Technology empowers financial advisors and plays a pivotal role in scaling firms and elevating client satisfaction.
Financial advisors looking to scale their firms and offer better client services need a technology edge. A J.P. Morgan Chase study of 1,000 asset managers finds clients who work with tech-savvy advisors see their fund operating costs drop 39% while their average dollar target for returns rise by 19%, according to a report1.
Technology alone, however, is not enough. Advisors must consider how these tools and platforms can develop operational efficiency within their firm. This approach creates a two-fold solution. First, it improves back-office processes. Second, it addresses clients' concerns as the firm begins to scale.
For advisors and their firms, building operational efficiency requires investment in tools such as automation software and customer relationship management (CRM) platforms. From there, advisors can quickly and efficiently address many customer concerns through better marketing, sales, and improving the overall customer experience.
Automating and Streamlining Back Office Operations
Every advisor's process is unique, but streamlining those operations is a must.
Advisory firms must identify back-office inefficiencies and determine which manual tasks can be automated. This approach frees up advisors' time, which can be better used to address clients' concerns and financial needs.
Automation makes these enterprise technology systems more efficient. These tools reduce physical paper and ensure that various software systems are optimized to produce the best results. This approach also allows advisors to focus on high-value, high-touch services while scaling their client base.
In a September 2021 report published in the Harvard Business Review2, the authors wrote that enterprise technology upgrades help firms eliminate work by automating some processes.
The HBR report notes technologies like "robotic process automation (RPA), workflow, and intelligent document processing can free up workers and make each person much more effective at creating value."
This is where technology investments, including investments in CRM, help speed up automation.
A June 2023 report from research and consulting firm Forrester3 finds top-end CRM solutions specializing in financial services include packaged workflows, data models, and extensions to core systems to help manage customer experience while allowing for more marketing, sales, and services automation.
Focus on Client Experience
As advisors look to increase operational efficiency through automation, they also must consider how a new CRM system improves the client experience.
Advisors who consider operational efficiency from the client's perspective can identify areas for improvement on the front end, according to a 2023 Financially Simple podcast episode4. The show pointed to the onboarding process as one area to review, noting that top-performing firms spent an average of 13 fewer annual hours to acquire a new client compared to other firms. If a firm acquires ten new clients each year, that could be a difference of 130 hours.
