The Case for Upgrading Legacy Technology

The need to increase productivity has sparked a shift in how enterprise wealth firms operate. Fueled by younger-generation clients and their desire to harness automation, advisors and their staff are seeking new technology solutions, pushing enterprise wealth firms to adapt in order to stay competitive.

Over the past five years, organic growth for wealth management firms has been below 4%, with most asset growth driven by market performance or mergers and acquisitions. This low organic growth is a significant issue.  

Our research indicates that current gaps in tech stacks hinder growth, with 65% of advisors in our 2024 Connected Wealth Report stating their technology setup needs improvement. We anticipate the next wave of enhancements will focus on retaining top talent, attracting young advisors, improving productivity, and significantly boosting back-office efficiency. 

In short, embracing a modern technology stack is the only way firms can remain competitive and resilient in today’s fast-paced financial landscape. 

Here is an excerpt from our latest whitepaper—Modernizing Legacy Tech to Unleash Productivity:  

The Case for Upgrading Legacy Technology 

Every firm starts their innovation journey in a different place and for a distinct reason. But, across-the-board, we’re seeing firms benefit from innovation and automation in a couple of ways that help them move the growth needle farther and faster. 

Higher organic growth 

The right technology stack equips advisors with the tools they need to manage and expand their business. This means providing them with a seamless platform that offers a holistic perspective on their clients’ financial needs.  

Improved productivity 

Advanced software, intuitive mobile apps, and real-time analytics dashboards enable advisors to offer personalized investment advice, monitor client portfolios more effectively, and respond swiftly to market changes. Automation of routine tasks, such as account opening and compliance review, streamlines operations and reduces manual errors.  

Lower advisor churn 

In a recent survey conducted by Advisor360°, a staggering 92% of advisors said they would switch firms over bad tech. This highlights the need to deliver cutting-edge digital solutions that not only enhance advisor productivity but also boost job satisfaction and retention rates. 

Client retention 

In our survey we found that 58% of advisors have lost clients and prospects due to tech troubles. Modern client portals give advisors’ clients a seamless and intuitive interface for accessing investment increasing information and communicating with their advisors, fostering trust, and transparency in advisor-client relationships. 

Risk management 

Firms need access to 24/7/365 incident response and software that follows a strict adherence to national and international standards—such as HIPAA, SOC 2 Type II, and NIST. By prioritizing solutions that yield stringent security measures, firms can uphold the highest standards of data protection while maintaining the trust and loyalty of both advisors and clients. 

Read the full whitepaper to learn more about modernizing legacy technology and unleashing your productivity potential.