Financial technology, or “fintech,” is here to stay. A recent article from Investopedia pointed out how global investments in fintech ventures surged to $210 billion in 2021, and how advisors must adapt to these new technologies in order to thrive.^[1]

For independent broker-dealers looking to scale their business, having a trusted technology solution in place to automate things like compensation and compliance is essential. It can make your firm run like clockwork, and the improved efficiency can help you increase revenue and reduce overhead.

Here’s how automation technology can prepare independent brokers for growth:

Retain and Attract Reps

The most vital key to the success of any broker-dealer is their team of representatives. That’s why it’s important to offer tools that make your reps’ lives easier. Tools like high-quality CRM software can help your reps access all the data they need to better meet customer needs. Technology can ensure that your reps are paid on time and have a positive experience with your firm.

Such “quality of life” benefits can also play an important role in your ability to attract new reps. According to Deloitte, the advisor population is aging and undergoing a transition — 43% of US financial advisors are over the age of 55 years old, and a significant portion of the workforce will likely retire in the coming years.^[2] This means that as the industry shifts, any edge you can gain from providing helpful, effective technology solutions will position your business for long-term growth.

Identify Missed Business Opportunities

A great technology solution should act as a second set of eyes, helping your reps catch potential business opportunities that might have otherwise fallen through the cracks. From data analysis to expanding your reps’ ability to meaningfully communicate with clients, a well-built system can uncover and enable new selling opportunities. For example, reporting software can help identify accounts with large cash positions and point reps to accounts where client assets can be better deployed.

Simplify Internal Processes

Sales isn’t the only area where your firm will benefit from technology. New financial technologies are reducing overhead and allowing organizations to do more with less.

The cost of core functions like addressing rep compensation and maintaining regulatory compliance can be significant. According to a 2018 report from the Competitive Enterprise Institute, firms are paying up to $10,000 per employee to cover compliance costs.^[3] Technology that automates these processes can be a financial boon to managers.

In addition to cutting costs, technology can save time and reduce risk. A powerful compliance management tool can automatically monitor trade activity within your firm and help supervisors quickly identify non-compliant transactions and other regulatory risks.

How EAI Can Help

As the advisor industry continues to transform, having a great technology solution in place is necessary to position your firm for future growth. That’s where EAI can help. Our systems help you better manage the complexities of your firm’s business, from compensation to compliance.

We start with an extensive review of our clients’ procedures and data sources. Then, we tailor the software to comfortably integrate into your existing compensation or compliance processes. Finally, we perform testing with actual users in your firm to gather feedback and ensure the software is meeting your specific needs. All to help you save time, boost sales, and keep compliant.

If you’re ready to use technology to scale your business, reach out to us to schedule a demo! We’d love to walk you through how EAI can set you and your team up for success.

Sources

¹https://www.investopedia.com/tech/how-fintech-disrupting-wealth-management/

²https://www2.deloitte.com/content/dam/Deloitte/us/Documents/strategy/us-cons-disruptors-in-wealth-mgmt-final.pdf

³https://cei.org/sites/default/files/Ten_Thousand_Commandments_2018.pdf#page=18