With the rapid development of financial technology, more and more investment advisors are leveraging IT services to streamline operations and enhance client services. However, choosing the right technology solutions that align with business goals can be challenging. This article will provide an overview of essential IT services for registered investment advisors to improve efficiency, comply with regulations, and deliver an exceptional client experience.
Outsourced CIO services reduce costs while accessing expertise
By partnering with an outsourced CIO (OCIO), advisors gain investment strategy expertise without added overhead. OCIOs develop customized asset allocation models, conduct due diligence on investment managers, and provide ongoing performance reporting. This allows advisors to focus on client acquisition and retention while benefiting from institutional-level resources.
Integrating CRM and portfolio management software
Combining customer relationship management (CRM) systems and portfolio management software creates a single platform to store client information and performance data. This enables advisors to provide personalized service informed by holistic insights into each investor.
Automating workflows with custodians streamlines operations
Robust integration between advisor technology stacks and custodians paves the way for straight-through processing. Automatic data feeds, paperwork handling, and workflow triggers reduce manual processes and errors caused by re-keying data.
Migrating communications to the cloud enhances security
Utilizing secure cloud-based services for email, file sharing, and virtual meetings safeguards sensitive client information. The cloud offers robust access control, encryption, and data resilience to support advisor compliance needs.
Leveraging APIs expands capabilities and agility
Application programming interfaces (APIs) enable advisors to connect their core software tools to external platforms that provide valuable capabilities like account aggregation, online client portals, and custom reporting. This makes it faster and easier to meet evolving client expectations.
By leveraging modern IT infrastructure and services tailored to registered investment advisors, firms can reduce operational costs, strengthen security and compliance, and deliver a superior client experience. Outsourcing technology functions to partners with specialized expertise also allows advisors to focus on their core competency of investment strategy and client relationships.