Clients embrace technology that can create more time for deeper discussions about their financial future. The majority of clients want the ability to visualize a range of outcomes\u2014something 88 percent said would provide greater confidence in their financial plan.1<\/sup>\u00a0And 92 percent of them are looking to you for tools that help manage risk.1<\/sup><\/p>\r\n Other client priorities in the InvestmentNews tech study include improved ways to estimate future income, more personalization in financial services, and better coordination among accounts.<\/p>\r\n We coined the term \u201cexperience stack” to define the use of technology to streamline and enhance client and financial planner experiences. At the core of the experience stack are applications that are robust and well-integrated with one another, freeing you to spend more time building meaningful relationships.<\/p>\r\n The InvestmentNews study highlights firms that have found the experience stack that works for them, dubbing them “innovators.” These super-productive firms generated 37 percent more revenue per employee than peers while spending 17 percent more on technology.1<\/sup>\u00a0Software usage is higher across the board for innovators, from portfolio rebalancing and account aggregation to financial planning tools. Their priorities offer insight into what the future may bring for others in the industry.<\/p>\r\n When you have the right mix of tech, it shows. Nearly 71 percent of clients said technology allows their advisor to connect on a more personal level.2<\/sup>\u00a0An additional 75 percent said these tools make space for their advisor to focus on what’s important to the client.2<\/sup>\u00a0Yet getting there is harder than it looks.<\/p>\r\n In 2021, advisory firms’ tech spending accelerated, with a 15 percent1<\/sup>\u00a0increase from 2020 to an average of $135,000 spent.<\/p>\r\n Financial professionals make these purchases in the hopes of increasing efficiency and satisfaction. However, they often face these five common pitfalls.<\/p>\r\n Buying a tool is one thing\u2014making the most of it is the real challenge. One study showed that only 8 percent of advisors strongly agree they’re making the most of their financial planning software.2<\/sup><\/p>\r\n Nearly 52 percent of advisors said maximizing their firm’s current technology will be most important in meeting their growth goals.1<\/sup><\/p>\r\n By investing in training, you can empower advisors to maximize their capabilities.<\/p>\r\n You buy software, and it works great in the accumulation phase. However, after a few years you realize it’s not meeting the more sophisticated needs of retirees in the decumulation phase.<\/p>\r\n In general, it’s a smart move to invest in software that can evolve with your practice. By beginning with the end in mind, you can avoid the hassle of switching entire systems out when your clients’ needs grow more complex.<\/p>\r\n <\/b>Creating a tech stack that’s seamless is a daunting task. More than half of practices said the lack of integration among core software applications was their biggest pain point.1<\/sup><\/p>\r\n People have come to expect tools that can bring together scattered pieces of data into a meaningful picture. Integration between core elements of your tech stack can help make that happen.<\/p>\r\n More than half of advisors feel that manual data entry is the most tedious step in\u00a0client onboarding<\/a>.3<\/sup><\/p>\r\n Only 24 percent of advisors have fully digital account opening, though 28 percent of clients demand a fully digital onboarding experience.1<\/sup>\u00a0There’s definitely room for improvement here.<\/p>\r\n A financial platform that makes digital data entry a snap for the planner and client will be essential to efforts to scale up a practice. It might even inspire more robust business development efforts.<\/p>\r\n Technology that makes life easier for clients should take priority. That includes a mobile-compatible client portal\u2014a key element of your experience stack.<\/p>\r\n About 73 percent of consumers find value in having a portal to view their financial picture.1<\/sup>\u00a0However, only 62 percent of advisors offer one.1<\/sup><\/p>\r\n A high-quality portal equipped with account aggregation can provide a comprehensive view of a client’s finances and have a positive impact on their overall satisfaction. Having access to this on-demand, on any device can help investors stay focused on their goals and get the answers they need.<\/p>\r\n To build an integrated tech stack that can evolve along with your practice, start with the right core technology. From there, explore ways to maximize its value for your select clients.<\/p>\r\n By focusing on the experience stack, you can streamline workflows to deliver value through the ups and downs of the market. Instead of selling a product, you’ll be selling outcomes\u2014the lifestyle that goals- and cash-flow based planning can help people achieve.<\/p>\r\n To explore more research on this topic, read\u00a0The Experience Stack<\/a>\u00a0<\/i>guide or view our webinar,\u00a011 Ways to Engage with Purpose.<\/i><\/p>\r\n\r\nThe Experience Stack: Purpose at the Core<\/h2>\r\n
Five Tech Stack Traps<\/h2>\r\n
Trap #1: Skimping on Training<\/h3>\r\n
Trap #2: Ignoring Future Needs<\/h3>\r\n
Trap #3: Focusing on the Parts, Not the Whole<\/h3>\r\n
Trap #4: Using Clunky, Paper-Based Onboarding<\/h3>\r\n
Trap #5: Neglecting Client-facing Tools<\/h3>\r\n
Delivering Value<\/h2>\r\n
![\"The](\"https:\/\/blog.emoneyadvisor.com\/wp-content\/uploads\/2019\/08\/ipad-ebook-stack.png\")
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