How Registered Investment Advisors in Los Angeles Use Technology

In 2014, Maximizer CRM polled over 900 registered investment advisors, all of whom were categorized based on net worth, practice income, and rate of new client acquisition.

The poll showed 56% of the “top” RIAs indicated that their technology spending was expected to increase. In contrast, only 22% of the other advisors reported plans to increase their IT budgets.

We can draw two conclusions from this research:

Technology is an essential component of a successful practice
The more a firm invests in technology, the better it performs

Benefits of Technology for Los Angeles RIAs

Use of the right software and applications can make repetitive tasks simpler, streamline daily workflow, and free up RIAs to focus on building their client portfolio and growing the firm’s assets.

If a task requires a Series 7 or 66 license, the RIA can dedicate his or her attention to it. Anything else, from supplying account information to running a portfolio model, can be handled by the administrative staff.

The Value of CRM Systems

CRM software is another important component of a successful registered investment advisor’s practice. It streamlines the process of communicating and following up with clients and prospects. Many clients transfer their business to other firms because they do not hear back from their regular advisors, so regular communication cannot be underestimated.

When properly set up, a good CRM system can generate lists of clients who need to be contacted and when. If an advisor tells a client that they will look into an opportunity and follow up next Thursday, failure to do so will cause that client to lose confidence. CRMs make it easier for RIAs to maintain the trust that is so essential to the financial services business.

CRMs can also enable RIAs to increase the value of their practices by managing client accounts efficiently, keeping track of account-related tasks, and set reminders. In the Maximizer poll, 69% of the top RIAs stated that incorporating a CRM into their IT infrastructure allowed them to manage their business more efficiently while remaining compliant with industry standards.

Bottom Line

Developing a technology plan and revisiting it on a regular basis will help ensure that the firm’s software, hardware, and web-based solutions will continue to contribute to overall company value. For maximum efficiency, Los Angeles registered investment advisors adopt a strategy that is long-term yet flexible, allowing the company to adapt its tech plan as the industry evolves.

Does your firm have a technology plan in place? Do you feel that it has contributed to operational strength and stability? Let us know your thoughts in the Comments box below.

And to follow-through on the tips introduced in this short article, be sure to download your free guide, Investing in High Net Worth Clients: The LA Investment Advisor's Guide to Using Technology to Manage and Grow Your Firm.