Taken from this LinkedIn post by Dean Casey
Why is wealth tech so frustrating?
Simple.
It’s a grudge purchase—a necessary evil that no one wants to buy. It’s an expense, a headache, and a source of endless frustration. You never really know if you’re paying too much, too little, and it never seems to work as well as you hoped.
But here’s the truth:
Wealth tech only sucks if it doesn’t deliver value.
So the big question is:
What exactly is that value?
Most sales pitches base value on a rule of: It must either make money or save money.
Cool, then choosing a system should be easy. Either get the one that inspires your client to buy more from you (make money) or the one that automates and runs your business for you (saves you operations costs).
That sounds like an easy choice. But in reality, it’s not so simple.
What is the value of peace of mind?
A good friend, John Prendergast , who runs Blueleaf Wealth , a significant wealth tech vendor, once told me,
“Selling wealth tech systems is like selling toilet paper!”
It’s hard to quantify the value in strict monetary terms. But, when you need it, and it is not there ….
So there is value. Where is it?
The answer lies in understanding what you really need from it. This can be divided simply into two categories
Enhance my customer experience
If I do, will I get more referral business or upsell products? And increase my client retention?
Automate my internal processes
Will this free up time? Reduce human error? Allow me to service more clients with the same effort?
Doing one or both of these = GROWTH
If technology was the solution to achieving these then subtract that cost from your growth and you have your ROI.
What next?
Next week I will give you some simple steps to find the areas of your business that will benefit most from technology.
In meantime here is something to think about:
When Bells and Whistles Don’t Add Value
Consider this: I once worked with an advisor who bought a fancy portfolio modelling solution. It had impressive features: modelling on a range of metrics, drift, compliance, order aggregation, the works.
It was supposed to revolutionize his practice and save his team 100’s of hours every month.
But his team didn’t like it. Instead, all they did was export the model data to Excel because it was easier to operate.
The software was great on paper but useless in practice because it didn’t fit into his workflow.
The lesson? Tech and processes need to be aligned to be effective!
Sometimes the best tech solution is a junior admin person
Stay tuned and have a great weekend!
PS Want to fast track this knowledge? Contact me to learn how I can help you solve your wealth tech pain.