The most effective registered investment advisors (RIAs) have a knack for providing clients with timely advice that helps them bolster their financial health and protect essential assets. However, top-tier advisors can also take full advantage of emerging financial technologies, more commonly known as “fintech,” to enhance the overall client experience.

Fintech has forever changed the RIA industry and will continue to shape it in the coming years. If a registered investment advisor wants to be counted among the best in their field, then they must learn to leverage fintech.

Benefits of Fintech for RIAs

Here are the advantages of fintech:

Improved Collaboration

Fintech can improve every interaction between RIAs and their clients. Financial advisors can also use fintech to enhance the level of transparency with which they operate.

Many fintech tools also have client-facing applications or interfaces that allow individuals to review their portfolio simply by opening a mobile app. These types of fintech solutions can give clients peace of mind while simultaneously reducing the number of phone calls and emails that RIAs must field each day.

In turn, this will make each interaction with clients more purposeful and efficient.

Optimized Use of Data

Financial advisory firms—and virtually every other type of business that leverages digital assets—are collecting more data than ever before. However, quite a bit of this information goes unused. Much of it is never even looked at after it is collected.

While fintech solutions cannot solve this data usage problem on their own, they can certainly remedy some of the major pain points that it creates.

Top fintech software includes sophisticated data analysis tools that RIAs can use to gain valuable insights into a client’s financial health. They can take advantage of this actionable intelligence to guide client decision-making and protect clients’ assets.

Better Outcomes for Clients

The most important benefit of fintech is that RIAs can use these technologies to become better stewards of their clients’ resources. Fintech tools can be used to conduct advanced market analysis, calculate break-even points, accurately predict when a client will be financially ready for retirement, and much more.

By using fintech to provide clients with better outcomes, financial advisors can develop a sound reputation within their industry. This reputation will allow them to acquire more clients and grow their presence in the competitive financial advising sector.

Types of Fintech Every RIA Should Be Using

Whether a financial advisor specializes in retirement planning or provides a dynamic range of services, there are fintech solutions available to meet their needs. These technologies can enhance the efficacy of an RIA’s guidance and help them better serve their clients.

Some of the best fintech solutions for RIAs include the following:

Portfolio Management Software

As the name suggests, portfolio management software is used to oversee a client’s entire financial portfolio. This robust fintech solution includes data analysis tools, tracking software, and asset trading capabilities.

Portfolio management software usually includes an easy-to-use dashboard that can provide an advisor with a quick snapshot of a client’s portfolio. The technology also includes reporting tools so that the advisor can assess the health of the portfolio.

Modern portfolio management software is a true must-have fintech solution that every RIA should invest in.

Customer Relationship Management Platforms

Customer relationship management (CRM) platforms are designed to enhance information sharing and collaboration between clients and advisors. These CRM platforms typically include automation tools so that advisors can eliminate the need to perform redundant tasks.

For instance, a CRM solution will likely be equipped with email campaign management tools that allow advisors to send out automated messages to clients at customizable intervals. These campaign automation tools can also be used to target leads and encourage them to purchase advisory services.

By automating tedious tasks, advisors can free up more time for client-facing activities. This approach will allow them to provide a higher level of service to clients while also nurturing relationships with current and potential customers.

Data Analysis Tools

Data analysis and reporting tools are some of the most valuable types of fintech. Using data analysis technologies, advisors can gain detailed market insights and help their clients make wise decisions. The reporting tools can also be used to update clients on the state of their financial portfolio during monthly or quarterly meetings.

If you are a financial advisor considering changing broker-dealers, fintech is an incredibly important component of the overall decision. If you would like to learn more about how fintech can help you better serve your clients, Bridgemark Strategies can help. We provide consulting, recruiting, and M&A services to financial advisors and can assist you in finding the ideal solution or firm for you and your clients’ needs. Contact us today to learn more.

Work with Bridgemark Strategies

Bridgemark Strategies is a leading M&A, recruiting, and consulting firm.  We help advisors evaluate, assess, and negotiate the search for a broker-dealer, RIA, and strategic partner. Our team makes it easy for advisors to find their next firm. Reach out to us today at (866) 266-8823 or on the web through our contact form to set up a confidential discussion and find out more about our services.