The “Valley of Death” is not a challenge unique to start-ups and industry disruptors. The financial industry (See Investment News: Advice firms in a tricky financial position), especially mid-sized to large RIAs feel growing pains as well. They build solid businesses, with strong growth, but then it hits. The firm’s leaders spend all of their time servicing current clients, losing the ability to meet with and acquire new clients. Meanwhile, growth stagnates or even begins to decline as aging clients begin to spend down their investments. The advisor has hit her or his capacity. Literally loved to death by their clients...advisors find themselves in the “Valley of Death”...
Traditional "How to Grow Your RIA Firm" advice focuses on new client acquisition. Activities may include: hosting local seminars, advertising in local publications, and strengthening relationships with local centers of influence, (e.g. CPAs and estate planning attorneys). While such strategies can net RIAs new business, not all advisors and firms have the budget, skills, or time to pursue such initiatives. They are already swamped serving current clients. To build these marketing programs, firms will have to add headcount or hire expensive consultants. The other way to grow is to improve your back office functions through technology.
How can advisors avoid adding staff to their team and still grow their book of business? Add technology! Deliver a custom branded, Automated Digital Advice platform that automates portfolio model selection based on client goals and risk tolerance.
Disruptive, Digital Advice technology, allows advisors to reach more clients and provide access to their exclusive strategies in a mobile-friendly format.
Utilizing a “One size fits all” operating model can result in under-servicing top-tier clients and losing money on low revenue generating clients. This cycle undermines the ability to bring on more clients and provide the personal service and advice they demand.
However firms with a flexible On-Boarding for clients with smaller accounts in an elegant, frictionless manner, are seeing AUM grow and improved client engagement.
Thus saving valuable time without sacrificing revenue, relationships, or adding staff.
Seeing one’s way through the” Valley of Death” is simply a matter of applying the right solution to time-wasting problems. What are the things eating away at your capacity to grow?
About Advisor Software:
Advisor Software's mission is to advance the science of wealth planning so financial advisors can focus on the art of advice delivery.
ASI provides cloud platforms to empower today’s advisor and wealth management companies. Customized to suit the needs of each of our clients, ASI’s products address a range of advisor functional needs, including Digital Advice, Planning, Proposal Generation, Portfolio Construction, Rebalancing, and Investment Analytics.