But in family offices and wealth management, technology—particularly family office technology—is more than a nice-to-have: It’s become vital for continued relevance, i.e., a multi-family-office best practice. Tectonic shifts in the industry—from the emergence of new asset classes to the precipitous rise of cyber threats—have compelled many wealth advisors to embrace technologies that are redefining the industry.
And whatever the focus—data reporting software, investment performance software, family office accounting software—“wealthtech” can indeed bring many blessings, from better data quality to pared-down processes. But selecting the right technology vendor can be difficult for wealth managers, whose expertise, after all, lies elsewhere.
We here at Masttro have helped many clients through technology adoption decisions. Here’s what we tell our clients to consider during those deliberations.
…what you hope to gain. Solicit input from colleagues across departments to learn which problems technology might solve. Are there inefficiencies bogging down your IT team? What pain points might technology eliminate for your accounting staff?
Once you understand current needs, think about the future. In recent years, some wealth managers have been caught flat-footed by the dramatic rise of new assets such as crypto. Others continue to fail at properly tracking non-bankable assets like art collections. A partner that is ably addressing these shifts today will likely be prepared for the shifts of tomorrow.
… what onboarding will look like—and cost. Technology adoption takes time and resources, and can be quite complex. When sourcing a technology vendor, look for an established player in the field that can tailor implementation processes to your organization’s needs and abilities.
Of course, price is a serious consideration as well. And while you don’t want to pay for extra features you don’t need, you also don’t want to choose an appealingly-priced option that you may come to regret. Speak with potential vendors—as well as past adopters of their systems—about hidden costs and flexible pricing options.
…your cybersecurity priorities. It goes without saying that data security and privacy is a primary concern. The best technology solutions will allow users to reap all the benefits of transparency while still vigilantly safeguarding sensitive data. Choose a vendor that adheres to the highest standards of data security rigor.
Increasingly, wealth advisors are orienting themselves for an ever-more-digital future. It’s hard to overstate the importance of choosing the right technology partner—a decision which will vary across organizations with differing priorities and needs. At Masttro, as the leading technology partner to wealth owners and those who advise them, we know the complexities of technology vendor selection firsthand. Get in touch with a Masttro team member to learn more.