An RIA tech stack is a comprehensive set of technology solutions designed to streamline operations and support your firm’s growth. It combines critical functions like client onboarding, data management, and portfolio analytics to enhance efficiency and client service. With an optimized tech stack, financial advisors can minimize manual tasks, improve data accuracy, and offer a more seamless client experience. A comprehensive tech stack is more than just a collection of tools—it is the framework for a well-built advisory practice. Clients view their relationships with advisors as investments, too, and expect real value in return. To meet these expectations, advisors can build a tech stack that enhances efficiency, scalability, data security, while providing a holistic view of client information, ultimately delivering better outcomes.
In this post, we’ll share some key things to keep in mind as you build a tech stack to fit your own business needs.
RIA technology must-haves
Tech stack configurations are as varied as RIA firms themselves. However, there are certain key components that many RIAs consider essential. As you explore your options, consider the following:
Customer relationship management (CRM)
For Registered Investment Advisors (RIAs), a CRM platform can go beyond traditional customer relationship management functions. The right RIA tech stack can help advisors streamline interactions, organize data, and automate workflows to create more personalized client relationships. Improved CRM functionality in your tech stack can also strengthen client satisfaction and retention, supporting continued firm growth.
Financial planning software
Tech stacks featuring financial planning software that integrate client data, goals, and portfolio information to support personalized financial planning can transform the value of an advisor’s practice. Advisors who use financial planning software can assess client needs, model scenarios, and adjust plans as needed. Leading with planning and leveraging financial planning software can deliver more value and align plans with clients' long-term goals.
Client portal solutions
Delivering a high-quality client experience is incredibly important in today’s competitive marketplace. A client portal offers your clients on-demand access to their financial information anytime. Clients can view portfolio performance, access documents, see comprehensive overviews of their finances, and track financial goals in real-time.
Wealth management platform
Wealth management platforms and reporting tools support advisors in creating, monitoring, and analyzing portfolios more efficiently. Wealth management tools typically include performance reporting, tracking, trading, portfolio rebalancing, and more. This fully integrated, end-to-end technology solution addresses the entire wealth management experience and helps advisors move through the phases of the wealth management process with their clients—from planning to proposal to account opening and review—all within a unified experience.
- Trading & portfolio management
Within wealth management platforms, trading and portfolio management tools help enhance an advisors’ operational efficiency. They automate tasks like portfolio rebalancing, model construction and management, tax-loss harvesting, and trade execution to help advisors assess risk, evaluate asset allocation strategies and deliver tailored investment solutions for every type of client.
- Performance reporting
Accurate performance reporting helps advisors visualize and measure how a client portfolio is tracking toward their goals. Effective reporting tools aggregate and analyze financial data from custodians, financial institutions and data aggregators, providing insights into portfolio performance, asset allocation and goal progress. Customizable reports and real-time analytics empower advisors to address specific client needs, positioning their practice for long-term success.
Additional tools for your RIA tech stack
- Compliance and cybersecurity software
The importance of robust cybersecurity and compliance management cannot be overstated for RIAs, particularly when managing financial assets. These technology solutions help advisors safeguard client data and provide a framework for regulatory compliance. RIA compliance software helps advisors manage reporting requirements, maintain audit trails, and minimize the risk of regulatory issues. Cybersecurity features protect sensitive financial information from unauthorized access and potential breaches.
- Document management systems
Paperless communication has been on the rise for years, and your clients expect the same from you. Filing cabinets and physical signatures are a thing of the past—it’s time to embrace e-signatures and digital storage. Document management systems provide a centralized platform for storing, organizing, and securely sharing important files. They streamline day-to-day document handling, reducing paper clutter and allowing for easier data retrieval. Not only do these systems make advisors more efficient, their built-in security measures also help protect sensitive documents from unauthorized access.
The future of RIA technology
Technological enhancements, combined with rising investor expectations, make staying ahead of the curve critical for RIAs looking to grow their business. While the idea of adopting artificial intelligence (AI) or machine learning may seem daunting, these innovations represent the future of wealth management. They're already transforming decision-making, portfolio management, and client service. Let’s dive into these emerging technologies—and why you might want to start embracing them today.
- Artificial intelligence (AI) and machine learning
With AI and machine learning, wealth management advisors can make more data-driven decisions and automate time-consuming tasks. AI can help advisors streamline portfolio management, optimizing asset allocation, and delivering personalized client solutions with very little overhead. With machine learning, their algorithms can help improve risk management by identifying patterns and potential risks earlier than a human might. A proactive advisor can transform the way clients view their services.
- Data analytics and predictive analytics
Among the latest RIA trends, data analytics, decision intelligence (DI), and predictive modeling are quickly emerging as crucial tools for advisors. The roles of these technologies are transforming decision-making from an abstract concept into a measurable business process. Wealth management firms can use DI tools to analyze vast amounts of financial data and client information, providing personalized advice and improving client satisfaction. By using advanced analytics, advisors can predict future financial scenarios and market trends, uncover hidden patterns in client behavior, optimize portfolios, and manage capital gains,. This allows advisors to proactively engage with clients, offering tailored advice that aligns with their predicted financial behaviors. The result? Improved client satisfaction and stronger advisor-client relationships.
Building the future with the right RIA tech stack
Technology isn’t going away. While the wealth management industry is slow to adapt, RIAs as business owners are forced to adapt quicker and better than their competition. A comprehensive and effective RIA tech stack—armed with the right combination of tools— can help advisors stay relevant in a world where competition is fierce and investors’ expectations and financial lives are more urgent, more complex, and more nuanced. Learn how Envestnet stacks up with other RIA platforms.
To see firsthand how Envestnet can help your RIA Practice, visit Envestnet.com/RIA.
