even getting into HNWIs under 45 years old. In the next few years, some 80 million Millennials will come of age financially, making up what is likely the largest, wealthiest generation in U.S. history.

The issue many wealth management firms are encountering, as they try to adapt to this new digital world, is that their past has caught up to them. Many firms are discovering that their tech stack is filled with siloed business software – standalone applications, homegrown solutions and a variety of vendor products – none of which talk to one another.

This creates a wobbly software architecture that makes it difficult for a company to scale efficiently – extremely important in our burgeoning platform economy.

The challenges a siloed system presents

Growth often leads to siloed systems, as departments adopt solutions to take on specific challenges. When those systems can’t talk to one another and share information, new challenges arise. Those challenges can often stifle further growth.

Or, at the very least, slow it down.

Siloed systems also lead to lower employee productivity, as wealth managers take time to search multiple systems for client information. They don’t have a clear view of the client’s wants and have a harder time anticipating client needs. At the pace of both technology and customer expectation today, some clients may search out a new firm who can provide the speed and service they expect.

And that says nothing about the cost to maintain and upgrade disparate systems.

Integration becomes vital to overcoming challenges

To overcome those challenges, wealth management firms are building platform ecosystems by integrating software solutions and making information easily and quickly accessible, without the need to leave core interfaces. When this happens, wealth managers suddenly have immediate access to client information in real-time, regardless of where the information originated.

They have a complete view of the customer, which allows them to forecast client needs and answer client questions quickly.

Integrating with line-of-business solutions like Salesforce and Redtail to a robust content services platform also allows business processes to run more efficiently, empowering users to retrieve the information they need, when they need it, while remaining in familiar applications.  The right solution should also seamlessly integrate with technology investments across the firm – including accounting software and human resource applications – to give users a single place to find instantly what they need.

Provide a connection

In the end, it’s all about the connection. Not only between your systems, but also between your managers and clients.

Want to learn more? Download Overcoming the challenges of digital transformation in Wealth Management.

Bryan Boynar has expertise in the financial services and insurance fields and has been a contributor to the Hyland blog.
Bryan Boynar

Bryan Boynar

Bryan Boynar has expertise in the financial services and insurance fields and has been a contributor to the Hyland blog.

... read more about: Bryan Boynar