By Alex Sauickie, President and CEO at CircleBlack
Wealth managers are becoming acutely aware of the critical role technology plays in cultivating and preserving client relationships. As we approach the end of 2021, now is a great time to boost your firm’s digital prowess by assessing your technology needs and what your firm may be missing. Here are three essential components your tech stack should include:
It’s not enough to personalize client service—it must be “hyper-personalized” to meet investor expectations. This means knowing a client on a much deeper level in order to offer recommendations that cater to their specific goals and portfolio needs. This is essential to providing a highly-customized experience. Hyper-personalized tools ultimately foster better communication, strengthen brand identity, cultivate stronger relationships, and increase overall transparency.
Hyper-personalization continues to rapidly develop, fueled in part, by prolific advances in data analysis and artificial intelligence (AI) technologies. To stay competitive and meet growing investor demand, wealth managers need to ensure they’re adopting the latest capabilities in this space.
According to Capgemini, only 40% of high-net-worth investors are satisfied with the personalized offerings of their wealth managers. Our goal at CircleBlack is to help overcome investor disconnect through tools that offer clients deeper insights into their financial pictures and that plays a larger role in helping investors build assets. We deliver this experience through a white label dashboard with a modern interface.
With CircleBlack’s technology, wealth managers can hyper-personalize through workflows such as trading, rebalancing or financial planning, by specific job role, or by experience based on individual user profiles. We also offer Model Marketplace management tools to customize data as strategies evolve.
To help ensure a compatible tech stack, choice is imperative. Offering choice hinges on a platform’s ability to fully integrate its applications. Those programs should fully sync with the needs of a practice, allowing an advisor to interact with the data at the point it makes most sense. The ability to integrate also means wealth managers won’t encounter the problems associated with the archaic infrastructure of legacy systems, including costly upgrades.
At CircleBlack, we offer a digital marketplace that allows advisors to select—and pay for—only the applications they want, minimizing costs without disrupting internal systems. Our unified best-of-breed wealth management platform uses five-star technology to aggregate data from multiple feeds.
We start with our own comprehensive portfolio management & performance reporting. From there, advisors can customize a modern, cloud-based tech stack by choosing the CRM, trading, risk and planning tools that work best for them. The platform will seamlessly integrate all of them allowing real-time data sharing, while avoiding the operational quagmire that comes with disconnected systems that don’t communicate with each other.
The best platforms are designed to be fluid—ready to evolve and expand as the needs and preferences of advisors change, with the goal of making them an indispensable part of their clients’ financial lives.
If advisors want a true, three-dimensional understanding of their clients, they need to incorporate aspects of behavioral finance through artificial intelligence within their tech stacks. Considering the psychology behind investing helps clients understand the relationship between their beliefs and investment choices. AI also enables wealth managers to react appropriately to these biases.
These tools assume that clients have strong feelings about their wealth and investments, and then seek to identify and address those feelings that may be hindering asset growth or slowing progress toward goals.
Behavioral finance tools can shed light on how clients feel about their investments, including identifying beliefs and preferences that may be leading to irrational decision-making. They have vast potential to help clients reach better outcomes.
With our platform, advisors can use data and analysis to spot signs of harmful biases, whether related to overconfidence, wishful thinking or conservatism, and flag that behavior for clients through “WealthAlerts.” The advisor can recommend data-based corrective steps to eliminate the bias and compensate for any impact it may have had on the portfolio, ultimately improving overall financial wellness.
Alex Sauickie is the CEO of CircleBlack, unified best-of-breed wealth management platform that consolidates data from multiple custodians and allows advisors to choose the best solutions to fit their tech stack.