A pivotal decision in the digital era
In today’s wealth management landscape, the pressure to modernize is unrelenting. Advisors and clients alike expect seamless digital experiences, while compliance requirements tighten and operational complexity grows.
This dual challenge has left many firms facing a high-stakes decision: Should they build their technology in-house or buy it from specialized vendors?
While building may seem like the path to control and customization, research and real-world experience show that buying technology is not only more strategic but also more cost-effective, scalable and reliable.
Docupace’s “Buy vs. Build Guide” outlines the evidence that wealth management firms gain far more by buying technology than by building it internally.
1. Cost Control: Managing the Hidden Expenses of Building
At first glance, building seems cheaper. But under the surface, development costs spiral quickly. Research indicates that 70 percent of software projects exceed their initial budgets by an average of 27 percent.
Buying, on the other hand, provides cost predictability and allows firms to tap into an existing proven infrastructure without the burden of ongoing updates or staffing.
More importantly, subscription-based pricing transforms large capital expenses into manageable operational costs with vendors distributing development expenses across their client base.
“By 2028, firms adopting tech-as-a-service models could see a 12 percent revenue boost,” according to PwC research.
Buying advantage: Enables predictable pricing, faster revenue realization and lower total cost of ownership.
2. Time-to-Market Creates Competitive Advantage
In wealth management, speed isn’t just an advantage; it’s a differentiator. According to Forrester, buying technology accelerates launch speed four times compared to internal development.
Clients now expect fully digital onboarding and improvements within six to 12 months, according to the Capgemini World Wealth Report. That means firms building internally risk falling behind, while those that buy can deliver faster, enhance advisor efficiency and attract new clients sooner.
Technology-savvy advisors (those who leverage automation, CRM integration and analytics) report higher assets under management (AUM) growth and new client acquisition rates. By deploying proven technology sooner, firms can amplify these outcomes.
Buying advantage: Rapid implementation enables faster advisor adoption and measurable client impact.
3. Built-In compliance: reducing risk automatically
Compliance is one of the most resource-intensive aspects of wealth management operations. Frequent regulatory changes, from FINRA updates to SEC audits, demand constant vigilance.
Docupace’s Buy vs. Build Guide highlights that firms using vendor technology report 60 percent fewer audit exceptions and compliance violations compared to those using in-house systems.
Vendor platforms continuously update to align with the latest regulations, ensuring compliance is “baked in” to every workflow and data flow. This automated adaptability saves firms time, mitigates penalties and protects their reputations.
Buying advantage: Compliance modules are maintained by experts, reducing risk and legal exposure.
Ready to dive into the report and discover more about Docupace’s showcase? You can read and download the report online here.
4. The talent gap: a major build limitation
Developing and maintaining in-house systems requires top-tier software engineers, cybersecurity experts and regulatory technologists. Unfortunately, that talent is in short supply.
According to PwC, 64 percent of IT leaders in financial services lack expertise in key areas such as cybersecurity, API development and RegTech.
This talent shortage not only delays projects but increases the risk of security gaps and inconsistent system quality. Vendor solutions eliminate that risk by providing dedicated expert development and support teams, freeing internal resources to focus on client service and strategic growth.
Buying advantage: Allows access to ongoing innovation without relying on scarce or overstretched internal teams.
5. Vendor innovation outpaces internal development
Technology evolves faster than ever with AI, automation, and predictive analytics reshaping financial services. Firms that rely solely on internal builds struggle to keep pace.
Docupace’s Buy vs. Build Guide notes that 82 percent of wealth managers rely on vendor partnerships to stay innovative and competitive.
Vendors offer continuously evolving product roadmaps integrating new features, security updates and compliance enhancements seamlessly. This ongoing innovation ensures firms stay aligned with industry trends without devoting resources to constant redevelopment.
Buying Advantage: Continuous improvement reduces technical debt and enables future-ready infrastructure.
6. Focus internal teams on differentiation, not maintenance
Internal development resources are finite and often stretched thin across competing priorities. When firms allocate these teams to building and maintaining large-scale systems, they risk neglecting high-value initiatives such as client portals, mobile apps and personalized planning tools.
The most successful firms focus their internal innovation on what makes them unique, not on reinventing back-office systems. By purchasing standardized, compliant, and scalable platforms, they can redirect resources toward differentiated client experiences.
Buying Advantage: Lets vendors handle repeatable operations so teams can invest in strategy and innovation.
7. Cybersecurity and risk management: trust the experts
Cyberattacks targeting financial institutions have surged in both sophistication and cost. For wealth management firms, cybersecurity is no longer optional; it’s essential.
By leveraging specialized vendor technology, firms gain enterprise-level protection maintained by dedicated security teams that monitor evolving threats 24/7.
As Docupace’s Buy vs Build Guide emphasizes, “Cybersecurity must be foundational to any technology system and continually tested and updated.”
Buying advantage: Stronger security posture reduces breach risk and builds-in resilience.
Conclusion
The Buy vs. Build debate has evolved from a philosophical question to a strategic imperative. For wealth management firms navigating digital transformation, buying technology isn’t just smarter, it’s essential. With the right vendor partnership, firms can accelerate growth, safeguard data and focus on what truly matters: delivering exceptional client experiences.
Interested in reading the US RIA Toolkit 2026? You can read and download the report online here.
About the US RIA Toolkit 2026
The US RIA Toolkit 2026 describes an era of transformation for the RIA ecosystem. Rapid growth, accelerating consolidation, and rising client expectations are converging with advances in technology and artificial intelligence (AI) to reshape how RIAs compete, scale, and serve clients. This report is intended to help RIAs and those serving the segment to navigate this transformation. It highlights real-world technology solutions, implementation strategies, and resources designed specifically for RIAs operating in an increasingly complex environment.
With RIA assets under management at historic highs, private equity activity accelerating, and a growing number of advisors making the jump to the RIA segment every year, competitive differentiation has never been more important. From digital client experience and automation, to AI-driven personalization and cybersecurity, this report explores the tools that can materially improve efficiency, growth, and client satisfaction.
Our broader Toolkit Report Series covers thematic, geography and wealth manager segment-focused reports, each tasked with delving into the topics and supporting technologies of relevance to help wealth managers of all types better understand how they should bring technology into their business and in which areas.
About The Wealth Mosaic
The Wealth Mosaic is a UK-headquartered online solution provider directory and knowledge resource, focused specifically on the wealth management industry.
For wealth managers, the buy side of our marketplace, The Wealth Mosaic is designed to enable discovery of key solutions, solution providers and knowledge resources by specific business needs.
For solution providers and vendors, the sell side of our marketplace, The Wealth Mosaic exists to support the positioning, exposure and business development needs of these firms in a more complex and demanding market.
For more information, visit: www.thewealthmosaic.com
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