Getting Started with Technology

When you’re starting your new RIA business, it is as important to consider your technology platform as it is to rent office space, hire staff and set up your phones.

When considering the various technology applications you need to set up your new RIA business, it is important to begin with a key understanding of what services you will provide, which custodians you’ll work with and what type of investing and financial planning you’ll be managing along with the basic “infrastructure” technology you’ll need. By leveraging the powerful features in advanced advisor-focused technology applications, you can grow and scale your business without adding costly overhead and additional staffing.

For most advisors, building a solid technology foundation can be done with 6 core areas:


Technology Map


Document Management

Due to the highly regulated nature of the financial services industry, having a solid document management system is critical to meet the compliance requirements of the SEC, FINRA and other regulators. In addition, the ability to save space on filing cabinets, increase efficiencies, provide security to critical client information and automate work flows, make document management the application around which you can build your back-office.

CRM

Customer Relationship Management (CRM) technology is also a critical area in which to invest. CRM software with its powerful data driven features and functionality provide the technology “backbone” of your firm. By keeping client information in one application, you can easily keep track of your client’s various needs as well as use it for a prospect database. Further, through advanced “task management” features, CRM when integrated with Document Management automates daily workflow, streamlining your operational processes, allowing you to grow and scale your business without adding staff.

Portfolio Accounting and Performance Reporting

In today’s volatile markets, you need to have up to the minute information on your client accounts and be able to provide advanced performance reporting. Through advanced technology and links to all of the industry’s leading institutions and custodians, that critical functionality is available, allowing you to keep track of investment performance, cash movements and provide comprehensive reporting to your clients both online and in print, in real time.

Investment and Financial Planning

As you work with your clients and develop their long-term financial and investment plans, powerful software is available to automate that process to crunch the numbers, develop asset allocation strategies and Investment Policy Statements. Particularly in these volatile markets, having a written plan in place goes a long way towards helping you manage your client expectations. Investment Policy Statements (IPS) are a written document crafted for a specific investor which outlines all of the most important issues, including goals, policies and procedures as agreed to by both advisor and client for the purpose of managing the client’s investments. The IPS process educates clients to the ups and downs of the markets, their risk tolerance levels and what to expect over time.

Online Presence

With the pervasiveness of the World Wide Web and its adoption by just about everyone, having an online presence for your new business is critical, both for existing clients and prospects. Due to new innovations, you can leverage your internet site to not only communicate the key information and benefits of your firm to prospective clients, you can also use it as a client portal where you can deliver, online, information, reports, articles and other key information to manage your client relationships online. This ability frees you up to not have to print, collate and mail statements, reports and other costly communications. Through advanced functionality of CRM, document management and portfolio accounting/performance systems, this becomes a very easy service approach for you to deliver online, again, saving on money and operational staff time.

Office Infrastructure

In order to complete your office infrastructure, you need to put in place the basic systems, e.g. phones, pcs, scanners, copiers, and other hardware. For many advisors, going with the brands known for quality and service is a fairly simple and straightforward approach. Additionally, with the continued innovations in computational power, costs for servers, pcs and laptops have come down in price. We do recommend working with a local IT consultant or solutions provider to help setup a networked office and can also provide ongoing support, data backup and disaster recovery.

Activity
Technology Tools
Opening New Accounts
CRM & Custodian Portal
Developing Investment Plan
Investment Policy Statements
Managing Money Movement and Performance
Portfolio Accounting System
Streamlining Workflow
Document Management System
Managing Compliance and Audit Preparation
Document Management System
Trading and Portfolio Rebalancing
Custodian Portal