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Why technology is vital for RIAs looking to steady client nerves in stormy markets

A steady, clear and scalable flow of information can help keep investors bullish in a bear market

Wednesday, November 30, 2011 – 5:48 AM by Guest Columnist Andrew Peddar
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Andrew Peddar: An overload of information and the speed at which it's delivered can lead to the inevitable paralysis by analysis for the investor.


Robert DeFrancis

Robert DeFrancis

November 30, 2011 — 10:17 PM

Full disclosure, I’m the Director of Sales for Junxure.

While I totally agree with Mr. Peddar’s recommendations to start providing clients up-to-the-minute information, it’s important to note that cloud-based technology is not necessary.

There are systems like our ClientView Live that allow an advisor’s customers to view the same information the advisor has on his local server right now in a secure, encrypted environment — no cloud-based system necessary.

Elmer Rich III

Elmer Rich III

December 1, 2011 — 12:26 AM

“There is no technological solution for a relationship problem.” A very wise and rich client once told us.

If you are selling tech “hammers”, everything looks like a tech “nail.” In fact, any significant jumps in functionality are likely not coming from tech in the future. The low hanging fruit has been picked. There seems to be a limiting factor happening in tech now — the more “heat,” the less “light.”

Also, like with some many tech innovations now, like social media, just because VC will fund it does not mean it has any economic function — other than an IPO.

Let’s take the idea of 24/7/365, on-demand, real-time communications with clients. There is good evidence that this kind of info glut can severely cripple both client decision making and advisor relationships. Does any advisor know of a client helped by the always-on CNBC financial news?

Best to take the (sales) promises of technology as hypotheses, eg, if we give clients always-on access — what are the consequences?

Also, it is just fiduciary prudence to ask any vendor for data and evidence of products and services actually doing what they promise.

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