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Technology upgrades can boost productivity, AUM, and revenue

September 7, 2023
clock 4 MIN READ

Wealth management firms that transform their technology reap businesswide benefits. Research indicates that these benefits include, on average, a nearly:

  • 14% increase in productivity
  • 8.1% increase in assets under management
  • 7.7% increase in revenue  

But updating old technology can be daunting. Where do you start? How do you align your business and technology strategies? How do you upgrade your technology in a way that can help increase current productivity and supports future growth?


Start with a clear goal

Every firm is different. Your focus might be:

  • Enhancing your digital customer experience
  • Expanding a service
  • Supporting growth by improving operations

No matter what your focus is, it’s important to start with a clear outcome aligned to your business goals. 


Keep it flexible 

When you plan your technology overhaul, keep flexibility in mind. As you think through your options:

  • Don’t sacrifice long-term strategic value for short-term advantages.
  • Build your core infrastructure thoughtfully. Be sure it can support current business needs and future demands.
  • Consider outsourcing some of your operations. You may find benefits to rethinking your business model and restructuring your operational costs.

Harness the power of cloud technology

A cloud-based repository can improve a firm’s ability to use data to:

  • Gain valuable insights that inform future decisions
  • Provide more personalized advice
  • Build stronger client relationships

Improving data-driven decision-making is a top strategic priority for 67% of wealth management firms, according to Arizent.  Firms can use data that’s accessible and integrated to get a clearer picture of their clients’ finances. Clients—and their advisors—can use these insights to make more confident decisions about the future.

Don’t forget the power of people

A digital transformation—especially one that transforms your end-to-end business and outsources processes—is a combination of people, process, and technology. Actively managing the people side of change can build commitment and buy-in across the business. 

Managing change is easier when you:

  • Adopt a culture that encourages innovation and transformation
  • Include stakeholders early in the process
  • Communicate goals and objectives clearly and often

Ready to begin building a roadmap to transform your business? Consider the value that a strategic technology partner with in-depth experience and expertise can add.

Build a roadmap to drive your success

Ready to power the future wealth of your clients and meet current market challenges? Start by embracing change and identifying a clear path forward. 

A clear and thoughtful roadmap with realistic timelines and diligence is key. Every successful technology implementation begins with planning and establishing requirements. Next: Designing, building, and testing. And finally, implementation.

A strategic partner with a demonstrated track record of on-time and on-budget delivery can help:

  • Guide the process
  • Keep business requirements top of mind
  • Provide peace of mind enabling confident decisions throughout the transformation

Building a robust infrastructure, providing a full picture of your clients’ wealth, and having protocols in place can help empower your customers, drive growth, and protect your firm—today and in the future.


Important information

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. 

Statements that are not factual in nature, including opinions, projections, and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice. Nothing herein is intended to be a forecast of future events, or a guarantee of future results.

Certain economic and market information contained herein has been obtained from published sources prepared by other parties, which in certain cases have not been updated through the date hereof. While such sources are believed to be reliable, neither SEI nor its affiliates assume any responsibility for the accuracy or completeness of such information and such information has not been independently verified by SEI.

Information issued in the UK by SEI Investments (Europe) Ltd, 1st Floor, Alphabeta, 14-18 Finsbury Square, London EC2A 1BR which is authorised and regulated by the Financial Conduct Authority. Investments in SEI Funds are generally medium- to long-term investments. 

Information provided in the U.S. by SEI Investments Management Corporation, a federally registered investment adviser and wholly owned subsidiary of SEI Investments Company (SEI).