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June 19, 2017 at 02:31 PM
When technology’s benefits are discussed with advisors, they are most often framed as a way to maximize your staff’s efficiency, lower costs and improve the client experience. In fact, I wrote about how you can improve the client experience and create “wow” moments for your clients using your technology in the first article in this series.
If you have made investments in your technology, those improvements can help beyond upgrading your service to clients; you can also be bold and take advantage of what you have when it comes to attracting new advisors to bolster your firm’s growth strategy.
(Related: RIAs Add Services Without Raising Fees: Schwab Advisor Study)
Growth through mergers or acquisitions is a viable option for advisory firms that have built a technology platform to support continued growth. You don’t need a billion dollars under management to attract a breakaway, but you do need a plan for how to use your technology to show why they should choose your firm.
The Value of Integrated and Institutionalized Systems
Most advisors didn’t get into this business to become the master of their back-office systems, so the technology investments you have already made are of value to other advisors.
While many advisors underestimate what it takes to build out their firm, even more underestimate the value they can bring to other advisory firms when they have already created those institutionalized processes.
There is an advantage to the practice you have built because it allows you to leverage your entire company. All your processes and workflows that dictate how your firm operates, and the day-to-day inner workings of your firm, are valuable to advisors who may be potential acquisition prospects.
Here’s one example: Your technology allows you to create a package you can easily offer to breakaway opportunities. When an advisor leaves a wirehouse, there are many elements of running a business to be explored outside of all the technology they need to select to run a truly modern office. Offering them a fully built-out technology platform could be the advantage that gives you a leg up to bring them onboard with your firm.
