Even in the challenging market and economic environment, independent advisory firms are looking for opportunities to position themselves for long-term growth by investing strategically in their businesses. According to the Charles Schwab 2009 RIA Benchmarking Study, firms reported that they view technology investments as an integral part of maximizing efficiency while delivering high levels of client service. One in five advisors in the Schwab study describes their firm as an “aggressive” technology investor, with technology playing a critical role their business.
Why They Buy
Firms purchased new technology primarily to increase efficiency and enhance client service. Percent of respondents who said the motivation for their decisions were important or very important to:
Make our processes more efficient, saving us time 95%
Enhance the service we provide to clients 90%
Reduce our risk by increasing quality of processes
and reducing potential for error 84%
Set up our business to scale in the future
while adding fewer staff 82%
Help us differentiate firm from competitors 49%
Enable us to service new types of clients 30%
What Their Challenges Are
Firms’ top technology challenges included integration with existing systems and selecting a vendor. Percent of respondents who called the following issues a challenge or major challenge:
Integrating with existing systems 50%
Selecting the right vendor or solution 48%
Design changes to workflow 46%