In my 20 years of helping Australian financial advisory businesses scale, I’ve encountered many myths around financial services technology. When it comes to scaling and creating both efficiency and a better client experience, technology is the key, regardless of firm size.

Myth #1: New technology will change our business too much
Some financial advisers avoid changing the way they do business because they have gotten accustomed to doing things in a certain way. They might view new technology with scepticism; it could replace existing workflows and processes that have been in place for years. However, the benefits of new technology far outweigh any disruption they might cause.

Using innovative technology gives advisory teams more time to spend with clients and work to create a personalised experience for them. In particular, business management software helps advisers organise their team’s workload, stay up to date on clients, and unifies massive amounts of data from many disparate sources. A firm’s tech-stack does fundamentally change the way the firm operates, but sometimes external factors (like a pandemic) force change as well. Having robust technology leaves an organisation in a better position to effectively manage client relationships and scale—no matter what change may come.

Myth #2: Switching to new technology will be more trouble than it’s worth
While working with people will always be an adviser’s bread and butter, technology supports those efforts by creating a better client experience. If an advisory firm is growing quickly but their technology is holding them back, it may be time to make a switch. There are steps one can take to ensure a smooth transition, including laying out a clear timeline and working with long-term technology partners who set you up for success. Keeping a flawed or outdated system around just because advisers and their teams are used to it will hurt the firm in the long run.

Curated product experiences for every team in an advisory firm, intuitive dashboards that enable quick insights and fast actions, seamless integration to multiple portfolio management and financial planning tools, and workflow automation are all features that help improve productivity and create better client relationships. As a result, the user experience is enhanced and encourages greater employee adoption.

Myth #3: A CRM is for the sales team
While in years past, a CRM may have just been a rolodex of contact information, these platforms have expanded their capabilities to become an essential operation tool for your entire organisation. The information in a CRM, or business management platform, can be useful for every role in an advisory firm; from client service to marketing teams.

Knowledge of your clients is essential to everything you do. Having one place where all of that information is available and up-to-date will streamline vital processes for everyone with any kind of client interaction.

Additionally, business management platforms of today can help advisory teams with just about every part of the client experience. Platforms can be used to manage alerts, audits, important dates, marketing performance, and compliance issues. They can also enhance data reporting and leverage advanced processes, helping your organisation move more efficiently than ever.

Myth #4: My firm is too small for FinTech Solutions
Some advisers feel that FinTech solutions are too expensive for their organisation. Small financial advice firms often fall into the trap of thinking that their client list is small enough to maintain without dedicated software. Both of these instincts are based on outdated information.

Many technology solutions are relatively affordable. Financial advice firms of all sizes can benefit from the client management, visibility and workflow automation tools offered by today’s FinTech applications. Additionally, adding new technology can set you up to expand and onboard new clients; a must for any firm that wants to grow.

Myth #5: My team isn’t ready to switch
New technology will only be successful if the firm is ready to use it. Staff may resist change that disrupts normal workflows, even when new FinTech tools will actually make their lives easier.

If there are concerns advisory teams aren’t going to use the system—either because of a lack of knowledge around it or an unwillingness to embrace the new—they’ll need to be aware of the change. Ensuring buy-in is key. It’s important to emphasise the long-term benefits, even if it’s inconvenient in the short term. Some technology providers provide remote onboarding and training, so even if teams are spread out across different locations, they’ll still be properly informed.

Change management is an important part of any new investment or technology upgrade. Take the time needed to educate staff and get everyone on board to ensure success.

Take steps towards real growth
It’s critical that financial advisory firms continue to move forward and modernise their operations. A big part of this process may involve letting go of some long-held ideas or myths related to financial services technology. After many years of helping financial advice firms of all sizes leverage technology to grow, it’s crucial to let go of these myths to take actionable steps towards becoming an advisory firm of the future.

This article was part of TWM's recent APAC Wealth Technology Landscape Report (2021). Click here to access the full report.