It's no secret that the wealth management arena is becoming more crowded…and more competitive than ever. It can be difficult and time consuming to compete for and retain new clients, while at the same time maintain smooth business operations. Smaller firms must continue to differentiate themselves and establish investor trust without the luxury of large budgets. The good news is that there are tools available to smaller-sized advisors that 1) can allow them to appear larger, and 2) add scale to their business. In the end, each firm's owners must ask themselves, "Where do we add the most value to our clients and where should we be spending our time?"
For advisors that believe their time is best spent cultivating current client relationships and seeking out new business, part of the answer lies in outsourcing and leveraging technology. If outsourcing makes sense for you, the decisions concerning what to outsource and who to partner with become critical. In determining what to outsource, it starts with understanding the functions that are the core value proposition to your clients. For some, the answer is to turn over all aspects of asset management to a Turnkey Asset Management Provider (TAMP). These firms will provide a comprehensive, soup to nuts platform for managing clients' money.
