Maximizing ROI is the ultimate goal of every wealth manager. After all, the better the returns, the happier the client. Yet, do you really implement all the effective strategies for maximization? Can you truly say that you maximize the ROI rather than just improve it?
It all depends on the number of efforts and strategies you implement. One of the more effective ways involves investing in wealth management technology—platforms and engines that help you boost the returns on your investments. How to maximize their ROI and get the most out of your tech stack? Find it out in this article!
How to Maximize the ROI of Your Wealth Management Technology: 4 Strategies
Wealth management technology is a broad term. It can refer to simple solutions, such as Microsoft Excel spreadsheets, as well as to complex wealth management platforms, such as WealthArc. How do you maximize the returns on both sides? Here are our 4 strategies.
Calculate and Eliminate Technology Debt
Technology debt is the cost of replacing existing solutions with new ones due to the former’s ineffectiveness or inefficiencies. Generally speaking, technology debt is generated by:
- legacy solutions,
- sub-optimal solutions created hastily for a shorter time-to-market,
- lack of knowledge of technology and unintentional implementation of sub-optimal solutions.
In general, tech debt does not have to be bad. If you see a huge potential coming from a faster time to market, the profits might outweigh the debt generated. Nevertheless, the longer you use sub-optimal technologies, the larger the debt.
To maximize your wealth management technology ROI, you have to estimate your technology debt and start fighting it off. Look for legacy technologies and their impact on your productivity, choice of new software components (e.g., a limited number of integrations causing you to invest in more expensive solutions), and general costs. On average, replacing such technologies pays off in 2 years—it can reduce your operating costs significantly in the long run.
Automate Your Workflows
While wealth management technology is helpful in general, one of its biggest advantages is the fact that it digitizes processes. These processes can later be automated, ideally with the use of AI.
If you want to maximize your wealth management technology ROI, you have to invest in workflow automation. Even the more complex workflows can be automated with artificial intelligence and machine learning. This won’t only save you time, boosting productivity; it will also decrease the number of human errors to an absolute minimum, ensuring compliance and helping you build client trust.
Opt for a Complex All-in-One Platform
Data silos are the biggest challenge in any digital ecosystem, wealth management included. If your data is sourced from multiple tools, platforms, and custodian banks, you don’t have the complete information you need to make the best decisions. What is more, your data accuracy may suffer, leading you to sub-optimal investment choices due to a lack of complete information. So, if you want to improve your wealth management technology, you have to overcome this challenge.
What is the solution to this problem? An all-in-one wealth management platform. This way, you conduct all operations in one place, with a single interface that displays complete, relevant, and up-to-date data. Naturally, such a platform should also be equipped with modules for consolidating data from outside sources, such as custodian banks. But if it does, it will help you create a single source of truth for your firm.
Alternatively, you can opt for wealth management APIs. This will be especially useful if you don’t want to say farewell to your current tech stack.
Collect and Analyze Your Client Data
Finally, remember that your ROI maximization efforts need to include clients. To make the most out of your services, you need to understand the people you serve. Therefore, you should include a complex CRM system in your tech stack.
A CRM may be integrated into your wealth management platform, as it is in WealthArc, or you might implement it as a separate software component—the choice is yours. But without client data, you won’t be able to adjust your strategies to their needs and expectations and build long-term trust and loyalty.
Conclusions
Maximizing the ROI of your wealth management technology requires you to look into your tech stack holistically. But, with the right analysis, improvements, replacements, and additions, you can increase the value extracted from your technology and grow your business along with your clients’ portfolios.
Did you like this article? You may also read: How Can AI Transform the Wealth Management Industry for the Better?
.jpg)
.jpg)
.jpg)
.png)
.png)
.png)
.png)
.png)
%2520(1).png)
