"Less of a tech stack, more of a patchwork" - Ouch! 🔥
But that, along with an average adviser rating of just 3.24 out of 5 for their back-office system, is not particularly surprising (well, unless they're a client of Evotra of course).
And it can go in my #wealthtech buzzword box 🧰 along with "clunky" and "frustrating".
NextWealth's recent Data Openness report hits the nail on the head:
Consolidators are acquiring businesses with poor legacy data - an inevitable by-product of an industry that until relatively recently was largely paper-based (and frustratingly still is in some areas). No wonder, then, that these firms are struggling to innovate, create efficiencies and improve client experience.
Here are some things that we often recommend to help mitigate that very challenge:
💡 DON'T just assume your existing tech is the cause of the problems. It might be! But investing time and money on making it work better for you is likely to be far less costly than switching tech altogether (where the same data issues will just rear their ugly heads anyway).
💡CLEANSE your legacy data. I realise it's a painful and stodgy exercise, and it takes valuable resource away from their day jobs, but it's the only way you'll ever really leverage the data-driven benefits of things like slick MI reports and AI tools.
💡Invest in your PEOPLE. Tech can be hugely powerful - yes, even the back-office systems that get such a bad rap - but the reality is that you need the people in your business to think strategically about what they want it to do for them and what a good TOM looks like (as opposed to just sticking tech on top of tech and hoping it will add value). The same goes for looking after your people in BAU roles too - good training and leadership will help your teams follow #process accurately and enter #data diligently. And no matter how good the tech may be, getting those basics right will continue to be a vital piece of the puzzle for some time yet..
"Less of a tech stack more of a patchwork" - that's my favourite line from our latest report on adviser tech. Chanelle Paynter (Née. Pattinson) wrote the report and if you'd like more details let us know. Some platforms have really upped their game - 6 got scores of 4.00 or higher on a 5.00 scale. Impressive!
Founder @4admin | Automating LoAs for wealth firms | Built it for my mum, now used by 100+ clients
4wPatchwork might actually be charming 😅