Technology is more than just an accessory to your firm – it’s the foundation of how you conduct business, interact with clients and so much more. That’s why the most successful advisors know that investing in a holistic tech stack is key to growth.
Embracing tech is also crucial to advisors who hope to thrive in the Great Wealth Transfer, where close to $60 trillion in wealth will be passed on from boomer clients to their loved ones.
A well-rounded tech stack can improve every aspect of your firm’s functionality, from prospecting to compliance and everything in between. A great way to begin building your tech stack is by outlining your goals. Do you want increased client retention? Better marketing? An automated solution for compliance concerns?
The most successful advisors know that a comprehensive tech stack can deliver all that and more. Here are seven ways top-tier advisors use technology to scale growth.
7 Ways Successful Advisors Use Technology to Scale Growth
1. Connect with clients
Client relationships are the key to your firm’s success and long-term client retention. A great way to build those relationships is to focus on each client’s unique goals – are they saving for a retirement near the grandkids? Hoping to open their own bookstore? Whatever their goals, your ability to connect real life to their finances can help them stay on track and realize the value you’re bringing to the table.
With tools like Lasso, clients can begin building their goals right on their smartphone. In just a few clicks, they can create plans and share those directly with your firm. Another bonus? There’s no limit to how many goals clients and prospects can create! As their priorities shift, Lasso is there to help adjust their savings and investing strategies.
2. Engage new prospects
Finding the “right” prospects can be tough – what should you be looking for?
Ultimately, the primary categories that most advisors use to define the “right” prospects boil down to three things: Goals, investable assets and timeline.
Those three pillars form the basis of Lasso’s lead-gen tool. Investors pick a goal, set a timeline and add how much they have already saved toward that goal.
Then you as the advisor can browse investor profiles and plans, giving you an immediate picture of those important factors so you can start your relationship on the right foot.
From the comfort of your office, you can engage directly with qualified prospects using modern tech tools, saving you time and money along the way.
3. Stay on top of compliance
There are a host of compliance software options available to streamline and automate your compliance checks, from compliance reporting to automated billing, and everything in between.
In addition to saving your team the time of manual data entry, compliance software can help your firm reduce opportunities for human error. The upfront cost of adding compliance software to your tech stack is far outweighed by the peace of mind your team will have during those annual compliance reviews.
4. Find a work-life balance
A recent Kitces survey found that client-related work consumes over 26 hours per week for a financial advisor. Whether it’s meeting with clients, talking on the phone or creating reports – your time with each client is limited.
If you have tools that can automatically create those reports in stunning deliverables, that’s more time you have to focus on the important relationship-building aspect of your work. You’ll also have fewer evenings spent in the office where you should be at home with your family.
Similarly, tech tools that streamline your marketing efforts can save you and your team a substantial amount of time, thus increasing your work-life balance.
Some of the most popular tools that help advisors communicate better and create deliverables include:
- Holistiplan (tax planning)
- Riskalyze (prospecting)
- Snappy Kraken (marketing automation)
- Asset-Map (financial planning)
5. Expand your services
Digital platforms for financial advisors are revolutionizing the industry. It’s now easier than ever to add on tax planning, estate planning, charitable giving and other services to your clients – without taking up too much of your time.
While focusing on your niche can help gain new prospects, offering holistic services can reveal assets held away, thus increasing your AUM.
Wondering what all the options are out there? Be sure to check out Michael Kitces’ Financial Advisortech Directory. The team over at Kitces has done the advisory world a huge service by making it easier to navigate and find new technology.
6. Network with other advisors
Although there are nearly 15,000 RIAs in the U.S. alone, the financial advice industry is surprisingly tight-knit. Whether you’re hopping on social media to participate in the #fintwit community, attending a fintech conference, or grabbing a virtual coffee with other professionals, networking with other advisors can help you keep your thumb on the pulse of financial advising.
7. Plan the future of your firm
At some point, you’ll have to start thinking about how your firm will go on once you’ve hung up your hat. Will you choose an internal successor? Sell your firm to a larger practice? Succession planning can feel complicated and overwhelming.
Tech can help plan your succession and ease the transition once that time arrives. If you have an internal successor who’s already trained on your various digital platforms, they’re already a step ahead to learning the ropes.
If you’re deciding on an external successor, online groups (such as those on LinkedIn) can help you make contact with potential buyers, while also gaining valuable insights from firms who have already been through the process.
With the right tech by your side, you can connect with key players in your succession plan, while also maintaining transparent communication with your clients.
Harness Tech Tools with Lasso
Lasso is here to help you connect directly with clients ready to start their financial planning journey. Click here to download Lasso and get started today.