Adviser Technology: Unearthing the 'must-haves' - Selecting and integrating appropriate technology for your business

Francis Marais, Product Director at Morningstar Investment Management SA

With rapid evolution in all spheres of life, technology has sought to keep pace, adapting to trends and shifting consumer attitudes and requirements.

But with more tools, software as a service (SAAS) and apps available to advisers than ever before, it can be hard to filter through the noise and understand what will really be of benefit to you, your business, and crucially to your clients.

In a recent panel I hosted, panellists Robyn Clay, Director at Linktank and Mark Sanderson, Managing Director at Morningstar Wealth UK and International, shared their insights on technology and digital transformation. They looked at some of the emerging tech trends locally and abroad that can enable you to harness the power of technology within your business.

Integration as a key concern
The lack of a standardised data set often means CRM technology and other software solutions are not able to integrate with each other. The panellists pointed out that the creation of a standard data set has to be driven by the industry, through collaboration between product providers, and potentially by regulatory bodies.

This lack of integration is however not exclusive to South Africa. “It is the biggest challenge for advisors from a tech perspective, globally,” Sanderson said. “A data standard is a filter that converts data into a single common language that other systems can then consume,” he explained.

A data standard should be accessible and affordable to the average middle-sized practice. Size, ability and cost involved are all considerations.

Digital transformation and emerging technologies
Digitisation is a much larger consideration than simply ‘going paperless. “Digitisation centres on your engagement with clients and your ability to focus on the things that customers really care about,” Sanderson said.

It means having a single source for all client information, a place where all data is aggregated and understood. Whether or not your organisation is ready for a complete digital transformation, it is advisable to control your data in a centralised location or SharePoint, which will ease any future migration.

Emerging technologies such as behavioural finance tools can provide intermediaries with insights, allowing advisors to engage more easily with clients and closing the distance between advisors and clients, resulting in deeper engagement.

Covid enabled advisors to service clients digitally, and as the younger generation of clients emerge, there is an expectation to engage with them differently.

Embarking on a digital transformation is not just about adding technology to your business, but about understanding your business and operating model and identifying the appropriate technologies that will help your practice reach its potential.

“In order to make a good decision about what technology to implement into your practice, you need to truly understand what you need. Not just what the management team needs, but also the administrators and every single person in the business,” Clay said.

She advised bringing your entire team on board for any tech strategy you plan to invest in. “Spend time on the process initially, as it will save time and money in the future by ensuring you make the right decision.”

Technology should adapt to your business requirements, not the other way around. While it is easy to be led to by an outcome, knowing your business and process is important when onboarding new technology. “Embedding technology is about going on the journey and getting everybody involved in the change,” Sanderson said.

He advised firms to seek external support for the process if their budget allows and to bring the whole organisation along on the digital transformation journey. “Remember the humans in the business.”

Clay added it is important to remember that a technology strategy is a journey. “You will continually review your plan; it will change and evolve and will likely never be perfect. And that’s ok.”

The quantifiable benefits and measurable goals of technology should match your business priorities, like increasing revenue and productivity while decreasing costs. Consider investment in technology as an investment in your future business practice.