The tech stack tangle

Financial advisors are swimming in a sea of software. But the technologies needed for account opening, financial planning, customer relationship?management, investment management and compliance, among other everyday functions, can resemble a sprawling mass of free-floating seaweed. And while a tech stack that is less Sargasso Sea and more crystalline Bahamas beach is key to growing an advisory practice, it’s still far from in hand for many planners.

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Wealthtech editor Justin L. Mack’s look at a new report from fintech company Advisor360° found that 65% of 300 advisors polled?said they had lost business from clients or prospects due to their clunky wealth management software. You might have a great niche, sharp investment skills and strong holistic game, but subpar tech and a lack of integration among systems is irritating to you, annoying for clients and bad for your business.

The report’s findings echo those of Financial Planning's 2022 Tech Survey, which?revealed that advisors are less than thrilled with the technology they use. Just 38% of those surveyed said their firm has "definitely" focused on the right tools needed to remain competitive. The rest either reported some doubts (49% answered yes, probably), disagreed with their company's decisions (5%) or weren’t sure (8%).

What advisors really want is the ability to configure their own ecosystem, according to FP’s latest podcast, with Lincoln Ross, the CEO and president of New Jersey-based fintech firm CircleBlack. Call it ecosystem orchestration — a term that would make a great title for a financial services cover band. That’s Justin’s comparison, and his podcast is invaluable for advisors dealing with tech stack trauma.

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