5 tips for adopting and integrating new RIA technology

Many digital tools are no longer nice-to-haves. They're need-to-haves.

The right technology can free you from repetitive and mundane tasks so you can focus on more important matters, such as spending more time with clients and growing your business. In a competitive industry, a streamlined practice that gives clients the attention they need can make all the difference.

No doubt your firm uses some technology, but chances are you're due for upgrades. So, where do you start? How can you accelerate your tech strategy and help both employees and clients make the most of new tools? What if some clients are reluctant to use new technology? Consider these five tips for making your technology upgrades go more smoothly.

1. Define clear business goals for your tech strategy 

Technology has the potential to help you reclaim time to spend with clients, grow your business without adding staff, and expand the services you offer. But you want to make sure you're investing in the right tool for a given job.

Defining what you want your tech strategy to achieve can help you decide which upgrades to implement first. It can also help you establish effective metrics for measuring the success of your strategy. For example, if you expect to double your clients over the next five years, what technology will help you grow without doubling your staff? Developing clarity around your goals and vision can also help you earn buy-in with employees, which is essential if you want to maximize the value of your new tech.

Jamie Wilson, chief operating officer at Capital Advisors, believes firms should create a technology mission statement, then make a plan. By being intentional and putting it in writing, Wilson is able to match technology to her firm's goals.

"We have a mission statement for our tech department. From there, we built an action plan," says Wilson. "One of the key pillars of our five-year plan is to invest in and adopt more technology, not only for portfolio management and client service, but also for employees. Our goal is to use technology to provide better experiences for everyone."

Technology planning also requires firms to recognize that it’s going to be hard to convince some clients that new technology is good for them. That’s okay. Don't let a few holdouts keep you from looking to the future. Make a plan that allows clients to opt out if they simply won't change.

Read more about how technology helped Capital Advisors grow faster.

2. Start with a central platform or key task and build from there

Choosing one tool to adopt first can give you a solid base to build from. It can also make the next step a lot less intimidating.

For example, you might establish your firm's customer relationship management (CRM) software as the central hub for your digital strategy and build from there. A targeted approach, focused on one upgrade at a time, can help you make full use of a new tool's capabilities. And by breaking up an overall technology upgrade into smaller parts, the process can feel more manageable and help you build momentum toward each improvement. Just make sure you're looking ahead to potential integrations so that each future upgrade works well with your existing technology.

3. Educate and empower your staff

Technology is always changing. So is your firm. Empowering your staff to take ownership of your tech strategy can help you do more with your tech tools.

Matt Reiner, managing partner at Capital Investment Advisors, believes in building a digital culture based on learning.

"We want everyone to feel empowered to suggest changes in our digital processes or take the lead on new digital tools we might use," says Reiner. "Trying new things may mean running into challenges and hurdles—and even failing. We strive to learn from it."

Firms with a culture of continuous improvement tend to get more value from their technology because staff members don't settle for inefficient processes or adopt shadow technology to work around broken systems. Creating opportunities for people to be technology leaders also helps prepare junior staff for future leadership positions.

Read more about the digital culture at Capital Investment Advisors.

4. Lead with digital options in client relationships

Afraid your clients will resist digital tools? They might. But they also might surprise you.

The 2023 EY Global Wealth Research Report found that 69% of clients preferred to monitor and review goal progress either with their advisor via virtual tools or on their own using digital tools. The study found similar results for creating or maintaining a financial plan (56%) and discussing values in their plan (50%).¹

As you introduce client-facing technology, develop a digital experience complemented by high-touch assistance to make clients feel comfortable. For example, tell clients you'll sign them up for online access to your client portal, giving them the choice to opt out. Then guide them step-by-step through the process, explaining the benefits and convenience of online access.

In general, clients aren't eager to jump into the digital unknown on their own. However, if you opt them in automatically, they're likely to adopt the new technology and soon won't be able to imagine life without it—even clients who may have resisted in the past. You can also help shift attitudes by changing the language your firm uses. For example, do you need to call onboarding information "paperwork"?

Today, nearly all your clients are on Zoom, shop online, keep up with grandkids on social media, and fire off DMs from their phones. They're ready for the digital tools your firm has to offer—and for those who aren't, that's okay.

5. Learn from others

Whether you like getting into the techie details or would rather leave it to the experts, there are many ways to get help. Tap into networking events, attend webinars, or meet with consultants and other experts. In addition to Schwab's resources for clients, you can also connect with your vendors' in-house experts who have worked with many firms on tech upgrades.

What's important is that you try to make progress. Technology isn't all-or-nothing. Pilot a digital option to see what it might mean for your firm, and make sure you have flexibility for different client needs. For example, many firms use DocuSign as their first option, but can also use paper processes if necessary. Your technology doesn't have to be perfect out of the box to offer significant value. Like with investing, starting now and scaling bit by bit, improving as you go, can bring huge long-term benefits compared to staying on the sidelines and falling further behind.

Finding experts, asking questions, listening to feedback, and constantly looking for new ideas can help you cultivate a culture of continuous improvement. And really, isn't that what technology is all about?

What you can do next

If you already work with Schwab:

• Learn how to jumpstart your digital journey with Schwab's digital tools.
• See how your adoption of core Schwab tools measures up to your peers with our technology adoption dashboard.

If you don't yet work with Schwab, consider a custodian that is invested in your success. Contact us to learn more about the potential benefits of a custodial relationship with Schwab.