Part 1: Does Your Tech Stack Embrace ‘Financial Therapy?’

by | Sep 10, 2021

By Sarah Rasmuss, Chief Product Officer for CircleBlack

In this two-part series, we examine how tech stacks serve two purposes; first, a robust tech stack enables advisors with the agility to manage wealth, and secondly provides the tools to provide financial therapy to make clients better investors. Here’s how:

With the right tech stack, advisors can aggregate data from multiple feeds and flawlessly blend risk and financial planning programs into their platform, quickly digesting a detailed view of assets to manage client portfolios. They can communicate through a range of digital channels and, with the advent of “hyper-personalization” tools, they can use data analysis and artificial intelligence technologies to create highly customized client experiences.

But are these capabilities only scratching the surface? What if advisors could connect to clients on a much deeper level, becoming an indispensable guide who was able to change how they think about money? This “behavioral finance” technology is already here and, with it, advisors can potentially redefine the client relationship.

Can your client become a better investor?

Advisors know they can no longer compete on investment performance alone. Investors expect platforms to offer seamless service and multi-channel communication. And they expect advisors to manage their full-cycle of “financial wellness.”

Financial wellness describes the state investors achieve when they incorporate the slate of healthy financial behaviors, such as reining in overspending, securing retirement funds, and planning for emergencies. It is the state advisors seek to reach with investors.

Reaching financial wellness requires individual attention. For a three-dimensional understanding of each client, advisors need to go beyond traditional wealth management approaches to incorporate aspects of behavioral finance—considering the psychology behind investing to understand the relationship between beliefs and choices. Many do not realize, however, the extensive role a tech stack can play in achieving this goal.

Our portfolio management and performance reporting technology tightly integrates with your tech stack and custodial feeds to provide advisors with a 360- degree view of their book of business and a financial therapy toolbox for your clients.  Contact us to learn more.

Sarah Rasmuss is Chief Product Officer for CircleBlack, a 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.