Overabundance is one of the biggest problems of our era. With so many options available, making a choice itself becomes extremely difficult, not to mention making the right one. In this article, we want to look at one particular area impacted by this—selecting tech tools for wealth management. What features and aspects do you need to look for to pick the best software out of numerous solutions offered by fintech companies? Find it out in this article!
The Key Features You Need in Tech Tools for Wealth Management
There are two important things you need to research before selecting your wealth management software: the features of the solution and the provider. Let’s start with the former.
End-to-End Modules
First of all, you need to look for a complex, end-to-end solution. You don’t want to switch between multiple platforms, as it is inefficient and requires excellent data integration (which is costly if you conduct it on your own). Instead, you should look for software that has numerous different modules enabling you to operate fully in it.
For example, our software for external wealth managers, private banks, and family offices comes with the following modules and features:
- Portfolio Management,
- Order Management,
- Client Management,
- Portfolio Data Aggregation and Reconciliation,
- Portfolio Analytics,
- Private Equity,
- Detailed, Customisable Reporting.
Thanks to this, you can run all your operations with our software without needing to switch between different components. This can also help you avoid data silos and embrace data to the fullest—it’s crucial that your tech tools for wealth management come with complex, end-to-end features.
AI-Powered Analytics
Analytics are usually a part of the more complex, end-to-end tools. Yet, not every module will let you unleash the power of data. For that, it needs to be integrated with artificial intelligence and machine learning models. Why is it so?
With machine learning, you can utilize historical data to extract current and predictive insights out of the real-time information you receive. This can help you in multiple ways, including:
- understanding customer behaviors better and faster, and reacting to them proactively,
- predicting market changes, hence making better investment decisions,
- personalizing customer experience and tailoring your services to the current market needs.
AI can spot patterns that humans cannot. Therefore, only the use of it will enable you to fully draw from your data. An analytics module that isn’t powered by artificial intelligence will simply be outperformed by its ‘smart’ counterparts.
Highest Data Quality
Even the best analytics module will fail without accurate, cleansed data—errors will cause mistakes in the insights extracted from it. Therefore, your solution should not just let you integrate and consolidate information from different sources and in different formats; it needs to do so effectively, with minimal error rates.
To do this, you often need a bit of human touch; otherwise, you won’t achieve high data accuracy in wealth management. This is why at WealthArc, we have a dedicated Data Team that verifies the information flow during the automated reconciliation process, ensuring that the errors are spotted and corrected. You, on the other hand, don’t have to perform any manual work—you know you work on accurate information.
Automation
You want your work to be as efficient as possible. This means cutting down the time you spend on monotonous, little value-adding tasks. How do you do this? With automation.
You should only consider those tech tools for wealth management, which come with highly-developed automation. One that is accurate, mistake-resistant (for instance, it includes compliance checks), and quick. After all, you want to implement software that will help you reduce the operating costs, gain a better insight into your clients, and improve the quality of your services—having more time to spend on more complex tasks due to automation taking over the less sophisticated ones will help you achieve all three of these goals.
Data Security
Cybersecurity in wealth management is paramount. Not only is it a requirement (derived both from financial regulations and data protection acts, like GDPR), but it is also a cornerstone for the trust between you and your clients. Therefore, you need wealth management tech tools that you can rely on.
This includes several different protective measures. For instance:
- Since such solutions typically work on APIs, you want them to include strong encryption protocols along with token authentication.
- The data centers where the information is stored are also crucial—they need to implement extensive security measures. In practice, this means working with reliable providers.
- Sensitive data should be stored separately from financial data to anonymize the clients.
Naturally, the above are just a few examples of the best practices regarding data security—there is much more to it, so it’s good to consult a cybersecurity expert before making a choice.
Evaluating the Provider of Your Tech Tools for Wealth Management
While the features of tech tools for wealth management are important, it’s not the only thing you should focus on. To make a fully informed, right decision, you should also research the provider. Here, you should focus mainly on two aspects.
Customer Service
The better the customer service, the easier it will be for you to use the software. Access to support is crucial, as even a small halt might significantly decrease your customer experience.
Industry Trust and Experience
The best tech tools for wealth management aren’t created overnight—making them requires experience, a bit of trial and error, and a lot of time for testing. Therefore, we recommend working only with reputable providers who have been in the market for at least a couple of years. Providers like us at WealthArc.
The Takeaway
Selecting the right tech tools for wealth management requires extensive research and often direct contact with providers. Yet, if you follow our tips from this article, the process will become significantly faster (though not fast—you still need to evaluate all your options!). The better the choice, the faster your business will grow, so remember to take your time if you have any concerns or struggle between two or more solution providers.
You may also read: Time eaters vs time savers: how WealthArc saved 1144 days for our clients in 2022
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