The Seven Mistakes to Avoid When Selecting Financial Technology
Dan Lang

By: Dan Lang on July 11th, 2019

Print/Save as PDF

The Seven Mistakes to Avoid When Selecting Financial Technology

Joel Bruckenstein  |  Financial Advisors  |  Technology  |  Wealth Management

Financial advisors face countless challenges in their daily practices – especially in this day and age. In order to implement a broader technology strategy at your firm, you must approach it from a technology as well as a business standpoint. Analyze how your business can benefit from the use of technology.

The 21st century is ushering in digital transformations, disrupting the way advice is delivered. Investors are smart, savvy and want a quick and easy access to their wealth portfolios. When it is time to select new technologies to keep up with the demands of these prospects, mistakes can be made and problems overlooked. 

We recently had the opportunity to catch up with T3’s Joel Bruckenstein and AdvisorEngine’s Craig Ramsey. Bruckenstein and Ramsey shared with us the seven biggest mistakes people make when evaluating and selecting technology – and how you can avoid them.

Bruckenstein-01 Bruckenstein is a guru on applied technology for financial professionals and publishes Technology Tools for Today (T3) -- he hosts the annual T3 Advisor Conference, the premier technology conference for independent financial advisors. For over two decades, Bruckenstein has advised financial service firms of all sizes on improving their technologies, processes and workflows.
Ramsey-01 Ramsey is a FinTech futurist and business builder. Throughout his career, he has worked in consulting, investment banking, strategy and operations leadership roles at Accenture, BofA Merrill Lynch, UBS and WisdomTree. At AdvisorEngine, he leads the executive management committee and keeps the company aligned.

MISTAKE #1: Not thinking holistically about your technology stack

Bruckenstein

Ramsey

“Many, many advisors focus on solving one immediate pain point…but you need to think holistically!”

“By taking time to consider how your needs will evolve as you scale, you will save yourself time, money and frustration in the future. Your technology stack should be flexible and modular - allowing you to adapt over time.”

MISTAKE #2: Only looking at established technology providers

Bruckenstein

Ramsey

“If you’re not evaluating emerging FinTech companies, you’re missing out on innovation.”

“It’s not just the well-known technology firms that are bringing new products to market. By widening your lens on who you evaluate, your clients and your business can benefit.”

MISTAKE #3: Focusing on cost instead of benefit

Bruckenstein

Ramsey

“Selecting technology vendors on price is not a winning strategy. Your time is too valuable, and your client experience is too important.”

Costs are easier to quantify than benefits, so many people default purely to price rather than thinking strategically. Instead, consider how technology partners can bolster your brand, enhance your value proposition and save you time to improve your bottom line.”

MISTAKE #4: Neglecting to gather employee perspectives – especially from the next generation

Bruckenstein

Ramsey

“If you’re not asking your younger employees to evaluate technology, you’re doing yourself a disservice. Include them in the process.

With that said…on the other side of the spectrum…don’t just throw an intern at it!”

“Capturing cross-generational perspectives helps ensure that your technology decisions are both forward-thinking and practical. 

Some of the best creative ideas come from people who are new to the industry, because they don’t see barriers or constraints in the same way that experienced practitioners do.”

MISTAKE #5: Believing that all back-office providers are created equal

Bruckenstein

Ramsey

“Not every broker dealer or custodian integrates well with modern technology.”

“Before joining a new company or starting your own wealth management firm, make sure to investigate technology solutions before your taking your next step.”

MISTAKE #6: Brushing aside security

Bruckenstein

Ramsey

“Don’t forget to consider security when selecting new technology providers.” 

“Performing security diligence on technology providers is an important activity.

Equally as important is adding processes at your firm to mitigate employee or client actions that introduce security risks. Many security issues are caused by unintentional human behavior.”

MISTAKE #7: Thinking of technology as a project instead of a journey

Bruckenstein

Ramsey

“I hate to break it to you, but technology decisions never end. That certainly doesn’t mean you should be opening up your tech stack every year…but your eyes need to be open, or you will fall behind.”

“Leading wealth management firms are always looking to iterate and improve how they use technology across the wealth management value chain.”

Many advisors find the following to be their greatest areas of need:

  • Client Relationship Management (CRM)
  • Onboarding
  • Automated Billing
  • Third party integrations
  • Serving small balance accounts  

AdvisorEngine provide holistic solutions for all of these needs, helping you avoid all of these mistakes. We build powerful and intuitive technology for financial advisors - let us help you embrace innovation without disrupting your business.

Our team is made up of enterprise technologists, data scientists, designers, futurists and former financial advisors working together to create the future of financial advice. Let our team, be your team and help you deliver your best advice – schedule a demo today!

This blog is sponsored by AdvisorEngine Inc. (“AdvisorEngine”) The information, data and opinions in this commentary are as of the publication date, unless otherwise noted, and subject to change. This material is provided for informational purposes only and should not be considered a recommendation to use AdvisorEngine or deemed to be a specific offer to sell or provide, or a specific invitation to apply for, any financial product, instrument or service that may be mentioned. AdvisorEngine makes no representations as to the accuracy, completeness and validity of any statements made and will not be liable for any errors, omissions or representations. As a technology company, AdvisorEngine provides access to award-winning tools and will be compensated for providing such access. AdvisorEngine does not provide broker-dealer, custodian, investment advice or related investment services. 

About Dan Lang

As a leader on AdvisorEngine's business development team, Dan works directly with financial institutions and advisors in order to optimize innovative efficiencies and help deepen their relationships with clients. He works alongside enterprise technologists, data scientists, designers, futurists, business builders and former financial advisors to create the future of financial advice.